3.1 Financial Background

3.1.1 Programme Development

Maintenance funding has been allocated through a formula based on the condition of roads and bridges for some years. It is proposed that the integrated transport block will be formula-based and this is likely to be phased in over the period of LTP2. This programme is based upon the DfT planning guidelines for transport capital.

Analysis of congestion has shown that to achieve a reduction in congestion we will require progress on a number of alternatives to car travel as well as some highway infrastructure improvements to relieve the most severe problems. Highway improvement will be taken forward where a severe problem with a junction or link has an impact on the efficiency of the wider network and where the relief of that bottleneck can be accommodated within the corridor or local network.

Only in cases that fit the criteria above will it be cost effective to try to relieve congestion through highway improvements. For most of the network the solutions will lie in greater use of alternative modes or more efficient use of vehicles, such as greater occupancy levels or travelling at alternative times.

The development of the County Council’s delivery strategies has indicated a requirement for funding above the level of indicative allocations. A scheme appraisal process has been developed to assess schemes for their contribution to the LTP objectives and to ensure that the schemes that give the best value for money are implemented. If additional funding is available, this will be allocated to the next highest scoring schemes.

The programme has been developed using three different funding scenarios;

• forecast LTP allocation plus external funding
• forecast LTP allocation plus 10% plus external funding
• forecast LTP allocation plus 25% plus external funding.

3.1.2 Planning Guideline Funding

In December 2005, DfT provided provisional planning guideline figures for the levels of capital block funding for integrated transport and maintenance from 2006/07 to 2010/11. These were issued to enable local authorities to plan their LTPs and programmes with a realistic view of the likely resources available. Maintenance allocation figures are based on indicative levels, but as the allocations are calculated using a formula based on road and bridge conditions, these may change significantly. (See Table 3.1.2a).

Table 3.1.2a Indicative Allocations for Lancashire

	Provisional Allocation £ million
	2006/07	2007/08	2008/09	2009/10	2010/11
Integrated Transport	12.879	11.613	12.682	13.829	15.059
Maintenance	14.332	13.451	14.123	14.83	15.571

The allocation for 2006/07 was 12.5% above the guideline figure, as extra resources were allocated in recognition of the rating of Lancashire's Annual Progress Report on LTP1 as excellent.

Table 3.1.2a shows the indicative allocations for Lancashire for the period based on the proposed new formula system. The County Council is rated as a four star authority under the Comprehensive Performance Assessment and is guaranteed to receive 100% of these figures, subject to maintaining excellent status. Subject to DfT’s assessment of this LTP and the 2004/05 Annual Progress Report, an increase of up to 25% in planning guideline funding for integrated transport may be awarded. Provisional programmes have been developed for potential increased allocations of 10% and 25% and are included in Tables 3.3.1b-e.

For this Local Transport Plan, it is proposed that  resources are allocated under five broad headings. Within these categories all schemes will be subject to appraisal of their contribution to the LTP and corporate objectives. The five categories and the provisional allocations are shown in Table 3.1.2b.

Table3.1.2b

	Forecast Allocation  £ million
	2006/07	2007/08	2008/09	2009/10	2010/11
Bus and Rail Improvements	3.640	3.640	3.823	4.014	4.215
Accessibility, Information & Travel Planning	1.875	1.875	1.969	2.068	2.172
Highway Management	3.640	3.640	3.823	4.014	4.215
Active Travel	1.875	1.875	1.969	2.068	2.172
Maintenance	14.332	13.451	14.123	14.83	15.571

The proposed schemes under each category are listed below. It is important that our programmes make the greatest possible contribution to the priorities of  LTP2. Other appropriate schemes may be added where these meet the plan objectives. Multi-modal schemes will access funding from more than one category.

Bus and Rail Improvements

• Quality Bus schemes
• Bus priority
• Interchanges
• Community Transport
• Demand responsive services
• Major scheme preparation
• Community Rail
• Rail freight
• Alternative fuels

Accessibility, Information & Travel Planning

• Accessibility projects
• Information and marketing
• Real time public transport information
• Ticketing
• Smartcards
• School Travel Plans
• Workplace Travel Plans
• Personalised Travel Planning
• Car clubs
• Car sharing
• Road Safety programme development

Highway Management

• Major scheme preparation
• Highway schemes
• Traffic Management
• Access restrictions
• Local Safety Schemes
• Junction improvements
• UTMC (Urban Traffic Management and Control)
• Street lighting (energy saving)
• Parking management
• Freight schemes
• Air quality monitoring

Active Travel

• Walking
• Cycling
• Public Rights of Way
• Bridleways
• Streetscapes and urban design
• Street lighting (crime reduction)
• Quiet Roads and Greenways
• 20 mph zones
• Home Zones

Highway Maintenance

• Carriageway maintenance
• Footway maintenance
• Bridge maintenance
• Retaining wall maintenance
• Bridge assessment and strengthening
• Retaining wall assessment and strengthening
• Street lighting

3.1.3 Revenue Programme

The revenue consequences of proposals will be important in developing transport schemes as we seek to deliver Gershon targets for efficiency savings. Revenue programmes will be examined to make sure they are delivering value for money as detailed local proposals are prepared, and the whole life costs of investment in new schemes will be considered.

The development of the Transport Asset Management Plan will provide an effective link between our capital investment and revenue spending. Capital projects will only proceed when the revenue implications have been considered. Major Interchanges, Quality Bus and Park & Ride schemes are significant in generating new revenue demands where manned operation is often necessary to provide the desired quality of service. Revenue implications form part of the scheme business case, and must be identified before schemes can be approved.

For example, the Capitol Centre Park & Ride site serving Preston was designed to be self-financing once established, and this position has been reached. New sites must be self-financing wherever possible, and this is likely to result from a mix of commuter and shopper parking able to support a frequent bus service throughout the day.

Lancashire allocates revenue resources to travel planning through its information and marketing budget. We will develop cost effective revenue measures to provide ongoing input to personalised travel planning once the initial investment impacts have been made. We will take advantage of e-Government options to establish an ongoing dialogue with local travellers and provide updated information.

New revenue streams will be actively developed through LTP2. For example the resources from on-street parking have delivered valuable additional resources in LTP1 and we will seek to expand this progamme. Commercial opportunities associated with new interchange facilities will be encouraged, to meet the ongoing operating costs. Table 3.1.3 sets out the key revenue expenditure on transport by Lancashire County Council, including areas of partnership working with our District Councils and neighbouring authorities.

Table 3.1.3

Transport Revenue Spending	£ million
Bus Services
Transport to education	17.457
Social Services transport	6.940
Bus service support	5.009
Real time systems	0.050
Information and marketing	0.266
Concessionary fares (Administered for 12 District Councils plus Blackpool and Blackburn with Darwen Councils) Estimated 06/07 level (05/06 level £7.6 million)	14.000
Maintenance
Highway maintenance	25.012
Street lighting maintenance and energy	10.201
Transport Planning
LTP consultation	0.032
Census and surveys	0.082
Parkwise Back Office	0.685
On and off street parking enforcement in partnership with 12 District Councils
Road Safety
Road Safety	0.496
Traffic Regulation Orders	0.061
School Crossing Patrols	1.529
Lancashire Partnership for Road Safety (Administered on behalf of Partnership with Lancashire Police Authority and Blackpool and Blackburn)	2.670

3.1.4 Transport Benefits from Wider Local Authority Revenue Programmes

There are many areas of revenue spending by the County and District Councils that will produce transport benefits through targeted and carefully planned implementation. The new Passenger Transport Unit has been established to procure all the transport services delivered by the County Council in the most effective way possible.

Other areas of revenue spending which can contribute to our transport objectives include programmes such as the Extended Schools Initiative, which is being developed to minimise the need to travel and to provide services more conveniently. Mobile services such as Meals on Wheels, Mobile Libraries and Library Link and are helping us take our services direct to the people of Lancashire.

We are pressing ahead with e-government and are making a wide range of services available over the Internet. The Online Reference Library provides free access from home and work to business information, local history sources and reference books. Mario – Maps And Related Information Online – is our innovative online mapping system that makes locating our services and reporting problems online much more convenient. Further details of these initiatives are included in section 9.4.

The Police, Community Support Officers and Community Safety Partnerships all play an important role in promoting personal security which can greatly affect people’s travel choices. A range of support groups including Neighbourhood and Street Wardens and Parkwise Parking Attendants now assist them to maintain safety on our streets. CCTV has been introduced to town centres, railway stations, bus stops and buses to give travellers further confidence.

Capital investment in our highways has an impact on the County Council’s revenue budgets. Keeping footways in good repair is especially important and is being given priority in our maintenance programme to minimise the number of claims for personal injury accidents.

District Councils are responsible for local planning services and have a major role in regeneration, economic development and tourism promotion. Close liaison with the District Councils will ensure that their investment is coordinated with local transport investment to deliver added value. In many areas, District Council’s leisure services are taking a growing role in promoting active travel and our Personalised Travel Planning programme is being coordinated with local health promotion.

3.1.5 Transport Innovation Fund (TIF)

The County Council is working closely with Preston City Council over the redevelopment and regeneration of the city centre. There are ambitious plans for major retail expansion and other uses in the Tithebarn area of the city centre as well as the increasing residential developments in the Winckley Square Conservation Area and elsewhere in the city centre. Preston aims to become the third city of the North West and, together with neighbouring South Ribble Borough Council, has other plans for regeneration to enhance the riverside areas of the city. The University of Central Lancashire is one of the fastest growing universities in the country and its campus continues to expand on the edge of the city centre.

It is essential that the transport infrastructure is capable of accommodating these ambitious developments and supports Preston’s vision as the third city of the North West and major focus of the emerging Central Lancashire City Region. It is also important to alleviate some of the impacts of traffic that are inhibiting economic activity on principal retail streets in the city centre.

Lancashire’s TIF proposals draw upon a draft Access Strategy for Preston City Centre which has been prepared jointly by Lancashire County Council and Preston City Council. This recognises that as the city grows in influence and potential, it is essential that all who wish to visit or pass through Preston can do so as easily as possible. The Strategy builds upon and supports existing work and included a broad transport strategy for Preston based around the vision of a total transport network. Considerable progress has been made towards delivering that vision during the period of the first LTP through developments in the city’s UTMC scheme and real time information systems for local bus services. At the same time, the City Council’s Local Plan and Development Control system contribute by reserving sites for long-term transport schemes and by ensuring that new developments are sustainable.

The Access Strategy defines its objectives as follows:

• To achieve the optimum level of access to Preston City Centre within the limits of available resources and technology;
• To take every opportunity provided by the ongoing development of the city centre to upgrade public transport facilities, including bus/rail integration;
• To further integrate land use and transport planning within the city centre and between the city centre and the surrounding area;
• To ensure that the city’s increasing transport advantages contribute to Preston’s ambition to become the North West region’s Third City; and
• To ensure that the environment in the city centre is safe and pleasant and conducive to the expansion of retail, commercial and leisure activity.

Lancashire County Council welcomes the opportunities opened up by the Transport Innovation Fund which represents a mechanism to enable delivery of this vision of sustainable and sustained economic growth.

Preston is typical of a small to medium sized city. It experiences problems of local peak hour congestion, albeit not as widespread as that often found in the major conurbations. The opportunity to bid to the TIF comes at a turning point in the development of the city. The proposed development in the Tithebarn Regeneration Area will represent a step-change in the economic capacity of Preston, delivering a substantial increase in the retail offer and related facilities. Great care has been taken to ensure that this development complements the city as a whole, nevertheless consultation with stakeholders has identified a range of issues relating to the residual areas of the city centre, which must be rectified if economic growth is to be maximised.

The TIF Vision for Preston is to maximise the economic and public realm potential of areas in proximity to the Tithebarn Regeneration development, so that the overall visitor experience in Preston is consistent with the objective of Preston becoming the third driver of the economy for the Northwest Region.

The proposed scheme would restrict non-essential vehicle access, whilst prioritising economically desirable access, thus freeing roadspace and providing better conditions for public transport and deliveries. Although further work is required before the County Council can endorse any specific proposal, the Scoping Study has recommended a solution which would involve access control enforced by rising bollards, most likely triggered by in-vehicle tags. Provisionally, tags could be made freely available to exempt classes of vehicle such as taxis and cars carrying disabled people. Priority groups would pay a modest annual fee to ensure that the scheme is self-financing, which would reflect the considerable enhancement in amenity to those working in the controlled zone. In many ways, the scheme reflects a much smaller version of one that operates successfully in central Rome.

The study will also investigate the integration of parking charges with access control in an innovative way that should offer considerable opportunity for cost effective measures. This approach is likely to be ideally suited for transfer to other cities. The foundations to move forward would be the development of a robust business case where risks, revenue and capital costs are clearly identified. Specific measures envisaged will include;

• controlled access to areas of the city
• prohibition of traffic through sensitive Conservation Areas
• improved on-street parking control which may include variable charges related to demand
• greatly improved pedestrian environment in the Fishergate area of the city to ensure that the whole city centre will benefit from the Tithebarn redevelopment
• significantly improved pedestrian opportunities across the city centre ring road (Ringway) to improve walking links to the university campus
• improved access across Ringway from residential areas to the north east of the city centre
• Bus Priority on all approaches to the central core to add value to a major new regional bus interchange as part of a public/private partnership with City Centre developers
• development of area wide Quality Bus partnership to deliver objectives of CIVITAS and TIF projects and to create a seamless network for the Preston city area
• development of a rail/bus interchange facility in conjunction with an anticipated private sector contribution
• improved cycle route linkages through the city centre.

The scope of the TIF bid has been assessed in a Scoping Study, which was commissioned as an element of the wider Preston Bus and Access Priority Study.

Lancashire County Council, in common with most other UK local authorities, has no current plans to develop a comprehensive road user charging scheme in advance of any national or regional road pricing scheme. What is proposed, however, is an innovative approach to access control which builds upon the success achieved in Durham, is informed by case studies from outside the UK, and which exploits the achievements of the County Council with UTMC and complements the CIVITAS II programmes.

The proposed project  would seek a solution that can be readily implemented within the economic context of a small to medium sized city. Solutions also need to offer transferability within the city, to cover radial routes as well as the city centre.

The demand management measures would be complemented by significant bus priority measures and other improvements to the local bus network. In CIVITAS, the County Council is working with Preston Bus to introduce a trial of hybrid vehicles and with all operators to introduce a common branding and identity for the bus network. It is also hoped to introduce network ticketing within the timescale of the TIF and CIVITAS projects. Lancashire’s bid for pump priming resources in 2006 was not successful but work on development of proposals is continuing to prepare a potential bid for future funding opportunities.

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