Transport and the Economy - Transport Committee Contents


Written evidence from Oxfordshire County Council (TE 51)

Have the UK's economic conditions materially changed since the Eddington Transport Study and, if so, does this affect the relationship between transport spending and UK economic growth?

Yes - in the general sense that the economy has experienced a recession and, more specifically for transport, with the subsequent squeeze on public sector funding which is leading to significant and direct reductions in the funding available for transport schemes, particularly capital funding. Owing to the need to protect highway assets and not create problems for the future, the funding that is available is being prioritised for highway maintenance, leaving little if anything for new schemes in the short term.

Because of this, transport investment needs to be much more closely matched to delivering growth. Securing long term sustainable economic development requires sustained, long term public investment - not least to stimulate private sector investment. To take Transport as an example, investing in effective transport links is absolutely vital in enabling recovery from recession and post-recession growth, not something that should be considered as only being affordable as a result of recovery.

The development of a Local Enterprise Partnership for Oxfordshire, which has now been submitted as a bid, includes working with adjoining local authorities and, where they exist, Local Enterprise Partnerships, to promote and secure delivery of strategic enabling infrastructure. In particular it will champion investment in:

(i)  East-West Rail, as a key piece of enabling infrastructure for economic and housing growth;

(ii)  Improvements in the capacity of Oxford Station as part of a comprehensive improvement strategy for the Great Western Main Line;

(iii)  Measures to address bottlenecks on the A34 corridor.

(iv)  Improvements to the transport network around the Abingdon / Didcot area to support the development of the world leading Science Vale UK proposals.

What type of transport spending should be prioritised, in the context of an overall spending reduction, in order best to support regional and national economic growth?

Priority should be considered where:

  • spending unlocks matched or partnership funding, especially from the private sector;
  • there is an opportunity to develop sustainable, low carbon solutions for the long term - rail projects for example
  • schemes or measures meet regional / national as well as local objectives - the Access to Oxford project, in terms of the benefits it would realise on the A34 and parallel rail corridors, is a good example of this
  • strategic links to growth areas can be funded and delivered - particularly where this enables better connections between housing and employment - in particular the Science Vale UK area where infrastructure improvements are essential to its delivery.

Oxfordshire is the most rural county in the South East. This may be heretical thinking to a civil service organised in silos but transport issues in Oxfordshire could be partly alleviated by the presence of a comprehensive high speed Broadband network across the county. People could work and communicate more effectively without the need to travel as much. We suggest that thought should be given to regarding Broadband provision as including an element of transport within it.

How should the balance between revenue and capital expenditure be altered?

With significantly reduced levels of capital, greater levels of revenue funding are needed to enable sufficient emphasis to be placed on Behaviour Change and Travel Planning initiatives, as a complement to development of key infrastructure and an aide to carbon reduction. More systematically involving and engaging with businesses and other key Stakeholders in this area will enable an overall approach to transport investment combining infrastructure, services, and travel behaviour to be "owned" by all parties.

On a more general point, while the economic conditions may have changed, effective transport planning still requires relatively long lead times that we should be planning now for post-recession and schemes that support growth.

In addition the loss of capital funds for planned structural highway maintenance will lead to a deterioration of our asset and place additional pressure on reduced revenue funds. A poorer quality of highway will no doubt have repercussions in terms of economic growth and attractiveness for investment.

Are the current methods for assessing proposed transport schemes satisfactory?

Historically there has been too great an emphasis placed on the "narrow" transport benefits of schemes - particularly reductions in journey time savings (which have also tended to favour highway based solutions). There is a need to ensure that the broad benefits of any transport scheme are captured - not just in terms of delivering economic growth and bringing in private investment, but also in meeting other (e.g. environmental / carbon, health) benefits. Whilst this is a notoriously difficult area to build a cost / benefit model it is essential to ensure that the limited resources go to the projects that deliver the greatest overall benefit.

How will schemes be planned in the absence of regional bodies and following the revocation and abolition of regional spatial strategies?

We believe that assessment of schemes should take place somewhere between city/county and country. Although planning has been, and continues to be, effective at an Oxfordshire level, there is concern that the abolition of regional planning bodies implies further centralisation of transport planning in direct contrast to the government's localism agenda. It is important that there is an overall view taken at some form of intermediate level, both to take proper account of sub-nationally significant schemes (for example East West Rail) and to allow effective prioritisation of strategic schemes. In the South East, councils have proved their ability to come together to plan sub-national needs in a mature way and to take tough decisions about limited resources. There are choices as to which form a sub-national process could most effectively take

One example of how funding may be allocated in this way is that, where a Local Enterprise Partnership has been established and approved by Government, we believe there is scope for Government to operate the Regional Growth fund on the basis of indicative allocations, using a funding formula that would need to reflect needs and opportunities within the individual partnership area.

Without some form of sub-national assessment the system would have to revert to the situation pre-regional bodies where DfT had to assess and compare schemes from widely varying situations. Clearly the situation with a large public transport scheme in a large metropolitan city in northern England is very different from a rural bypass in a shire county. Assessment of the relative benefits is difficult but regional knowledge helps to clarify the situation.

September 2010


 
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