Spending round 2013: The case for investment in transport. Mayor s Office, May 2013

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1 Spending round 2013: The case for investment in transport Mayor s Office, May 2013

2 Key messages London is the productive heart of the UK economy, supporting jobs and growth across the UK London s population growing faster than previously thought Long-term stable funding more efficient/effective for whole supply chain Investment is not just about transport it s about homes, regen, etc Offer to Government: Spade-ready road and rail projects Delivering clear short-medium term benefits Ongoing efficiencies programme Over medium term covering own operating costs Vocal support from business Capitalising (not cutting) our investment 2

3 Relative productivity Percentage difference from UK average, 2011 (source: ONS) Northern Ireland Scotland Wales South West South East London East West Midlands East Midlands Yorkshire North West North East

4 UK jobs and growth 40,000 jobs supported in supply chain outside London in 2011/12 64 per cent of our spend went to suppliers outside London 55,000 will work on Crossrail 3,500 apprentices, 3,400 long-term unemployed into work 4

5

6 Demand up 29% by Replace with projected growth in demand 2.1m extra public transport trips a day Index: 2001 = MTS forecast Trips (forecast) Trips 6

7 Tube crowding today 7

8 Station crowding

9 9

10 30% reliability improvement Train kms operated (millions) Excess journey time, minutes (measure of delays)

11

12 Corridor reliability

13

14 Our investment plan: A pipeline of spade-ready projects for growth Network Under way/ready to start Ready to start within 3-5 years Tube Roads Rail Bus Northern line upgrade Sub-surface line upgrade Tube Reliability plan Victoria, Tottenham Court Road, Bond Street, Paddington and Vauxhall upgrades Bank (Waterloo & City line) Northern Line Extension Structures and Tunnels Investment Programme Removing roads pinch points SCOOT traffic signal control Old Street roundabout, Elephant & Castle, Euston Road growth schemes Lewisham Gateway, Tottenham Hale, Streatham High Road, Malden Rushett, Olympic Park access, A1 Mill Hill Cross and Rotherhithe roundabout improvement projects Better Junctions Programme Crossrail Overground capacity expansion Docklands Light Railway north double-tracking Tram platform works and tram procurement New Bus for London Bus stop and station renewal Extra Jubilee line trains 36 trains-per-hour on the Jubilee and Victoria lines Bakerloo/Piccadilly line upgrade Bank and Elephant & Castle station upgrades Northern line upgrade 2 Croxley Rail Link New Silvertown tunnel Vauxhall Cross, King s Cross, Brent Cross, White City, Earls Court, Wandsworth, Waterloo, Victoria, Barking Riverside and A23 Fiveways growth schemes Tower Hill, Archway, Seven Sisters Road/ St Anne s Road, Highbury Corner, A23 Purley Cross, Stoke Newington and Gallows Corner improvement projects Bus transit schemes Crossrail 2 under construction to 2033 Bakerloo line extension to south 14 east London in 2030s

15 Roads Task Force 15

16 16

17 1 slide with Embankment pic from cover of cycling strategy

18 Unlocking growth Waterloo IMAX Croydon Fiveways Old Street Roundabout Vauxhall / Nine Elms Tottenham Hale Elephant and & Castle 18

19 Capital investment 19

20 Efficiencies 9.8b savings to 2017/18 3.3b to date Further 5b by 2021/22 Roughly 15% reduction in total budget Includes plan to cover operating costs from revenue by 2021/22 Examples 1.1bn more in commercial revenue by 2021/22 Signalling upgrade costs cut by 66% per km 2,300 fewer posts so far Road re-surfacing costs down 40% Savings secured: 9.8bn Share Support Services efficiencies 37% Investment programme 10% Tube maintenance 9% Rail and Underground operations 8% Bus network and operations 10% Other Surface Transport operations 7% Commercial development 3% 20

21 Long-term, stable funding essential London needs the right level of funding and certainty over time Investment has been erratic, adding inefficiency and leaving infrastructure unmodernised Stop/start will add 15% to our costs Steady, sustainable investment: Best deals from suppliers Boosts business confidence in the UK and internationally Allows suppliers to invest in jobs and apprentices 2.0bn 1.0bn 0.0bn 2.0bn 1.0bn 0.0bn Our capital plan 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 Our net operating costs 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21

22 Net operating costs 2.0bn 1.0bn 0.0bn 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 22

23 UK top 40 Highways Agency programme in construction pre-2010 Spending Review Rail electrification programme (including Great Western Electrification) Reading upgrade programme King s Cross station improvements Highways Agency managed motorways programme Spending Review projects Rail infrastructure and rolling stock enhancement Northern Line Extension to Battersea Electricity generation wind energy investment 8 Highways Agency trunk road improvements programme 2010 Spending Review projects East Coast Main Line Rural mobile coverage (Mobile Infrastructure Project) Electricity and gas transmission and distribution investment Highways Agency Autumn Statement 2011/2012 package Thameslink Ports container terminal projects High Speed Two Alternative approaches to resolving issues along the A14 corridor Electricity generation biomass investment Ports renewable energy projects 4G mobile auction and roll-out New Lower Thames crossing Crossrail Growing Places Fund Heathrow capital investment programme Mersey Gateway Bridge Smart meters London Underground investment programme Fixed broadband investment private and public Local transport projects funded at or before Spending Review 2010 Local authority major transport schemes development pool projects Northern rail connectivity (Liverpool-Newcastle including Northern Hub) Intercity Express Programme Electricity generation new nuclear investment Carbon Capture and Storage investment Urban broadband fund super connected cities 16 Thames Tideway Tunnel TfL s investment programme Dependent upon TfL s investment programme Gatwick capital investment programme Regional Growth Fund (RGF) Electricity generation gas investment (CCGT) Flood and coastal erosion risk management programme (including Thames Estuary 2100) 23

24 London v Paris 24

25 London v Paris London v Paris French Prime Minister Ayraut announced a funding package for programme upgrades, extensions and new lines The announcement means funding for the ongoing Paris investment programme Nouveau Grand Paris is secure until 2030 The total value of the funding package is around 30bn. 12bn has been earmarked for the modernisation of existing infrastructure It is estimated the programme will create one million new jobs over the next 15 years Businesses making decisions about where to invest in western Europe can now see a series of funded infrastructure improvements in the pipeline for Paris over the next 17 years 25

26 Nouveau Grand London? Northern Line Extension Crossrail 2 Silvertown Tunnel Bakerloo Line and Tramlink extensions Lea Valley 4 tracking and Barking Riverside More significant investment in road infrastructure eg tunnelisation Plus? 26

27 Unlocking growth (2) Northern Line Extension The Vauxhall, Nine Elms and Battersea Opportunity area: 17,000 new jobs 7,000 new homes 27

28 Spending round 2013: The case for investment in transport Mayor s Office, May 2013

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