Road development in an age of austerity

Graham DaltonChief Executive, Highways Agency

CIC February 2012

Strategic Road Network 7100km of Motorway and All Purpose Trunk Road

3% of all roads in England

33% of all road traffic

62% of all freight traffic

SRN serves an average of 4 million drivers every day

Over 80% of all goods travel by road

Function: Operate

4

Function: Maintain

Function: Improve

Function: Wider government priorities

• Planning

• Road Safety

• Roadworker Safety

• Health & Safety

• Sustainability

The scale of the challenge

Total Programme Budget

-

500

1,000

1,500

2,000

2,500

3,000

£m

2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15

2011 Autumn Statement - Growth Review (£0.9bn)

Fiscal Stimulus 2009/10 (£0.4bn)

Core programme Budget

Resource Budget

2010-11

Maintenance37%

Roads PFI Service

Payments29%

Network Management

(incl. programme

staff)4%

Traffic Officer Service (incl. programme

staff)7%

Technology PFI Service Payments

6%

Technology Projects

1%

Admin Resource DEL

7%

Other (including other

income)2%

Smaller Schemes and

R&D7%

2014-15

Maintenance26%

Admin Resource

DEL6%

Other (including

other income)1%

Smaller Schemes and

R&D4%

Technology Projects

1%

Technology PFI Service Payments

7%

Roads PFI Service

Payments41%

Network Management

(incl. programme

staff)8%Traffic Officer

Service (incl. programme

staff)6%

Capital Budget2014-15

Traffic Officer Service

0%Network

Management1%

Maintenance Renewals

24%

Smaller Schemes

4%

Capitalised Staff and

Office Estate costs

2%

Pinch point fund7%

Major Schemes

62%

2010-11

Maintenance Renewals

23%

Other expenditure

1%

Network Management

1%

Technology PFI (Service Payments)

0%

Technology Improvements

8%

Major Schemes

60%

Smaller Schemes

5%

Capitalised Staff and

Office Estate costs

2%

Taking out cost

AMOR• New maintenance

specification

• Requirements are outcome based as far as possible

• the Service Provider takes a risk based, intelligence led approach to optimise their delivery of the requirements

• safety is still our number one priority.

Reducing consultancy

Design Team

Delivery Board(function sponsors)

Operations & Technology

Team

Risk Management

Team

Commercial Team

Communications & Stakeholder Engagement

Team

MP Finance Team

Portfolio Office

Lean Efficiency & Knowledge Management

Team

Programme & Planning

Team

Health & Safety Team

Procurement Team

Development Team

Organisational Development

Process re-engineering

Improving performance for the road user

Traffic information

Being a better neighbour

A learning organisation

Where does the construction industry fit

in all this?

The engineering is fun. But its not why we are here

The engineering is fun…

Contractor

Consultant

Client

– aligned interests

Help your clients deliver their service

Spaghetti junction aerial view

Political Dimension