Funding for local authority transport and land-use schemes in the UK

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    evealed that the funding system is failing to meet the needs of the current




    Identifying and obtaining appropriate finvestment and for operation is a reco

    ion ofue hasand Im, Transd Physeeksch susnd delning a


    focused on the barriers to cross-cutting sustainable transport


    Contents lists availabl

    journal homepage: www.els


    & Transport Research Laboratory 2008. The information contained herein is

    Transport Policy 15 (2008) 379386Specic barriers were also identied which affect other sectorsCurrent address: AEA, The Gemini Building, Fermi Avenue, Harwell

    International Business Park, Didcot, Oxfordshire OX11 0QR, UK.2solutions and methods of cross-sector working.The research revealed a number of issues that were identied to

    be impeding local authorities progress towards the implementationof more sustainable urban transport systems (Hull et al., 2006).

    abilities to engage in policy formulation and with the implementa-tion of transport schemes at the local level. Uncertainty and barriers

    the property of TRL Limited. Whilst every effort has been made to ensure that the

    matter presented in this paper is relevant, accurate and up-to-date at the time of

    publication, TRL Limited cannot accept any liability for any error or omission. Corresponding author. Tel.: +44134 4773131; fax: +44134 4770356.E-mail address: (N. Paulley).1

    DISTILLATE ConsortiumMembers include ITS (Leeds), SEI (York), Heriot-Watt

    University (Edinburgh), UCL (London) and TRL.0967-07

    doi:10.1and their counterparts in public health, environmental strategy,land-use planning and local authority corporate policy units, and

    $Fig. 1 provides an overview of the projects structure.This paper focuses on one project within this programme, Project

    E: Improved Mechanisms for Funding and Phasing of Implementation.

    local authority partners on the barriers to the delivery of transolutions (Hull and Tricker, 2004). Interviews and a second swere undertaken in 2006, addressed to local transport plaand projects will enhance the sustainability of urban areas and thequality of life of people who live in them.

    DISTILLATE consists of seven projects looking at OrganisationalBehaviour and Barriers, Option Generation, Indicators, Organisa-tional Delivery, Funding, Analytical Support Tools and Appraisal.

    interviews with local authority practitioners. The results from thisresearch have been used within DISTILLATE projects for identify-ing issues and for monitoring changes in local authorityperspectives as a result of the study.

    A questionnaire was developed and administered amongst UKeffective planning and implementatschemes by local authorities. This issthe UK DISTILLATE2 project (DesignTools for Integrated Local Land usement), a UK EPSRC (Engineering anCouncil) funded project, whichimprovements in the ways in whiland-use strategies are developed aeffective and efcient selection, plan0X/$ - see front matter & 2009 N. Paulley. Pu

    016/j.tranpol.2008.12.006unding for both capitalgnised barrier for thetransport and land-usebeen addressed withinplementation Supportport and the Environ-sical Sciences Researchto enable signicanttainable transport andivered in the UK. Morend delivery of schemes

    transport and land-use projects and how these procedures affectimplementation. The paper describes the ndings of the researchactivities undertaken to date, and discusses the planned outputs.

    2. Background

    The DISTILATE Organisational Behaviour project (the corepart of Fig. 1) acts as an overarching project, dealing with theidentication of barriers to the implementation of sustainableurban transport systems at the local authority level. Part of themethodology involved a number of questionnaires and in-depth1. Introduction The project seeks to understand the funding procedures which affectFunding for local authority transport an

    Charlotte Brannigan 1, Neil Paulley

    TRL, Crowthorne House, Nine Mile Ride, Wokingham, Berkshire, UK

    a r t i c l e i n f o

    Available online 8 February 2009


    Sustainable transport


    Local transport planning


    Local transport schemes

    a b s t r a c t

    This paper focuses on the

    funded DISTILLATE (Desig

    and the Environment) pro

    have included a literature

    The research identied an

    difculties in obtaining fu

    issues. The research also r

    transport policy focus on

    project outputs are descri

    funding bodies regardingblished by Elsevier Ltd. All rightsnaging travel demand, rather than being a supply-led process. The key

    , which include a funding toolkit for local authorities, and guidance for

    barriers faced.

    & 2009 N. Paulley. Published by Elsevier Ltd. All rights schemes in the UK$

    earch activities, ndings and planned products of one of the UK EPSRC-

    d Implementation Support Tools for Integrated Local Land use, Transport

    s on the funding of transport and land-use schemes. Research activities

    iew, dialogue with local authority case studies and a funding workshop.

    plored a range of barriers to funding, including lack of revenue funding,

    ng for soft schemes, the formation of partnerships and timing-related

    e at ScienceDirect



    nspoC. Brannigan, N. Paulley / Tra380associated with funding have been identied in both surveys. Thesebarriers have been summarised in Table 1 where barriers have beengrouped in terms of institutional, technical, political and funding-specic barriers. The majority of barriers to identifying andobtaining funding for transport schemes appear to be related topolitical and institutional aspects, rather than the funding sourcesthemselves.

    Therefore these and other funding barriers have been moreclosely examined within the Funding Project, as part of the overallaim of DISTILLATE to develop tools and products which will aidlocal authorities in overcoming barriers.

    3. Methodology

    A number of research activities have been undertaken withinthe DISTILLATE Funding Project. An extensive literature review wascompleted (Burke et al, 2005), which identied a variety of fundingsources used within the UK to nance local transport projects.

    The review included wide-ranging literature from the UK andfurther aeld, identifying the various funding mechanismsavailable for transport projects. In the UK, public, private andpublicprivate funding is obtained by local authorities and theGovernment to implement and maintain transport projects. Themain public source of funding is the Local Transport Plan (LTP)settlement awarded to local authorities to implement schemes inthe local area, although additional sources of funding are oftenrequired to full all needs.

    A number of studies stood out as important in understandingthe funding of transport in the UK and the implications of using

    Fig. 1. DISTILLATE prt Policy 15 (2008) 379386various sources. The Commission for Integrated Transport (CfIT,2005) undertook research into public funding of LTP projects,which identied that revenue funding is a key issue for localauthorities. Revenue funding, as referred to in this paper, isfunding used for the ongoing operational or maintenance elementof schemes. Transport consultancy Atkins recently reviewed theLTP process, and included a section on funding. This study for theDepartment for Transport (DfT, 2005a) revealed that localauthorities are using a wide variety of funding sources tosupplement the LTP capital allocation. However, the use ofalternating funding streams has its drawbacks, such as theirtime-consuming nature (particularly during the bidding pro-cesses), and local authorities should ensure that this does notdetract from effective delivery.

    Like the CfIT, the Atkins study (DfT, 2005a) identies revenuefunding, or lack of it, as a key barrier to delivery, especially forthe funding of infrastructure maintenance. Increasing costsfor existing transport services, internal inefciency exercises, aswell as funding pressures in other services and local politicalissues may further exacerbate the problem of low revenuefunding.

    In addition to these traditional sources of funding, a number ofinnovative funding mechanisms were identied in the literaturereview, including applying a Land Value Tax, Work Place ParkingLevies, Road User Charging (RUC), Developer Levies and TransportDevelopment Areas (TDAs). Some of these methods are beginningto be used in the UK, such as Road User Charging, whereasothers are still in the early stages of development. However, thereare some positive opportunities for alternative funding mechan-isms to assist in the funding of transport schemes in the UK.

    roject structure.





















    C. Brannigan, N. Paulley / TranspoFunding-specic Strength of focus on narrow transport priorities

    Funding for sustainable urban transport solutions

    Other Physical characteristics of local areasSuband




    National government unwillingness to use its

    own executive actions to support transport


    Politicssustainable strategiesPolitical Societal constraints on the development ofBarriers to funding (adapted from Hull et al., 2006).

    Type of barrier Progress towards more sustainable urban

    transport systems

    Technical Analytical capabilities and technical decision-

    making skills

    Institutional Complexities of organisational collaboration in

    the process of transport planning

    Lack of local control over the implementation

    and operation of schemes

    Professional mindsetsTable 1sequent updated literature reviews were undertaken in 20062007, to identify any new material.

    The DISTILLATE project involves 16 local authority partnersm across the UK. Each project within DISTILLATE has beenrking with selected local authorities in developing and utilisinge studies related to transport and land-use schemes. Theding Project is associated with ve case studies:

    a cycle/shared use route (part of the National Cycle NetworkNCN);a showcase bus route;city centre redevelopment and transport improvements;an airport rail link andprovision of a bus service and transport infrastructure in a newhousing development.

    Meetings and informal interviews have been held between theTILLATE project team and the appropriate case study localhority ofcer to discuss scheme details and the associatedding issues and barriers that have been experienced. Furthercussions will be held with the case study authorities before theof the project to discuss scheme progress and any other

    ding issues that may have arisen.The most recent activity within the Funding Project was theanisation of a workshop which was attended by various localhorities and transport consultants. In addition to a number ofal authority presentations on specic scheme-related fundingues, breakout sessions were held to discuss a variety of fundingics, including:

    local authority barriers,funding barriers,partnerships,revenue funding,




    Tandrritorial and/or temporal mismatches

    tween service delivery activities

    ross different sectors

    Adverse effect on the availability of

    staff time (e.g. because of cost

    efciency agendas)

    ganisational constraints (time,

    sources, leadership, interests,

    ructures and systems)

    Difculties occur in delineating

    contributions between partners in joint

    funding packages across sectors

    arity and consistency of

    mmunication between sectors

    orizontal interaction)

    litical inuences adversely affecting

    oss-sector policy integration

    pact of direction and decisions of

    ntral government (vertical/diagonal


    igh levels of funding uncertainty Adverse impacts upon scheme

    prioritisation and delivery processes

    due to specic funding pots/streamstheformulation and with the

    mentation of transport schemes

    local level.her

    licysectors ability to engage in Funding-related barriers

    rt Policy 15 (2008) 379386 381capital funding andinnovative funding mechanisms.

    The ndings from these ongoing activities will contribute totwo key outputs of the Funding Project; a local transportding toolkit for local authorities; and a guidance note forders on funding barriers and issues faced by local authorities.

    Funding of local transport schemes in the UK

    This section looks in more detail at the mechanisms currentlyplace in the UK for the funding of local transport schemes. Thein source of funding for local transport projects in England isDepartment for Transports LTP scheme. The concept of

    ducing an LTP was rst introduced in the 1998 Transportite Paper A New Deal for Transport: Better for Everyone (DETR,8), and the requirement set out in the subsequent Transport2000. The LTP process replaced the previous Transport PoliciesProgrammes (TPP) capital settlement process. The main

    blems associated with the TPPs had been identied as thelowing (DfT, 2005b):

    Government took decisions on very small schemes, often costingas little as a few thousand pounds, wasting time and resources.Decisions were taken in isolation, often on purely nancialgrounds, rather than their contribution to a wider strategy.Emphasis on annual settlements was seen as militating againststrategic long-term planning by local authorities and, exceptfor the package approach, does not encourage an integratedapproach to dealing with transport problems.

    he rst round of LTPs was for the period 2001/022005/06,the second round of LTPs is set to run from 2006/07 to 2011/

  • 12. LTPs are prepared by all County Councils, Unitary Authoritiesand Partnerships in Metropolitan Areas, but also PassengerTransport Executives3 (PTEs) and Metropolitan Areas in partner-ship with associated District Councils. The LTPs should set out anauthoritys local transport strategies and policies, and animplementation programme (DfT, 2005c).

    The LTP is used by the DfT to inform decisions on capitalfunding, the development of DfT policies on local transport,monitor the delivery of key objectives and targets that aredelivered through the actions of Local Government and feed intothe authoritys Comprehensive Performance Assessment Score.4 In

    availability and use of revenue funding, the formation of partner-


    C. Brannigan, N. Paulley / Transpo382solutions. Revenue is required for a variety of uses, includingrunning services, maintenance of vehicles and infrastructure,provision of information (such as Real Time Passenger Informa-

    3 Passenger Transport Authorities (PTAs) are responsible for assessing the

    public transport needs of a metropolitan area, making policy decisions about

    public transport provision and producing the LTP. Passenger Transport Executives

    (PTEs) are local government bodies which are responsible for delivering public

    transport within large urban areas. There are seven PTEs within the UK, including

    Nexus (Tyne andWear), GMPTE (Greater Manchester), Merseytravel (Liverpool and

    Merseyside), Centro (West Midlands), SYPTE (South Yorkshire), Metro (West

    Yorkshire) and SPT (Strathclyde).4 Comprehensive Performance Assessment (CPAs) is a...


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