Select Committee on Transport Twelfth Report


1  Introduction

1. Local transport is one of the most commonly used services provided by councils. As soon as we emerge from a front door we are using local transport facilities. Local authorities are responsible, at least in part, for provision and maintenance of pavements and local roads, traffic signals and signs, pedestrian crossings, car parking, cycle lanes, transport interchanges, local air quality, road safety, light rail, park and ride facilities and bus services.[1]

2. The Government's programme of reform of public services has meant changes to funding and strategic planning in many policy areas and transport is no exception. In 2000 the Government devised a new framework for transport planning by local authorities called the Local Transport Plan (LTP). Introduced through the Transport Act 2000, the framework requires most local authorities to produce LTPs every five years.[2] The first Plans were submitted for the period 2001-02 to 2005-06; the second round for the period 2006-07 to 2010-11. A separate local planning and funding system, the Local Implementation Plan (LIP), exists in London.[3]

3. It is anticipated that local transport planning and funding will be affected by three major pieces of work due to be published during 2006:

  • the report of the Lyons Inquiry into local government functions and finance;[4]
  • the Department of Communities and Local Government is expected to produce a White Paper on the functions and role of local government, which may consider City-Regions;[5] and
  • the Eddington Review is considering the long-term impact of transport decisions on the UK's productivity, stability and growth and may influence government policy and spending decisions.[6]

4. With the first round of the Local Transport Plans now complete, the Committee decided to examine the effects of the new planning and funding framework and the progress that has been made in delivering transport improvements. We set out the following terms of reference for the inquiry:

Local transport funding

  • Have the local transport capital settlements met what was expected and allowed delivery of the planned projects? What have been the impacts on major transport schemes, and smaller schemes? Have the full allocations been spent as planned? How have cost increases been settled?
  • Is the formulaic funding approach the most suitable method for allocating transport investment? What has been the impact of the performance-related component?
  • Do local authorities have adequate powers to raise resources to fund local transport infrastructure? What other powers could be useful?
  • Has the balance between revenue funding and capital funding for transport proposals been appropriate? How well have the different funding streams from the Department for Transport and the Office of the Deputy Prime Minister supported local transport projects? Are transport services successful in securing sufficient revenue funding?
  • How efficient is the bidding and scheme preparation stage? What could be done to avoid local authorities wasting significant resources on preparing and designing transport schemes which do not get approval?

Local transport planning

  • Were the administrative process and timetable for delivering Local Transport Plans appropriate? How helpful was the guidance from the Department for Transport? How did the second round of Local Transport Plans learn from the first, and how could the process be further improved?
  • How well have the Local Transport Plans delivered better access to jobs and services, improved public transport, and reduced problems of congestion, pollution and safety? To what extent has the Government's Transport Strategy fed into the second round Local Transport Plans?
  • How effective is the Local Transport Plan performance management regime? Do the Annual Progress Reports give the necessary transparency and rigour in assessing performance?
  • How successful is the balance between infrastructure projects and travel planning initiatives?

We are grateful to all those who submitted written and oral evidence to this inquiry[7] and to our Specialist Advisers: Maureen Wellen, CIPFA, and Francis Terry.


1   In metropolitan areas, Passenger Transport Executives share some of these responsibilities with local authorities.  Back

2   The requirement to develop Plans applies to county councils, unitary authorities, passenger transport authorities and metropolitan district councils jointly in each former metropolitan county. Councils classified as 'excellent' by the Comprehensive Performance Assessment are not required to produce Plans. Back

3   See Chapter 2 for more details. Back

4   Sir Michael Lyons was commissioned in July 2004 by the Chancellor and Deputy Prime Minister to consider the case for changes to local government funding in England and to make recommendations for any necessary changes. The remit was extended in September 2005 to cover the role and function of local government, with particular reference to the strategic role of local government, the role of devolution and decentralisation and the management of pressures on local services. He will make final recommendations to Ministers in December 2006. Back

5   Local Government Association (2006) Improving local transport: how small reforms could make a big difference, page 23 Back

6   Oral evidence from Sir Rod Eddington, Government Specialist Transport Adviser, 30 November 2005 HC 737-i, Q3 Back

7   Listed at the end of this Report Back


 
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Prepared 29 October 2006