Report Author: Jo Turton, Executive Director for the Environment, Lancashire County Council

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1 Transport for Lancashire Committee 1 st July 2013 Local Major Transport Scheme Investment Programme Report Author: Jo Turton, Executive Director for the Environment, Lancashire County Council Executive Summary In September 2012, the Department for Transport (DfT) confirmed its intention to devolve funding for local major transport schemes to Local Transport Bodies from 2015/16. The DfT's timetable for implementing devolution of local major transport scheme funding requires local transport bodies to submit a provisional list of prioritised schemes by July This report summarises the prioritisation process and sets out a proposed investment programme. The inclusion of any scheme in the programme should not be seen as a guarantee of funding, as each will have to undergo full major scheme appraisal and demonstrate high value for money. Recommendations The Committee is asked to: 1) Approve and adopt the investment programme set out in Section 2 of this report, subject to full major scheme appraisal and individual schemes demonstrating high value for money; 2) Approve the establishment of a development pool; 3) Authorise the Executive Director for the Environment at Lancashire County Council to inform the Department for Transport of this decision; and 4) Request a programme update report be submitted to the next meeting of Transport for Lancashire. 1. Background 1.1 In September 2012, the Department for Transport (DfT) confirmed its intention to devolve funding for local major transport schemes to Local Transport Bodies (LTBs) from 2015/16. More specifically LTBs, including Transport for Lancashire, are required to determine which local schemes to prioritise for funding, review and approve individual major scheme business cases, and ensure effective delivery of the programme.

2 1.2 The DfT's timetable for implementing devolution of local major transport scheme funding requires local transport bodies to submit a provisional list of prioritised schemes by July In January 2013, the DfT provided indicative, population-based funding levels to inform programme development. For Transport for Lancashire, this amounted to an indicative funding allocation of 35.1m for the period 2015/16 to 2018/19, based on the total amount of funding for local major transport schemes in the 2010 Comprehensive Spending Review and distributed between LTBs based on 2017 population forecasts. 1.3 The DfT also requested that LTBs make contingency provision in their programmes for actual budget levels to be one third higher or lower than their indicative figure. For Transport for Lancashire, this would equate to a range from 23.4m to 46.8m. 1.4 The Government also gave notice that LTBs need to be responsive to evolving agendas, particularly with regard to Lord Heseltine's recent Growth Review, the development of local growth plans and the emergence of City Deals including the Preston and Lancashire City Deal. At its last meeting, Transport for Lancashire endorsed the City Deal partners' proposal to Government seeking, as part of the Wave Two City Deal process, an eight year local major transport scheme allocation for Lancashire. To reflect the need to set City Deal schemes within the context of Transport for Lancashire's broader priorities, this would effectively require the equivalent of 10 years worth of funding over the eight year period. 1.5 Four local transport bodies (Greater Manchester, West Yorkshire and York, the Sheffield City region and South Yorkshire and the West of England) have secured ten year allocations through the City Deal process. Based on these agreements, Transport for Lancashire could secure an effective indicative funding allocation of 107m for the ten year period 2015/16 to 2024/ Members will recall approving a prioritisation methodology and a list of candidate schemes at their previous meeting. The prioritisation methodology comprises a policy-led, criteria-based strategic framework and associated scoring mechanism based on current industry best practice. Independent consultants have undertaken the prioritisation work. The consultants made some minor adjustments to the value for money and deliverability criteria to reflect the most recent advice from the DfT and to ensure that all of the value for money and deliverability criteria would be scored consistently and therefore have equal weighting. 1.7 The prioritisation methodology involves a two stage assessment process: Policy (economic, environmental, social and distributional); and Value for Money and Deliverability. To reflect the strong emphasis both nationally and locally on delivering economic growth, a 50% weighting has been applied to the economic policy criteria, leaving a 25% weighting applied to environmental and to social /

3 distributional criteria. The three policy themes (economic, environmental and social/distributional) then account for half of each scheme's overall score, with the remaining 50% accounted for by the value for money and deliverability criteria, as summarised in the table below. Economy 50% Environment 25% Social/Distributional 25% Weighting 50% Value for Money & Deliverability 50% A sensitivity check involving the application of equal weightings across the three policy themes resulted in only minor changes to scheme rankings, thereby demonstrating that the process is robust. 2. Proposed Investment Programme 2.1 The 24 candidate schemes have been divided into 'quartiles' based on their assessment scores, with the six best performing schemes in the top or first quartile. The fourth quartile contains the six schemes that performed least well against the agreed assessment criteria. Schemes in the top two quartiles generally demonstrate a strong fit with the economic policy criteria in addition to the value for money and deliverability criteria. 2.2 Schemes in the top quartile and their individual Transport for Lancashire funding requirements comprise: Blackburn-with-Darwen Borough Council Clitheroe to Manchester Rail Corridor Improvements 12.4m Haslingden Road Corridor Improvements 1.8m Blackpool Borough Council Blackpool Tramway Extension North Pier to Railway Station 16.4m Lancashire County Council Preston Western Distributor 58.0m A6 Broughton Bypass 15.1m Centenary Way Viaduct Major Maintenance Scheme 2.8m The total cost of the proposed investment programme based on information supplied by scheme promoters is 106.5m, just within the estimated indicative funding allocation of 107m assuming a successful City Deal outcome. 2.2 Within the indicative funding allocation of 35.1m already announced by the DfT for the period 2015/16 to 2018/19 and based on available spend profiles, it would be possible to fund: Clitheroe to Manchester Rail Corridor Improvements; Haslingden Road Corridor Improvements; Blackpool Tramway Extension North Pier to Railway Station; and Centenary Way Viaduct Major Maintenance Scheme

4 at a combined cost of 33.4m. 2.3 It is proposed that the six schemes in the second quartile form a development pool for inclusion in the investment programme as and when resources permit. The development pool will be reviewed on an annual basis to take account of changed circumstances and any potential new schemes that emerge for consideration. The six schemes in the development pool will be: M65 Junction 4 Upgrade Blackpool Bridges Major Maintenance Scheme Yeadon Way Major Maintenance Scheme, Blackpool A56 Villages / Colne-Foulridge Bypass A59 Penwortham Bypass Completion Greyhound Bridge Major Maintenance Scheme, Lancaster 3. Rail Schemes 3.1 Members will note that with the exception of the Clitheroe to Manchester Rail Corridor Capacity Enhancement scheme, rail schemes have scored poorly, particularly with regard to value for money and deliverability. This in part reflects a lack of information with regard to scheme costs and the fact that these schemes will ultimately require rail industry support to secure delivery, irrespective of how they are funded. Two in particular (Colne to Skipton and the Skelmersdale Rail Link) are likely to be too costly to deliver through the local major transport scheme investment programme. Lancashire County Council is undertaking further investigative work on the rail network as part of its highway and transport master planning exercise with a view to influencing rail industry investment programmes from Single Local Growth Fund Update 4.1 As reported to the previous meeting of Transport for Lancashire, in its response to the Heseltine Growth Review 'No Stone Unturned', the Government set out proposals to establish a single Local Growth Fund in England from April 2015, devolving responsibilities, influence and growthrelated spending based on strategic plans developed by the 39 Local Enterprise Partnerships. The Local Growth Fund would most likely include devolved local major transport scheme funding from the outset (ie 2015/16 onwards). 4.2 On 27 th June 2013, the Chief Secretary to the Treasury confirmed the establishment of the Single Local Growth Fund (SLGF) in his statement to the House of Commons 'Investing in Britain's Future' as part of the 2013 Comprehensive Spending Review announcements covering 2015/16. The SLGF will amount to over 2bn in 2015/16 and will include local major transport scheme funding from the outset. As well as over 800m of local major transport scheme funding transferring to the SLGF in 2015/16 (of which 314m is already committed to specific projects), a further 300m from other transport funding streams is to be included, comprising 200m from the local authority integrated transport block and 100m from the Local Sustainable

5 Transport Fund. The Government is committing to maintain the SLGF at a total of at least 2bn each year in the next Parliament. 4.3 In addition, the Government has made a further commitment of over 5bn of transport funding from 2016/17 to 2020/21 to enable long term planning of priority transport investment in local areas. This long term transport funding will be available for Local Enterprise Partnerships to bid for through 'Growth Deals' negotiated with the Government as part of their first SLGF allocation, which will be available for spending on the priorities LEPs and their partners determine in their strategic economic plans. Strategic economic plans will cover 2015/16 to 2020/21. The Government will publish guidance on the strategic plans and the 'Growth Deals' process by the summer. 4.4 LEPs with the strongest strategic plans that demonstrate their ability to deliver growth will gain the greatest share of the SLGF. This will require strong and effective governance to be in place and a coordinated approach to spatial planning through the duty to cooperate. However, the DfT has indicated that each LEP area will still receive a guaranteed minimum local major transport scheme funding allocation on a per capita basis, and will confirm this very shortly. 5. Monitoring and Review 5.1 The investment programme will need careful management to ensure that it remains deliverable over the indicative funding allocation period. In particular, outturn prices need acquiring from scheme promoters and a phasing and investment programme finalised once the requirements of the Single Local Growth Fund and outcome of the City Deal negotiations are known. 5.2 The inclusion of any scheme in the programme should not be seen as a guarantee of funding, as each will have to undergo full major scheme appraisal and demonstrate high value for money. A programme update report will be prepared for consideration by Transport for Lancashire on a quarterly basis from September 2013 (the end of Quarter 2 for the financial year 2013/14).

6 Annex A: Scheme Outlines: Investment Programme Clitheroe to Manchester Rail Corridor Improvements A scheme to improve the standard and frequency of rail services operating between Blackburn and Manchester delivered through selective double tracking between Bolton and Blackburn. The Blackburn to Manchester route is the busiest serving Manchester without a core two trains per hour service and demand between Blackburn and Manchester is similar in magnitude to the combined Manchester demand for Bradford and Halifax. Haslingden Road Corridor Improvements Significant development in the Haslingden Road corridor has placed additional pressure on the surrounding highways network. Haslingden Road, Walker Park, Roman Road and Shadsworth industrial estates provide a range of employment, business, health and leisure opportunities and facilities, serving Blackburn with Darwen and the wider East Lancashire area. The scheme will widen Haslingden Road and upgrade mini roundabouts to signalised junctions, facilitating future regeneration and reducing congestion. Blackpool Tramway Extension North Pier to Railway Station The scheme comprises construction of 700 metres of new tramway from the Promenade at North Pier along Talbot Road to Blackpool North railway station and associated interchange between tram and rail, thereby increasing accessibility and connectivity along the Blackpool / Cleveleys / Fleetwood corridor. Preston Western Distributor Construction of a new 4.5km dual carriageway road between the M55 near Bartle and the A583 near Lea Gate to support delivery of the North West Preston strategic housing location and improve access to the Strategic Road Network from the Enterprise Zone at Warton. The scheme includes a new all moves junction with the M55. A6 Broughton Bypass Completion of the Broughton Bypass as a solution to congestion at Broughton and comprising the construction of a new road link between M55 Junction 1 (Broughton Roundabout) and the B5269 Whittingham Lane. The scheme supports delivery of housing and employment sites including the former Whittingham Hospital. Centenary Way Viaduct Major Maintenance Scheme, Burnley Centenary Viaduct is a seven span continuous bridge carrying the A682 principal road through the centre of Burnley. The scheme comprises replacement / renewal of a number of bridge related features.

7 Annex B: Scheme Outlines: Development Programme M65 Junction 4 Upgrade This scheme involves the full signalisation of the M65 junction 4 at Earcroft, which will support Blackburn-with-Darwen Borough Council's Development Plan aspirations, ensuring that traffic can exit the M65 without excessive queuing. The scheme includes associated access improvements into the Chapels area of Blackburn with Darwen, supporting the Council's Housing proposals in East Darwen, the build-out of remaining land south of M65 Junction 4 and at Lower Darwen Paper Mill. Blackpool Bridges Major Maintenance Scheme Many of Blackpool's bridges are in poor condition, weak and unable to carry heavy loads. Most structures carry roads over railway lines, so Network Rail has a significant interest. All of these bridges require bringing back to a safe and good condition. Yeadon Way Major Maintenance Scheme, Blackpool Yeadon Way connects the M55 motorway with the extensive car parking areas in Blackpool town centre and is of critical importance to the resort's economy, including future investment on the Central Station site. Constructed on a former railway embankment, the road has significant maintenance issues. Most of the bridges require remedial maintenance. Yeadon Way's embankments and parapets, including the carriageway, require major strengthening works. A56 Villages / Colne-Foulridge Bypass Construction of a new single carriageway road from the A6068 Vivary Way in Colne to the A56 Lancashire/North Yorkshire boundary north of Earby. The Scheme is currently under review as part of Lancashire County Council's M65 to Yorkshire Corridor Study, and alternative lower cost options may emerge. A59 Penwortham Bypass Completion Completion of the Penwortham Bypass between Broad Oak roundabout and Howick Cross, complementing capacity improvements along the A582 and Ribble Bridge linking to Ringway funded principally through CIL. The scheme comprises 1.3km of new dual carriageway. Greyhound Bridge Major Maintenance Scheme, Lancaster Major programme of maintenance works for Greyhound Bridge including joint replacement; resurfacing; waterproofing; painting; bearings; drainage; concrete repair.

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