Home > Local Transport Plans > Provisional LTP July 2005 (version for comments) > Strategy Development
Effective Use of Revenue Budgets
<p id=“task_171_ID_1”><span style=“font-weight:bold;”></span> Revenue budgets are used to complement capital expenditure in order that our LTP2 can deliver the best possible results. Revenue programmes are derived from various sources including: </p>
<blockquote> <p id=“task_171_ID_2”><strong>(a) the Passenger Transport Authority’s revenue budget</strong></p> <p id=“task_171_ID_3”><strong>(b) Local Highway Authority revenue expenditure on highways</strong></p> </blockquote> <p id=“task_171_ID_59”><span style=“font-weight:bold;”></span> These are described in the following paragraphs: </p> <p id=“task_171_ID_60”><strong>(a) the Passenger Transport Authority’s revenue budget</strong></p> <p id=“task_171_ID_6”><span style=“font-weight:bold;”></span> The PTA’s revenue budget is administered by Centro. It is approximately 80% funded from a levy on the Metropolitan councils and is collected through Council Tax from residents. The Government provides the balance to support Centro-sponsored rail services. The need for VFM is well recognised, most recently in a Best Value Performance Review Plan for 2004/05. </p> <p id=“task_171_ID_8”><span style=“font-weight:bold;”></span> The PTA’s levy requirement for 2003/04 was approximately £120 million, allocated as follows: </p> <ul id=“task_171_ID_9”> <li>concessionary fares and ticketing - 44.0%</li> <li>bus services - 12.3%</li> <li>rail services - 18.0%</li> <li>customer services - 2.1%</li> <li>passenger information - 1.0%</li> <li>other services and administration - 22.5%</li> </ul> <p id=“task_171_ID_11”><strong>Concessionary Fares</strong></p> <p id=“task_171_ID_12”><span style=“font-weight:bold;”></span> Centro administers three concessionary fare schemes covering the following groups: </p> <ul id=“task_171_ID_13”> <li>people aged 60 or older</li> <li>people with specific disabilities</li> <li>children aged 5 to 15</li> </ul> <p id=“task_171_ID_14”><span style=“font-weight:bold;”></span> The schemes for elderly people and people with disabilities offer better arrangements than the National Concessionary Fares Schemes. Concessionary travel is available on rail, Metro and bus services, and after 23:00 until the end of scheduled services. Travel is also free (rather than half-price as under the national scheme) for people aged 65 and over, plus those who were 60 on or before 31st March 2003. The PTA has consulted with operators about introducing free travel for all eligible persons this year, ahead of the Government’s target of 1st April 2006. </p> <p id=“task_171_ID_15”><span style=“font-weight:bold;”></span> The scheme for children provides half-fare travel, where such a concession is not provided on a commercial basis, both for 5 to 15 year olds and those aged 16 to 18 who are in full-time education (defined as not less than 15 hours per week) and not in receipt of direct remuneration for their studies. </p> <p id=“task_171_ID_16”><span style=“font-weight:bold;”></span> Each scheme aims to provide social inclusion for specific groups and fits with the ‘improving accessibility’ theme of the Transport Shared Priority. By encouraging greater use of buses, their commercial viability is also indirectly supported for the benefit of our Area. </p> <p id=“task_171_ID_17”><strong>Bus Services</strong></p> <p id=“task_171_ID_18”><span style=“font-weight:bold;”></span> Centro provides support for local bus services that are not provided commercially but which are deemed socially necessary. Such services assist with LTP targets aimed at improving accessibility. Centro also procures a Ring & Ride, door-to-door service for people who find it difficult or impossible to access conventional transport services. </p> <div id=“task_171_ID_19” class=“statement”> <h3>Evidence </h3> <p id=“task_171_ID_20”><span style=“font-weight:bold;”></span> A total of 1.9 million trips were made on accessible transport in 2003/04. </p> <p id=“task_171_ID_21”><span style=“font-weight:bold;”></span> The number of registered users has risen by 18% from 2002/03 to 2003/04. </p> <p id=“task_171_ID_22”><span style=“font-weight:bold;”></span> Source: <em> WMPTA Best Value Performance Plan 2004/05</em></p> </div> <p id=“task_171_ID_23”><strong>Rail Services</strong></p> <p id=“task_171_ID_24”><span style=“font-weight:bold;”></span> Centro currently specifies the level of service provision through a franchise agreement with the Strategic Rail Authority and the National Express Group (as owner of Central Trains). Following enactment of the Railways Bill 2005, Centro will no longer have an automatic right to be a co-signatory to the franchise. The rail grant which Centro currently receives to cover the cost for the franchise and other relevant costs will no longer be available in the current form. The extent to which Centro will be able to influence rail service provision under the new arrangements has yet to be determined. Rail services, however, are an important part of the public transport network and an effective alternative to the car. </p> <div id=“task_171_ID_25” class=“statement”> <h3>Evidence </h3> <p id=“task_171_ID_26”><span style=“font-weight:bold;”></span> Centro is a party to a two year extension of the Central Trains franchise, delivering a number of benefits including punctuality, reliability and cleanliness, and setting obligations on the train operator to improve customer care and service quality. </p> <p id=“task_171_ID_27”><span style=“font-weight:bold;”></span> Source: <em> WMPTA Best Value Performance Plan 2004/05</em></p> </div> <p id=“task_171_ID_28”><strong>Customer Services</strong></p> <p id=“task_171_ID_29”><span style=“font-weight:bold;”></span> Customer Services covers Centro’s provision across all modes including information, concessionary fares, ticketing and initiatives which aim to influence travel behaviour, such as the Corporate Travel Scheme, TravelWise and Workwise. These initiatives provide information, on ticketing, Traveline telephone enquiries, customer relations, and safety and security. </p> <div id=“task_171_ID_30” class=“statement”> <h3>Evidence </h3> <p id=“task_171_ID_31”><span style=“font-weight:bold;”></span> WorkWise helps unemployed people get to interviews and new jobs by providing specialised journey planning advice and free tickets. It features in ‘Realising the Potential of our Regions, the story so far’, published by ODPM in February 2005, which says ‘<em>Value for money has been high at around £200 per accessed job’</em>. </p> <div id=“task_171_ID_32”> <p id=“task_171_ID_33”><span style=“font-weight:bold;”></span> The Corporate Travel Scheme enables employers to pay for annual season tickets for staff and to reclaim the cost through monthly deductions from payroll. Centro works with more than 100 businesses, selling more than 4,000 annual season tickets through the scheme. </p> </div> <p id=“task_171_ID_34”><span style=“font-weight:bold;”></span> The Traveline enquiry system handles 1.4 million calls per year. </p> <p id=“task_171_ID_35”><span style=“font-weight:bold;”></span> The Travel information Centre at West Bromwich bus station is part-funded by Centro. </p> <p id=“task_171_ID_36”><span style=“font-weight:bold;”></span> The disabled travel scheme provides 10,000 people with half-fare concessions. </p> <p id=“task_171_ID_37”><span style=“font-weight:bold;”></span> The take-up rate for the free travel scheme is 89%. </p> <p id=“task_171_ID_38”><span style=“font-weight:bold;”></span> Source: <em> WMPTA Best Value Performance Plan 2004/05</em></p> </div> <p id=“task_171_ID_39”><strong>Passenger Information</strong></p> <p id=“task_171_ID_40”><span style=“font-weight:bold;”></span> Centro’s passenger Information Strategy aims to achieve a step change in information provision, in partnership with operators. </p> <p id=“task_171_ID_41”><strong>Other services and administration</strong></p> <p id=“task_171_ID_42”><span style=“font-weight:bold;”></span> There are increased running costs associated with the implementation of the Capital Programme, debt charges and the current cost of pension liabilities. These costs cannot be ascribed to the Capital Programme but they are essential in supporting agreed policies and priorities. The PTA’s revenue budget also funds processes for generating new initiatives and innovation, particularly associated with the Capital Programme, and detailed monitoring and project management. </p> <p id=“task_171_ID_43”><span style=“font-weight:bold;”></span> Centro is continuing to develop its Performance Management and Project Management processes in order to adjust the Capital Programme and ensure the most efficient use of resources. </p> <div id=“task_171_ID_44” class=“statement”> <h3>Evidence </h3> <p id=“task_171_ID_45”><span style=“font-weight:bold;”></span> Regular monitoring of the revenue budget has allowed the Passenger Transport Authority to reallocate savings from expenditure on travel concessions. These savings have been used to lease extra rolling stock to ease congestion on key rail routes. </p> <p id=“task_171_ID_46”><span style=“font-weight:bold;”></span> Source: <em> WMPTA Best Value Performance Plan 2004/05</em></p> </div> <p id=“task_171_ID_47”><strong>(b) Local Highway Authority revenue expenditure on highways</strong></p> <p id=“task_171_ID_48”><span style=“font-weight:bold;”></span> We recognise that revenue expenditure on highways has an important role in achieving the regeneration of our Area. It is needed not only to maintain the physical condition of the highways and associated structures but also to ensure they function efficiently and contribute to the quality of the environment.. Our revenue expenditure on highways in 2003/04 amounted to almost £90 million. Almost three quarters of this was on the maintenance of roads and footpaths, bridge structures, traffic management and street lighting (including energy costs). It also covered a wide range of activities including school crossing patrols and winter maintenance. The ongoing revenue costs associated with new capital schemes also need to be recognised. </p> <p id=“task_171_ID_51”><strong>The PTA Best Value Review Programme</strong></p> <p id=“task_171_ID_52”><span style=“font-weight:bold;”></span> Centro is working closely with the PTA to apply Best Value principles across its functions, even though it is not covered by Best Value legislation. Funding comes from the revenue budget. Several Best Value Service Reviews have been completed, each producing a detailed Action Plan aimed at improving overall services. </p> <div id=“task_171_ID_53” class=“statement”> <h3>Evidence </h3> <p id=“task_171_ID_54”><span style=“font-weight:bold;”></span> <strong>Concessionary Fares</strong> – market research and consultation confirms that WMPTA’s approach to concessionary fares is appropriate and continues to enhance quality of life. Certain sections of the population appear to under-use concession fares and this is being addressed through an Action Plan. </p> <p id=“task_171_ID_55”><span style=“font-weight:bold;”></span> <strong>Access and Special Needs </strong>– a number of physical barriers to access have been identified and are being removed. </p> <p id=“task_171_ID_56”><span style=“font-weight:bold;”></span> <strong>Subsidised Bus Services</strong> – a review concluded that WMPTA / Centro compares favourably with others. New enhanced targets have been set. </p> <p id=“task_171_ID_57”><span style=“font-weight:bold;”></span> <strong>Personal Safety and Security on Public Transport </strong>– a review is being carried out in partnership with several other PTAs. Data, research methods and conclusions will be shared. </p> <p id=“task_171_ID_58”><span style=“font-weight:bold;”></span> Source: <em> WMPTA Best Value Performance Plan 2004/05</em></p> </div>