Select Committee on Transport Twelfth Report


5  Transport across City-Regions

161. As was identified in the introduction to this report, transport planning and funding is shaped by wider policies on public service reform and the nature of the relationship between central, regional and local government. The recent debates about the proposed 'City-Regions' and the enhanced role of the Passenger Transport Authorities provide an illustration. The former Office of the Deputy Prime Minister (ODPM) defined City-Regions as "the enlarged territories from which core urban areas draw people for work and services."[276] As the ODPM's study of City-Regions concluded, districts are too small and regions too large to be considered ideal 'units' for strategic decision-making in key areas such as transport, economic development, planning and housing.[277] Transport infrastructure and services tend to operate over areas larger than any one local authority boundary. Given this, there is clearly some potential to operate transport strategies and services over larger areas, and more specifically over City-Regions.

162. City-Regions are often described as the 'travel to work area'.[278] We would urge the Government, and whichever agencies are involved in developing the idea of City-Regions, to recognise that journeys to work comprise only one-fifth of all journeys that are made.[279] Planning transport on a City-Regional basis which narrowly concentrates on journeys to work would potentially damage the accessibility of other journeys and the overall network. Transport planning for City-Regions should therefore include trips generated for shopping, education, health, leisure, entertainment, and business supply chains, for example.

Transport for London compared to the Passenger Transport Authorities

163. London is often portrayed as an example of successful regional governance. It must be acknowledged, however, that London has unique funding and governance structures in place. As Sir Michael Lyons said in his evidence: "it is the political leadership and the different regulatory framework in London that explains the difference in terms of the improvement in bus ridership in London compared with other parts of the country."[280] London now has a directly-elected executive mayor (with responsibility for transport, planning and development, economic development and regeneration, culture, and the environment). London has a powerful transport authority—Transport for London (TfL)—with control of London Underground, buses, taxis and private hire vehicles, major roads, and river services. Unlike the rest of England, TfL controls bus routes, service frequencies, quality and fares, and consequently it has managed to increase bus patronage by 38% over five years.[281] It has also been able to introduce the congestion charge.

164. TfL has several sources of funding, including access to the fare revenue from buses. Unlike any local authority in England, London also receives a direct grant from the Government to spend exclusively on transport improvements. This reliable source has enabled TfL to make extensive use of its prudential borrowing rights. As a result, the authority has access to significant funding: its five year investment programme amounts to £10 billion. Local transport improvements undertaken by London boroughs are funded from a (mainly) capital budget which has grown by over 60% since 2001 and now regularly exceeds £150 million per year.[282]

165. In comparison to TfL, the Passenger Transport Authorities (PTAs) and their delivery agents, the Passenger Transport Executives have much diminished powers over transport. The Passenger Transport Authorities must apply to central Government for funding for Major Schemes such as light rail projects; they do not have direct control of bus and rail services, although they can offer subsidies to secure particular services; and they do not have control of highways or taxi licensing, as this rests with the district councils.

166. The Passenger Transport Authorities and Executives gave many examples of how they are currently restricted in what they can achieve within the current structure of governance and funding. They pointed in particular to the lack of control over rail networks, bus services, and highways powers such as bus priority lanes; dependence on central Government decisions on funding for major projects such as light rail; and lack of direct funding. As the Passenger Transport Executives' Group put it: "The implementation of LTP1 tram schemes in Leeds, Greater Manchester and Merseyside have all been adversely affected by the varying views taken by Government. This has led to delay, major spending ahead of commitment and poor value for money [...]"[283]

167. Several witnesses identified the problems that arise because PTAs have little influence over rail networks.[284] The Passenger Transport Executives' Group stated: "The development of a typical bus/rail interchange on Network Rail land can take years—a bus/rail interchange in Leeds took eight years to develop, but only eight months to build."[285] Merseytravel gave a further example of a scheme to improve freight access to the Port of Liverpool which is relying on "a funding cocktail" that "adds to the complexity and extends the timescales".[286] The lack of direct control over these transport policies results in extensive and therefore expensive liaison with local authorities, central government and other partners.[287] It is clear that the current structures are hindering metropolitan areas outside London in their efforts to improve local transport.

STRENGTHENING PASSENGER TRANSPORT AUTHORITIES

168. The Local Government Association commissioned a study to examine ways in which the governance and funding of transport could be reformed in the context of debates about the future of local government, transport, City-Regions and funding.[288] The Report recommended that some of the successful aspects of Transport for London should be transferred to other cities and that this might best be achieved through strengthening the PTAs in metropolitan areas."[289] There could be significant advantages to giving increased powers to PTAs in order that they could better control transport improvements in their areas. For example, the new Authorities might be able to introduce bus franchising, and take greater control over local urban rail networks. They might also be given powers such as the ability to set a council tax precept, and control over economic development and transport-related planning.

169. Any such transfer of powers would, however, require a parallel increase in the degree of accountability required of PTAs. It must be evident that the PTAs have the capability to deliver improvements and that the decisions taken by PTAs are in the interests of the community. It has been suggested that the legitimacy and authority of PTAs could be strengthened by having the most senior members of a council appointed to the PTA, or a board consisting of district leaders—following a similar model to that of the Transport for London board.[290]

Responses to City-Regions model

170. The evidence we received during the course of our inquiry indicated a mixed reception to the idea of City-Regions. Some witnesses thought that the idea was not particularly radical since City-Regions would merely formalise what already happens in decision-making within the context of Regional Spatial Strategies, Regional Funding Allocations and through the Government Offices for the Regions.[291] Some local authorities argued that the City-Region model should apply not only to metropolitan areas, but also to county council areas. Mr Page, of the LGA, identified potential advantages:

The way of overcoming the present ridiculous local authority boundaries that we have which militate against effective transport planning would be to create a wider PTA-equivalent area, and that could be created in shire counties as well as city regions. That would require authorities to cede power up to a higher level. Personally I do not have a problem with that.[292]

171. It was the PTEs, however, that seemed most strongly in favour of developing the City-Region model. For example, Mr Tom Magrath, of West Midlands Passenger Transport Executive, Centro, told us: "We are looking at a City-Region and the possibility of a transport authority representing that might be one of the outcomes of that, but this is all thought and work in progress at the moment".[293] Mr Scales, of Merseytravel, pointed to the success of Transport for London and suggested that City-Regions would help the PTEs achieve something similar.[294]

172. Many local authorities, however, were cautious about welcoming the City-Region model. There was a general willingness to work together to achieve outcomes that benefited the City-Region, but there was less support for the notion of new tiers of government. Mr Newton, of the Association of Greater Manchester Authorities told us that he would like to see a 'federalist approach' "where the authorities work together but with more devolved powers in order to enable them to implement particularly transport improvements".[295] The complexity of the existing clutter of structures within the Northern Way 'super region' was identified and the difficulties of adding another tier of institutions were noted.[296]

173. Many of the local authorities that gave evidence were averse to the notion of relinquishing any of their powers to other organisations and particularly those that are not directly-elected.[297] As Ms Quant, of Hampshire County Council, said: "[…] only accountable authorities should have spending abilities and powers and if there is to be a City-Region there needs to be a form of local government that matches it".[298] This view was endorsed by Councillor Sparks, of the LGA:

The Local Government Association […] would genuinely be interested in looking at any mechanism that encouraged the development of transport in our local areas but it […] would have to include local democracy. It would have to involve local councils. We would not be in favour of […] unelected bodies taking powers away from local government.[299]

The report commissioned by LGA suggested that the reluctance of metropolitan districts to hand over their powers could be overcome by giving local authorities a power of veto.[300]

Voluntary collaboration

174. Local authorities preferred to see a federalist approach of local authorities working together, rather than a formal introduction of a new structure of government. Indeed, the academics that have advanced the potential benefits of City-Regions are also disinclined to recommend a national reorganisation of local government.[301] Sir Michael Lyons pointed to the disadvantages of formal restructuring:

All of my experience tells me that reorganisation is a pretty wasteful exercise. It is not to say that you might not feel that sometimes you need to embark upon it, but if it can be avoided so much the better. I come down very strongly […] in favour of encouraging people to do things voluntarily by working together where they need to go outside their boundaries.[302]

Later in his evidence he warned against adopting another tier of elected government: "I am a bit wary about the idea of introducing new electoral arrangements for City-Regions, especially whilst we have such a woolly idea of what a City-Region is."[303]

175. Although a collaborative approach was favoured by local authorities, there is little indication that voluntary arrangements of this sort will be effective. On the contrary, the Atkins review of Local Transport Plan delivery found that metropolitan areas with joint plans have struggled to deliver the improvements required because of: "Difficulties in delivering large complex programmes across a number of metropolitan highway authorities, sometimes with differing political control, and the need to co-ordinate activities with Passenger Transport Executives."[304] We are therefore doubtful that collaborative arrangements, without specific sources of funding and direct planning and regulatory powers, will achieve the necessary results.

176. Whether a voluntary or a mandatory approach to City-Regions is adopted, care must be taken to ensure that the transport needs of smaller towns and more mixed areas are not neglected in the rush to prioritise the economic importance of cities. The Minister reassured us that the Department for Transport would be alive to these dangers: "If those sorts of pressures become an issue, clearly that is something that we shall have to look at and we shall have to adapt the way we distribute our money and the way our formulas work to take appropriate cognisance of it."[305]

177. If Passenger Transport Authorities are to be capable of making significant improvements to transport services in major metropolitan areas, they will require enhanced powers over the transport system. Such powers must be accompanied by increased levels of accountability. We recommend that the Government explore the possibility of giving Passenger Transport Authorities such extended powers, funding and democratic accountability. In the interests of moving forward the debate, we recommend that one or two pilots of strengthened Passenger Transport Authorities are trialled over a City-Regional scale.

178. We welcome the Minister's acknowledgement that if City-Regions are adopted, attention must be given to monitoring resources available to towns and mixed areas to ensure the transport needs of these areas are not neglected.


276   ODPM 'A Framework for City-Regions' 2006, page 5 Back

277   Ibid Back

278   Q27 Back

279   Ev 189 Back

280   Q422 Back

281   Over the last five years bus passenger numbers have increased by 38% (TfL evidence to 'Bus Service Across the UK' Report Session 2005-06 HC1317) Back

282   Ev 31 Back

283   Ev 1 Back

284   Ev 171, 179, 1, 205 Back

285   Ev 1 Back

286   Ev 8 Back

287   Q42 Back

288   The remit of the study was: "explicitly to build upon existing institutions and mechanisms with a view to allowing the greatest amount of reform with the minimum of reorganisation and upheaval." Foreword to report, Improving Local Transport: how small reforms could make a big difference, 2006, Tony Travers and Stephen Glaister Back

289   LGA (2006) 'Improving Local Transport: how small reforms could make a big difference' Page 13 Back

290   Ibid Back

291   Qq 94, 217; Indeed, as part of the 2004 Spending Review, the Government announced that it would be examining new ways to integrate transport, economic and spatial development strategies in each of the English regions, and in January 2006 the regions submitted their advice to Government on the Regional Funding Allocations. The Government announced its conclusions on the Regional Funding Allocations in July 2006. See http://www.dft.gov.uk/stellent/groups/dft_localtrans/documents/divisionhomepage/611979.hcsp  Back

292   Q92 Back

293   Qq 27-28  Back

294   Q50 Back

295   Q216 Back

296   Q358 Back

297   Qq 216-218, 93-94 Back

298   Q216 Back

299   Q93 Back

300   LGA (2006) 'Improving Local Transport: how small reforms could make a big difference' page 18 Back

301   ODPM (2006) A Framework for City-Regions - Research Report, LGA (2006) 'Improving Local Transport: how small reforms could make a big difference' Back

302   Q416 Back

303   Q427 Back

304   Ev 50 Back

305   Q355 Back


 
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