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
