Written evidence from Birmingham City
Council (TE 111)
1. BACKGROUND
A separate note has been supplied on the recent trends
in the local economy and transport. The Council considers there
are important links between the health of the local economy and
ease of connectivity/accessibility. Other factors such as quality
of life, a sense of place and education/training are also important.
The combining of the transport and regeneration portfolios recognises
their inter connectivity.
RESPONSES TO
QUESTIONS
2. Have the UK's economic conditions
materially changed since the Eddington Transport Study (2006)
and, if so does this effect, the relationship between Transport
Spending and UK Economic Growth?
The conditions have significantly changed and the
West Midlands has been particularly hard hit. The relevant data
is in the separate note.
The three priorities for transport investment set
out by Eddington still hold true ie international Gateways, National
links and Urban networks. This is why the City Council is supporting
High Speed Rail, freight links to the ports, Birmingham Airport
expansion and quality public transport. The work undertaken by
Professor Parkinson in preparation for the Big City Plan identified
the role of Core Cities in driving forward the national economy.
3. What type of Transport Spending
should be prioritised in the context of an overall spending reduction,
in order to best support Regional and National Economic Growth?
Capital Transport spending has risen slightly (from
15% in 2010-11 to 19% in 2014-15) as a proportion of total government
capital and this is to be welcomed. While support for major projects
(such as Crossrail) has held up relatively, local transport sees
a near 30% fall.
Schemes that help local communities are likely to
suffer. The withdrawal of a range of specific grants will assist
local discretion but the new funds subject to bidding rounds (Local
Sustainable Transport Fund and Regional Growth Fund) are at a
modest level. This will result in only a limited number of projects
being able to proceed - as there is a limit to how much the private
sector will pick up in the current development environment. The
West Midlands has pioneered Impact Investment Locations (see RDA
evidence) - clearly identifying the key priorities.
Overall Eddington's priorities are still relevant
although a sustainable, low carbon approach can result in some
scheme changes.
4. How should the balance between revenue
and capital expenditure be altered?
The budget reductions more severely impact on the
revenues field. While some expenditure on smarter choices could
come from the Sustainable Transport Fund, staff resources for
travel planning, road safety education/cameras, public transport
promotion, cycling and walking will be hit. The sustainability
agenda will be affected with businesses and operators unlikely
to fill the gap.
The cut in BSOG to bus operators and the pressure
on concessionary travel budgets (including new guidance which
is expected to reduce payments by 10%) is likely to result in
fare increases and need the for higher subsidies. It is right
that the users will need to pay a higher proportion of fares but
local authorities are not well placed to step into the breach.
Therefore increased support for such activities does
need to be built into future plans.
5. Are the current methods for assessing proposed
Transport Schemes satisfactory?
This is well covered by evidence from a range of
academics, although the principle of value for money and wider
economic, environmental and social impact is accepted, what is
needed, is a lighter touch from Government with local government
able to take most decisions e.g. the major scheme threshold of
£5 million has remained the same for over ten years. The
guidance from DfT has become more onerous and can cost 10% of
total costs.
6. How will schemes be planned in the absence
of regional bodies and following the revocation and abolition
of Regional Spatial Strategies?
Birmingham City Council has and will continue to
be capable of planning and executing the full range of schemes.
It took the leading role in assembling the funding package for
the Birmingham Gateway project. The Government is intent on replacing
the Regional Funding Allocation process with a new regime, suggesting
some autonomy, perhaps to Local Enterprise Partnerships. The metropolitan
authorities have a history of working together on transport priorities
and cross boundary issues through the Transport Partnerships and
the Local Transport Plan.
November 2010
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