Home > Local Transport Plans > Provisional LTP July 2005 (version for comments) > Strategy Development
Value for Money (VFM)
<p id=“task_185_ID_1”><span style=“font-weight:bold;”></span> This section deals with how we obtain value for money (VFM) at both the strategic and detailed scheme levels. </p>
<p id=“task_185_ID_2”><span style=“font-weight:bold;”></span> At the strategic level, we have developed our programme to ensure a balance between VFM and delivering outcomes which support the Transport Shared Priority and LTP2 objectives. VFM principles have been applied to both capital and supporting or associated revenue funding. We have linked the outputs from these considerations with the overall Quality of Life objectives that are frequently identified in strategic and local partnership working. At the forefront is a significant programme to help people make ‘Smarter Choices’. </p> <p id=“task_185_ID_3”><span style=“font-weight:bold;”></span> At the detailed level of scheme design and implementation, we have a large pool of experience across the Metropolitan Area on which we draw to achieve value for money. This is explained in greater detail in Opportunities section (Analysis methodologies) and the following section (Achieving Value for Money). </p> <p id=“task_185_ID_4”><strong>Strategic Level</strong></p> <p id=“task_185_ID_5”><span style=“font-weight:bold;”></span> WMAMMS identified that influencing travel behaviour was the most cost-effective means of tackling an increasing number of trips. We have embarked on a range of initiatives to encourage modal transfer. These include building on our nationally recognised Company Travelwise scheme, enhancing central funding for school travel plan work from local resources<em>, </em>and developing communications to deliver positive news about the options available. </p> <p id=“task_185_ID_6”><span style=“font-weight:bold;”></span> Persuading people to make ‘Smarter Choices’ about short journeys, leading to more walking and cycling, is one example of strategic value for money. If a modal shift of 15% to more physically active travel was achieved, this would improve personal health and could save 50 premature deaths a year in our Area. Promoting more active modes of travel, together with better health, will help tackle the increasing obesity which costs the National Health Service some £500 million annually (‘Tackling Obesity in England’, National Audit Office, 2001). </p> <p id=“task_185_ID_7”><span style=“font-weight:bold;”></span> We will initially pursue two areas of activity. One is to build a better understanding of the travel network, in order to develop ‘informed travellers’. The second is to stimulate behaviour change amongst those for whom it is immediately feasible. </p> <p id=“task_185_ID_8”><span style=“font-weight:bold;”></span> We do, however, need to undertake other works. Firstly, we must obtain VFM by ‘making best use of the transport network’. Analysis has identified potential efficiency increases from measures such as Red Routes and enhanced Urban Traffic Control (UTC) which offer real VFM solutions. In the longer term, the increasing use of demand management measures will also contribute to making best use of the network. </p> <p id=“task_185_ID_9”><span style=“font-weight:bold;”></span> Secondly, significant modal transfer will only be achieved by ‘improving the public transport offer’, and making sure viable alternatives are seen to be in place. We are making sure that improvements to the public transport network are communicated so that people can make ‘Smarter Choices’. Work which intensifies the use of capital investment will improve VFM and enhance the value of our assets to the West Midlands. </p> <p id=“task_185_ID_10”><span style=“font-weight:bold;”></span> The third strand of our strategy, ‘targeted investment to support regeneration’, also delivers value for money. Our investment complements that of other public bodies. For example, the Major Scheme on Wolverhampton’s Wobaston Road supports Advantage West Midlands’ investment; and the Major Scheme on Birmingham’s Chester Road complements Jaguar’s investment in new manufacturing capacity. We want to ensure that public and private investment contribute efficiently to regeneration of the local and regional economy. </p> <p id=“task_185_ID_11”><span style=“font-weight:bold;”></span> Enhanced value for money is achieved from LTP funds by supplementing them with funds secured from non-LTP sources. These sources include section 106 agreements related to new developments and partnership agreements. </p> <div id=“task_185_ID_12” class=“statement”> <h3>Evidence </h3> <p id=“task_185_ID_17”><span style=“font-weight:bold;”></span> Examples of additional funds from non-LTP sources: </p> <ul id=“task_185_ID_18”> <li>A very significant example is the £35 million contribution to the Wednesbury – Brierley Hill Midland Metro Extension from Westfield, the new owners of the Merry Hill shopping centre </li> <li>A £6 million grant from DfT has been secured for the Birmingham Inner City Road Safety Demonstration Project. The grant covers the five year period from April 2003 to March 2008 </li> <li>The Bus Real Time Passenger Information project. From its inception it has been delivered and funded as a partnership. The project is a good example of delivering significant public and private investment. In partnership with Centro and MATTISSE, bus operator Travel West Midlands has, so far, invested in excess of £1 million in a project costing more than £4 million </li> <li>Bus shelter company Adshel have agreed to contribute £60-70 million over 10 years to Centro towards the Bus Strategy</li> </ul> </div>