Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report

1. Executive Summary

1.1. The purpose of this paper is to provide information on the proposed Reading Transport Innovation Fund (TIF) bid to Government and to agree the initial level of Hampshire County Council commitment to the process.

1.2. This paper seeks to explain the development of the Reading TIF Package bid of transport schemes for the wider Reading Travel to Work Area. It also highlights the potential to secure funding to deliver a range of transport improvements in the northern part of Hampshire, which can be included in the Reading TIF Bid.

1.3. The County Council is being asked to formally sign up to the TIF process and agree the partnership status at which it wishes to initially operate. A level of Programme Partner is needed if the County Council wishes to have access to funding as part of the TIF package. TIF funding has the potential to provide 60-90% of the total cost of the agreed transport infrastructure improvements, with the balance being secured from other non-Government sources, such as the rail industry, developers or local authority funds.

1.4. In order to maximise the potential to secure funding for these transport infrastructure improvements, it is considered that Programme Partner status should be signed up to. However, this would be kept under review, to ensure that the direction of the TIF package remains consistent with the County Council's wider aims and objectives.

2. Contextual information

2.1. The TIF is a transport funding mechanism, initially announced in the 2004 White Paper 'The Future of Transport'. The fund has two strands for supporting different types of project: Congestion TIF where local authorities bid for funds for their own schemes; and Productivity TIF where the Department for Transport (DfT) will identify schemes of national importance. In relation to Productivity TIF, funding has been secured for a range of schemes including the gauge enhancement of the railway between Southampton and Birmingham, to accommodate larger freight trains.

2.2. Reading Borough Council (RBC) has been working with the DfT in a partnership approach to develop a package business case to bid for a proportion of the TIF since 2006. As it was identified early in the process that the bid should apply to a wider Travel to Work Area, RBC has acted as lead authority alongside five neighbouring authorities, including Hampshire County Council, since 2007 to identify a wide range of complementary measures to encourage modal shift to address current and emerging congestion issues in the area. This has resulted in a package worth £313 million, which includes £284 million in capital funding.

2.3. Liaison has been via the Reading Urban Area Transport Liaison Members' Group, which has been extended to include Members from Oxfordshire County Council, Bracknell Forest Borough Council and Hampshire County Council, thereby creating one cross-boundary group, which has been meeting regularly since March 2009.

2.4. Substantial appraisal work has also been undertaken by RBC to develop a TIF package. In advance of a formal TIF submission early in 2010, a suite of documents was sent to the DfT in July to provide evidence that the proposed package represented strategic fit and value for money according to the DfT's guidance on `Business Case Requirements for Programme Entry'. RBC has yet to receive comprehensive feedback on these documents but is in the process of incorporating comments into the proposed final submission.

2.5. The package is set out in three phases that provide a fixed three year programme for phase 1 including a range of complementary measures and provision for the introduction of a Low Emission Zone (LEZ). Phase 1 is proposed to cover the first three years of the programme, namely 2010, 2011 and 2012. Phase 1 does not include any schemes within Hampshire Phases 2 and 3 provide for further complementary measures and the potential to introduce a local road user pricing scheme in Reading (LRUP) subject to tipping points. A degree of flexibility is built in to the later phases to allow for additional schemes to be promoted or for schemes to be altered as demand patterns shift over time, to take account of the flexibility of partner status.

2.6. There is the potential to improve the rail and bus corridor between Reading and Basingstoke, through the inclusion of appropriate schemes within Hampshire in the TIF package.

2.7. For Hampshire County Council to be able to access funds to develop and deliver schemes within Hampshire, the County Council needs to agree to sign up to Programme Partner status. The different levels of status and their requirements are covered in Section 4 below.

2.8. Even if the Reading TIF package is successful in securing funding, by signing up to Programme Partner status, the County Council is not committed to spend money on any particular scheme, or at all if we are unable to assemble enough developers contributions. By signing up at this stage the County Council will be part of the decision making process and able to influence how the money is spent.

3. Finance

3.1. Involvement in the TIF Process at a Programme Partner level offers the County Council the opportunity to access TIF funding to deliver potential transport improvements in Hampshire.

3.2. TIF funding is expected to cover 60-90% of the total cost, including scheme development. The shortfall would need to be found from other non-Government sources, such as the rail industry, developers or local authority funds. There is therefore potential for Hampshire County Council to use existing developers' funding that has been secured for the area.

3.3. RBC has already secured pump-priming funding from the DfT. If schemes within Hampshire are included in the package then the County Council would also be eligible to bid for pump-priming funding under the Reading TIF to develop schemes. The County Council would need to agree to any terms and conditions of the pump-priming funding set by the DfT, as well as to the terms and conditions set by any more permanent governance structure once that is agreed.

3.4. It would be useful for the County Council to estimate and test the likely level and source of local contributions and risk allocation on the financial model currently being prepared by RBC.

3.5. An estimate of the funding required to undertake further investigations of the Hampshire package elements and agreement of timescale when each element may be ready will be required in due course for submission to the DfT for unconditional approval.

3.6. Assuming that Programme Entry is granted, there will then need to be a two-stage process to finalise the initial investment programme - progression of elements to Full Business Case (allowing conditional and full approval of funding) using further pump-priming funding and, subsequently, the allocation of substantive TIF funding for approved schemes to the relevant sponsoring authority to implement works.

4. Performance

4.1. The TIF process has been proceeding, with RBC as lead authority, on the basis of consensus between the partners. It is recognised that, for practicality and completeness of the Programme Entry Submission, formal governance procedures need to be put in place.

4.2. It is proposed that the existing Steering Group becomes the `Joint TIF Investment Programme Board' with membership reflecting three distinct levels of involvement with the ongoing project based on one of three levels of partnership agreement.

4.3. Three levels of partnership status have been identified, whereby authorities may choose to operate at different levels of partnership and decision-making dependent upon what they see as the benefits to their constituents and their political stance. The County Council needs to consider whether it wishes to sign up to one of the categories, namely Full Partner, Programme Partner, or Infrastructure Delivery Partner.

4.4. A Full Partner supports the whole programme, including road pricing if it is necessary to tackle congestion, and can derive the full financial benefits (revenue and capital) of the package.

4.5. A Programme Partner will support and contribute to any proposals within the programme affecting their area and may consider flexibilities around the development and timing of Phases 2 and 3 of the complementary measures.

4.6. An Infrastructure Delivery Partner may benefit from proposals already included in the package. They will be kept informed and may lobby for changes to the programme, but will not have decision-making powers.

4.7. Hampshire County Council needs to sign up to at least Programme Partner status if it wishes to bring its own schemes forward. The County Council could change partnership status during the course of the development and implementation of the TIF package. The draft agreement for each partnership level is shown in Appendix 1.

5. Future direction

5.1. TIF is a long-term proposal with three phases spreading over ten years. Since the funding and political situation changes over time, the package phasing and delivery plan is also expected to evolve, which is why only the first phase of works should be considered fixed and only RBC is required by the DfT to sign up to full partnership status.

5.2. In order to maximise the potential to secure funding for important transport infrastructure improvements in Hampshire, it is considered that Programme Partner status should be signed up to. However, it is important that the County Council's level of involvement is kept under review, to ensure that the direction of the TIF package remains consistent with the County Council's wider aims and objectives.

6. Recommendations

6.1. That Hampshire County Council sign up to partnership status as a Programme Partner for the Reading Transport Innovation Fund Project.

6.2. That the County Council participates in the existing Steering Group and continues to do so when it becomes the `Joint Transport Innovation Fund Investment Programme Board'.

6.3. That the County Council's involvement in the Reading Transport Innovation Fund process be kept under review.

2195Rpt/1022/KT

CORPORATE OR LEGAL INFORMATION:

Links to the Corporate Strategy

IMPACT ASSESSMENTS:

1. Equalities Impact Assessment:

1.1. No impact identified.

2. Impact on Crime and Disorder:

2.1. No impact identified.

3. Climate Change:

a) How does what is being proposed impact on our carbon footprint / energy consumption?

The package of measures being developed by Reading Borough Council should have a beneficial impact upon our carbon footprint and energy consumption, and hence support from Hampshire County Council will help to achieve this. The package promotes alternatives to travel by car and includes a range of behavioural change incentives.

b) How does what is being proposed consider the need to adapt to climate change, and be resilient to its longer term impacts?

The package of measures being developed by Reading Borough Council is consistent with the need to adapt to climate change. The proposal to introduce a Low Emissions Zone for the Reading Borough Area, in particular, will help to reduce the impact of emissions on the environment and the complete package of measures will provide help to mitigate the impact of climate change.

READING TRAVEL TO WORK AREA TIF PROJECT

DRAFT TEXT - LOCAL AUTHORITY CROSS-BOUNDARY STEERING GROUP PARTNERSHIP AGREEMENT

FULL PARTNER

1 This authority agrees to participate in the Reading Travel to Work Area Transport Innovation Fund (TIF) bidding process because it is recognised that:

i. congestion in the Reading Urban Area is a problem that must be addressed on a regional level through a package of transport measures if the area is to remain an attractive place to live, work and invest,

ii. TIF offers the best opportunity to fund significant levels of new transport infrastructure and services throughout the area to offer real alternatives to driving into or through Reading, and

iii. the issues surrounding transport infrastructure in the Reading Travel-to-Work Area and particularly in those areas which adjoin Reading are best addressed in collaboration.

2 As a Full Partner collaborating with Reading and other partner authorities to explore the feasibility of schemes that can be implemented through TIF, this authority is willing to participate in joint planning and delivery of agreed schemes and fully supports the submission of a bid for Programme Entry for Phase 1 of the Reading Travel to Work Area TIF Package including a Low Emission Zone for central Reading.

3 A Full Partner is an authority where the proposed local road user pricing scheme includes some or all of their administrative area (Full Voting Status).

4 This authority further supports a joint application to the Department of Transport for TIF Partnership Status for later phases of the Reading Travel to Work Area TIF Package as set out in the draft Business Case documentation submitted to the Department by Reading Borough Council. It is noted that:

i. TIF Partnership Status with the Department for Transport is an optional stage in the TIF process intended to enable closer working between the Department and local authorities developing proposals for applications under the congestion element of the Transport Innovation Fund,

ii. it is not a pre-condition for subsequent Programme Entry, and

iii. no legal partnership or other legal relationship is intended or will be created.

5 It is acknowledged that if this partnership is established the Department for Transport will set out in a TIF Partnership Protocol:

i. an agreed timetable for the development of the Reading Travel to Work Area TIF Package business case,

ii. agreement on the part of both the partnership and the Department to providing necessary information to specified timescales,

iii. recognition that partnership in the Reading Travel to Work Area bid is flexible in three main ways:-

_ The prioritisation and programming of measures to be funded by the bid can change,

_ any proposed charging scheme boundary can change (with the agreement of the DfT) from the initial proposition contained in the draft Reading Travel To Work Area TIF Package bid documentation,

_ partners can increase their involvement in the scheme and the funding they can expect from the bid at a later stage.

6 For the avoidance of doubt it is acknowledged that a Reading Travel To Work Area TIF Project Full Partner is a member of the Local Authority Cross Boundary Steering Group fully supporting all aspects of the draft Reading Travel To Work Area TIF Package where the proposed Local Road User Pricing scheme includes some or all of that authority's administrative area. A Full Partner has access to revenue and capital funding and influence on programming for all schemes, including major schemes, being progressed through TIF that bring benefits to their area.

Signed on behalf of

COUNCIL

EXECUTIVE MEMBER FOR ENVIRONMENT (LEAD MEMBER FOR TRANSPORT)

READING TRAVEL TO WORK AREA TIF PROJECT

DRAFT TEXT - LOCAL AUTHORITY CROSS-BOUNDARY STEERING GROUP PARTNERSHIP AGREEMENT

PROGRAMME PARTNER

THIS IS THE RECOMMENDED OPTION FOR HAMPSHIRE COUNTY COUNCIL

1 This authority agrees to participate in the Reading Travel to Work Area Transport Innovation Fund (TIF) bidding process because it is recognised that:

i. congestion in the Reading Urban Area is a problem that must be addressed on a regional level through a package of transport measures if the area is to remain an attractive place to live, work and invest,

ii. TIF offers the best opportunity to fund significant levels of new transport infrastructure and services throughout the area to offer real alternatives to driving into or through Reading, and

iii. the issues surrounding transport infrastructure in the Reading Travel-to-Work Area and particularly in those areas which adjoin Reading are best addressed in collaboration.

2 As a Programme Partner collaborating with Reading and other partner authorities to explore the feasibility of schemes that can be implemented through TIF this authority is willing to participate in joint planning and delivery of agreed schemes and fully supports the submission of a bid for Programme Entry for Phase 1 of the Reading Travel to Work Area TIF Package including a Low Emission Zone for central Reading.

3 A Programme Partner is an authority committed to the DfT funding agreement and thus having access to project funding (Full Voting Status).

4 This authority further supports a joint application to the Department of Transport for TIF Partnership Status for later phases of the Reading Travel to Work Area TIF Package as set out in the draft Business Case documentation submitted to the Department by Reading Borough Council. It is noted that:

i. TIF Partnership Status with the Department for Transport is an optional stage in the TIF process intended to enable closer working between the Department and local authorities developing proposals for applications under the congestion element of the Transport Innovation Fund,

ii. it is not a pre-condition for subsequent Programme Entry, and

iii. no legal partnership or other legal relationship is intended or will be created.

5 It is acknowledged that if this partnership is established the Department for Transport will set out in a TIF Partnership Protocol:

i. an agreed timetable for the development of the Reading Travel to Work Area TIF Package business case,

ii. agreement on the part of both the partnership and the Department to providing necessary information to specified timescales,

iii. recognition that partnership in the Reading Travel to Work Area bid is flexible in three main ways:-

_ the prioritisation and programming of measures to be funded by the bid can change,

_ any proposed charging scheme boundary can change (with the agreement of the DfT) from the initial proposition contained in the draft Reading Travel To Work Area TIF Package bid documentation,

_ partners can increase their involvement in the scheme and the funding they can expect from the bid at a later stage.

6 For the avoidance of doubt it is acknowledged that a Reading Travel To Work Area TIF Project Programme Partner is a member of the Local Authority Cross Boundary Steering Group supporting the draft Reading Travel To Work Area TIF Package but not committing to the introduction of charging in their administrative area. A Programme Partner has access to capital funding and influence on programming for all schemes, including major schemes, being progressed through TIF that bring benefits to their authority's area. The right to increase involvement to Full Partner status or to revert to Infrastructure Delivery Partner status at any time is retained.

Signed on behalf of

COUNCIL

EXECUTIVE MEMBER FOR ENVIRONMENT (LEAD MEMBER FOR TRANSPORT)

READING TRAVEL TO WORK AREA TIF PROJECT

DRAFT TEXT - LOCAL AUTHORITY CROSS-BOUNDARY STEERING GROUP PARTNERSHIP AGREEMENT

INFRASTRUCTURE DELIVERY PARTNER

1 This authority agrees to participate in the Reading Travel to Work Area Transport Innovation Fund (TIF) bidding process because it is recognised that:

i. congestion in the Reading Urban Area is a problem that must be addressed on a regional level through a package of transport measures if the area is to remain an attractive place to live, work and invest,

ii. TIF offers the best opportunity to fund significant levels of new transport infrastructure and services throughout the area to offer real alternatives to driving into or through Reading, and

iii. the issues surrounding transport infrastructure in the Reading Travel-to-Work Area and particularly in those areas which adjoin Reading are best addressed in collaboration.

2 As an Infrastructure Delivery Partner collaborating with Reading and other partner authorities to explore the feasibility of schemes that can be implemented through TIF this authority is willing to participate in joint planning and delivery of agreed schemes and supports the submission of a bid for Programme Entry for Phase 1 of the Reading Travel to Work Area TIF Package including a Low Emission Zone for central Reading.

3 An Infrastructure Delivery Partner is an authority with no access to funding but benefiting from and assisting with cross-boundary initiatives (Observer Status).

4 This authority further supports a joint application to the Department of Transport for TIF Partnership Status for later phases of the Reading Travel to Work Area TIF Package as set out in the draft Business Case documentation submitted to the Department by Reading Borough Council. It is noted that:

i. TIF Partnership Status with the Department for Transport is an optional stage in the TIF process intended to enable closer working between the Department and local authorities developing proposals for applications under the congestion element of the Transport Innovation Fund,

ii. it is not a pre-condition for subsequent Programme Entry, and

iii. no legal partnership or other legal relationship is intended or will be created.

5 It is acknowledged that if this partnership is established the Department for Transport will set out in a TIF Partnership Protocol:

i. an agreed timetable for the development of the Reading Travel to Work Area TIF Package business case,

ii. agreement on the part of both the partnership and the Department to providing necessary information to specified timescales,

iii. recognition that partnership in the Reading Travel to Work Area bid is flexible in three main ways:-

_ The prioritisation and programming of measures to be funded by the bid can change,

_ any proposed charging scheme boundary can change (with the agreement of the DfT) from the initial proposition contained in the draft Reading Travel To Work Area TIF Package bid documentation,

_ partners can increase their involvement in the scheme and the funding they can expect from the bid at a later stage.

6 For the avoidance of doubt it is acknowledged that a Reading Travel To Work Area TIF Project Infrastructure Delivery Partner is a member of the Local Authority Cross Boundary Steering Group with no direct access to scheme funding or programming but having delivery status for schemes being progressed through TIF THAT bring benefits to their authority's area. The right to increase involvement to either Programme Partner or Full Partner status at any time is retained.

Signed on behalf of

COUNCIL

EXECUTIVE MEMBER FOR ENVIRONMENT (LEAD MEMBER FOR TRANSPORT)