Realistic Investment Expectations
Since the preparation of the Provisional LTP2, there have been some significant changes in respect of future investment expectations and we have refined our Final LTP2 accordingly. It still takes a realistic view of future funding, but the uncertainty currently surrounding TIF related funding, pending the outcome of our initial work, means that a programme in excess of the regional guidelines is currently proposed. However, we recognise this may need amendment in the future.
Regional Capital Guidelines
The publication of Regional Funding Allocations for investment in transport, housing and economic development to 2016 has established a clear basis for LTP Major Scheme programmes. We now have a clear basis for forward planning and our Major Scheme programme has been refined to reflect this. The submission date of the formal regional advice and the LTP2 approval timescale means that it not been possible to fully reflect the advice in this LTP2.
The level of funding identified, starting at some £88 million is far short of the level identified as being necessary by WMAMMS and means that not all Schemes identified in the Provisional LTP2 can proceed.
Transport Innovation Fund (TIF)
An additional potential source of funding for schemes that support measures to reduce congestion is TIF. Securing funding from this source would mean that a greater range of improvements could be made to the transport infrastructure of the Area. However, this funding is only to be made available to those authorities that have put in place effective demand management measures.
Further guidance is awaited on TIF funding that may be available for regional schemes that enhance national productivity. This could, for example, support the redevelopment of New Street Station, given its strategic location at the hub of the national rail network. The use of TIF funding for Metro development will also be explored.
We would need to access TIF funding, in addition to the funding potentially available to the region, to fund the programme of investment we believe is needed.
WMAMMS
The principal recommendation of WMAMMS was that more needed to be done at a faster pace. The Secretary of State recognised this in his pledge in July 2003 of up to £1 billion funding for Major Schemes in the period to 2011, subject to certain conditions. The announcement came too late to be reflected in our 2003 LTP response to WMAMMS. The programme set out in the Provisional LTP2 reflected this. We believe that LTP2 sets out a costed programme that meets the conditions set out for the release of the £1 billion and look forward to working with the Government to carry forward the enhancement of transport infrastructure as identified by the Secretary of State.
Integrated Transport
The programmes for Integrated Transport schemes (costing less than £5 million) and Maintenance have been prepared acknowledging the LTP2 Planning Guideline figures given in December 2005 and the settlement for 2006/07.
We need resources above these levels to respond adequately to the immediate challenges facing the Area. These resources will be necessary if we are to ensure that the country’s largest urban area outside London, and major contributor to the national economy, can function properly. At current levels, the expectation must be that we may be unable to increase the pace of change.
Additional Funding
Recognising the problems that current transport funding levels could bring, sources of alternative funding are sought. In addition to work at individual authority level the Principal Engineers Group (a Metropolitan Area-wide body) has been set revised Terms of Reference to include sharing good practice and experience in respect of securing additional funding and identifying funding opportunities. This includes bidding for specific Government funds, for example for the Inner City Road Safety Demonstration Project which secured £6 million additional funding for Birmingham and the £1.28 million secured by Sandwell for the Neighbourhood Road Safety Initiative project. Currently, funding is being sought to support our proposed Community TravelWise Initiative from Government, areas linked to social exclusion work rather than transport.
A further example is that as part of our Accessibility Strategy a 'Resource Audit' of the funding available from partners and other sources is proposed, to integrate and increase the funding available for this work.
This of course is in addition to securing funding from development proposals when appropriate (Section 106 funding) or funding in kind such as land.
Evidence
Coventry City Council has secured Section 106 funding for new local bus services, including commitments of £1.5 million from Tesco Arena, £1.5 million for the Prologis Business Park and £780,000 annually for ten years from Walsgrave Hospital. The Council has actively worked with these developers and the local bus companies to devise and develops new route structures. These funds are enabling some two thirds of a new circular bus route connecting outer estates and job opportunities to be provided with no public funding. The first stage of the implementation of these commitments led to a 10% increase of bus route mileage in the City when Phase 1 was introduced in November 2004.
