Plymouth Growth Board, 31st October 2016

Item 4 Ocean City Infrastructure Flagship Report

Accelerating infrastructure delivery, creating the right environment for economic growth.

INTRODUCTION

This report summarises progress on the Ocean City Infrastructure Flagship’s 5 strategic objectives, and associated 11 deliverables, which are as follows:

Unlock critical infrastructure for marine sector growth and Mayflower 2020 1. Develop and deliver a Marine Industries Production Campus (MIPC) at South Yard to support marine and advanced manufacturing growth across the south west peninsula 2. Deliver a Visitor Economy Capital Plan for key ‘ocean city’ infrastructure (to follow)

Optimise the economic potential of the city centre and waterfront 3. Prioritise strategic infrastructure in the city centre and waterfront to drive economic growth

Create the conditions for knowledge-based business growth 4. Deliver new infrastructure to foster business innovation, including a new City Centre Innovation Centre 5. Facilitate further high-value employment growth at Science Park through Phase 5 6. Unlock new strategic employment space at Plymouth International Medical and Technology Park

Enhance the city’s commercial and residential property offer 7. Develop a city-wide Investment Prospectus, prioritising capital projects with the greatest economic returns 8. Support delivery of city’s Housing Plan to ensure new homes support low carbon growth, economic competitiveness and future prosperity

Ensure Plymouth is ‘well connected’ 9. Lobby for reduced rail journey times, electrification, track and signalling enhancements, and improved capacity 10. Improve resilience of strategic road and rail routes to and within the peninsula 11. Unlock growth potential of Derriford through delivery of the Forder Valley Link Road and Derriford Junction

Unlock critical infrastructure for marine sector growth and Mayflower 2020

Key actions:

 Develop and deliver a Marine Industries Production Campus (MIPC) at South Yard to support marine and advanced manufacturing growth across the south west peninsula.  Deliver a Visitor Economy Capital Plan for key ‘ocean city’ infrastructure

Develop and deliver a Marine Industries Production Campus (MIPC) at South Yard to support marine and advanced manufacturing growth across the south west peninsula.

1. BACKGROUND

The Marine Industries Production Campus (MIPC) is the flagship project of the Plymouth & South West Peninsula City Deal. It comprises the phased transfer of 8ha of underutilised Ministry of Defence (MoD) land in South Yard, Devonport, to Plymouth City Council (PCC), for redevelopment for industrial use, with a focus on the marine and advanced manufacturing sectors.

It is estimated that the MIPC project will create up to 1,100 jobs and 25,000 sq m of business space. Over £20m of government and local funding has already been committed to the project as part of the City Deal. Beyond South Yard, the wider City Deal strategy is to unlock and develop other marine sites across the Heart ot the South West (HotSW) LEP area, including Appledore and Yelland (North ), Oxen Cove (Brixham), Noss on Dart (South Devon), and Falmouth and (). The marine and advanced manufacturing sectors are recognised as key strengths in Plymouth and the south west peninsula. Marine employs around 26,000 people, with at least a further 10,000 employed in its supply chain. The HotSW marine sector was worth £406m in terms of GVA in 2012 and contributes around a fifth of UK marine sector output and jobs. It is also comparatively productive, with GVA per FTE of £54,000 compared to a HotSW industry average of £41,300. Marine sector productivity is expected to increase faster than nationally to 2031 (1.7% pa vs. 0.8% pa). World class companies are already taking advantage of our strengths in this area, including Babcock Marine, Princess Yachts, NOV Pipex px, AugustaWestland, Pendennis Shipyard, A&P Falmouth and Kawasaki. Plymouth University, Plymouth Marine Laboratory and the University of Exeter provide world leading marine research expertise and innovation facilities.

2. ACHIEVEMENTS (since February 2015) a) Re-branding of the MIPC project, now known as Oceansgate, with a new logo, a new website, oceansgateplymouth.com, and a new vision statement:

“to bring together marine based businesses to create a world class hub for marine industries, with opportunities for research, innovation and production in a collaborative environment.”

New brand guidelines and a suite of branded applications (e.g. brochures, stationery, advertisements, signage etc) have also been produced to support the delivery of the project - Oceansgate Brochure:

b) Designation of Oceansgate as the first exclusively marine Enterprise Zone in the UK. The Enterprise Zone will benefit from 25 years of investment, supported by business rates discounts worth up to £275,000 per business over a five year period, enhanced capital allowances on new plant and machinery, and superfast broadband. Above all, Enterprise Zone designation raises the profile of the Oceansgate development with Government and business, both nationally and internationally. c) Outline Planning Consent has been granted for the Oceansgate development masterplan, and a Design Guide drawn up to enable detailed development proposals to be brought forward. d) The first phase of development (pictured below), comprising 2,578 sq m of office and light industrial business space, has secured detailed planning consent, and construction is due to start on site in January 2017.

Oceansgate Phase 1 development e) Meanwhile, the first round of demolitions started on site in March 2016, to dispose of a series of redundant MoD buildings, and a further round of demolitions is due to commence in November to prepare the Oceansgate site for redevelopment. f) The provision of new service infrastructure to enable the Oceansgate development to operate entirely independently of Devonport Naval Base started on site in October 2016, with the construction of a new drain across the site to support the Phase 1 development. Further major works are planned to commence in January 2017 to service Phase 1 and Phase 2 development.

3. FUTURE MILESTONES a) October 2016: completion of Phase 2 site transfer. b) October 2016: Phase 1 drainage works start on site. c) November 2016: confirmation of £6.5m HotSW LEP Growing Places Fund and Growth Deal 2 funding for Phase 1 development. d) January 2017: Phase 1 construction start on site e) January 2017: Phase 1 & 2 infrastructure start on site f) 2017: completion of Phase 1 development. g) 2017: commencement of Phase 2 development. h) 2018: completion of Phase 2 development. i) 2018: completion of “enclaving” works to ‘de-couple’ Oceansgate from Devonport Naval Base. j) 2018: completion of Phase 3 site transfer k) 2018: Phase 3 development start on site.

4. RISKS (and mitigation) a) Failure to secure additional public sector capital grants: Seek additional grants, prioritise works and develop contingency plan. b) Cost estimates/allowance prove significantly lower than actually required due to unknowns: Include contingency sums, minimise unknowns and prioritise works. c) Market demand and take up of the MIPC site is slower than anticipated or is insufficient: Review marketing strategy and asking rents / prices. d) Onerous constraints/conditions attached to land transfers: Re-negotiate with MoD and Government. e) Land transfers cannot be achieved to agreed timeframes: Secure certainty as soon as possible but negotiate flexibility

5. RAG

Deliver a Visitor Economy Capital Plan for key ‘Ocean City’ Infrastructure

BACKGROUND

The Plymouth Visitor Plan (2011) sets targets for increased visitor numbers up to 2020 of 20% (from 4.4 million to 5.3 million), and increased spend of 25% (from £247 million to £309 million). This will deliver an additional 2,800 jobs up to 2026.

In 2013 visitor number targets had been met, with over 5.5 million visitors per annum and spend ahead of target at £327 million due to a record year for British tourism following the 2012 Olympics. In 2014 visitor numbers slipped back particularly in the SW due to the Dawlish rail issues, a strong £ and a drop in domestic visitor numbers nationally. Numbers have recovered slightly in 2015 with visitor numbers at 4.96 million and spend £316.5 million, still above our 2020 targets.

Mayflower 400 will act as a catalyst for growth, and the city needs to ensure it has sufficient infrastructure to support visitors and for future economic growth. In particular the following areas have been highlighted as crucial to further growth in the visitor economy and to support Mayflower 400. a) Accommodation Infrastructure: i. 4 and 5 star hotels offer, minimum 200 beds. ii. Larger conference and expo venue. b) Connectivity and significant improvements to public transport, including: i. Significant upgrade to rail station. ii. Improved rail connections to London and regional airports. iii. New coach hub. iv. Water taxi development. v. New market opportunities including cruise terminal. vi. Coach parking and drop off sites. vii. Improved way finding and signage. viii. Lighting the city and monuments. c) Product development – culture, heritage, attractions: i. History Centre. ii. Mayflower Steps memorial and redevelopment. iii. Merchants House renovation. iv. Elizabethan House renovation. v. Naval Heritage Centre and Courageous attraction. vi. Barbican Theatre re-development. vii. Arts Centre re-development.

ACHIEVEMENTS a) Accommodation infrastructure i. The Quality Inn hotel site has been purchased and the old building demolished. A successful tender process is down to 2 developers and it is anticipated a decision will be made early November to develop the hotel pre-2020. Further sites are currently being explored with developers across the city. ii. Conference – 2 medium size conferences of over 300 delegates have been secured for 2017 highlighting the need to develop more suitable accommodation as well as a flexible venue for multi-purpose use. b) Connectivity and public transport i. A development agreement has been signed between, PCC, , GWR and Plymouth University to re-configure and develop the railway station. ii. Work continues at senior level to lobby the government to provide more effective rail services to Plymouth and the South West. iii. Bretonside coach station has been purchased by British Land and vacant possession will take place early November 2016. iv. A new £4.8 million coach hub has been delivered on Mayflower Street as part of the enabling works for the Bretonside development. v. Cruise terminal – AB Ports and Brittany Ferries have agreed to release slots ot be able to sell to market for cruise liners below 300m immediately. Initial interest from a recent trade show has been very positive. Discussions are continuing regarding increasing the size of the berth for larger ships long term. vi. Feasibility has been completed on a new series of trails including a ‘Mayflower Trail’ across the city. Capital Funding of £3 million is being sought from the PCC capital programme in December to leverage in a £5 million national grant funding submission to the Heritage Lottery Fund (HLF) in Spring. vii. Charles Cross Church, Smeaton’s Tower and Mayflower Steps have now been permanently lit. Other key areas of the City and iconic areas including the Citadel have been costed and are subject to funding opportunities. c) Product development – culture, heritage, attractions i. £16 million of HLF funding and £4.5 million of Arts Council (ACE) funding secured for the History Centre. ii. As part of the feasibility for the Mayflower Trail, sites have been explored in Plymouth for an international monument to Mayflower. Funding applications will be submitted in spring 2017 for this work. iii. Elizabethan House and Merchants House are currently undergoing works to make them good. Funding is being sought to refurbish them and have them operational in 2020 as part of the HLF application in spring 2017. iv. Naval Heritage Centre – agreement has been reached that artefacts from the Heritage Centre including some of the figureheads will form part of the exhibition within the new History Centre. £15k funding has been committed towards some of the projects required as part of this enabling process.

FUTURE MILESTONES a) Submission of capital ask for Mayflower Trail to PCC Dec 2016. b) Submission of grant funding application to HLF in March 2017 to secure £5 million towards the Mayflower trail. Other funding sources are also being considered. c) Bid to ACE in spring 2017 to secure funding for Mayflower monument. d) Funding bid to Discover England fund - Expression of Interest end Oct. 2016, full bid Feb. 2017. e) New Mayflower Chief Executive recruited and starts Jan. 2017.

RISKS a) Insufficient resources to deliver Mayflower 400 programme and capital plan. b) HLF bid unsuccessful. c) ACE bid unsuccessful. d) DE bid unsuccessful.

RAG

Optimise the economic potential of the city centre and waterfront

Key actions:

 Prioritise strategic infrastructure in the city centre and waterfront to drive economic growth

Prioritise strategic infrastructure in the city centre and waterfront to drive economic growth

Plymouth Station

Background Plymouth Railway Station is located on the edge of the city centre within a 60’s built environment with poor connectivity to the City Centre. For many of the 2.5m people who use it each year, it is often their first introduction to the City; with limited amenity or attraction and poor links to the City Centre it does not provide to the traveller a vision of a 21st Century City with huge historical significance or pride in its heritage and culture.

In 2020 Plymouth will be at the heart of a huge international celebration; 400 years since the Mayflower finally left Great Britain, from Plymouth, to take the first settlers to America. Mayflower 400 is a celebration of this event, with the eyes of the world on Plymouth.

With such a high profile event due in 2020, expected to attract huge numbers of visitors to the city as a result, redevelopment of this gateway into Plymouth is a priority, not only for Plymouth but for the wider region and country.

Owned and operated by Network Rail, together with Plymouth City Council, Plymouth University and , we have been collaborating together to secure the redevelopment of the existing environment to deliver the services and facilities national and international travellers would expect from such a high profile city.

The key opportunities are:-  To significantly enhance the rail gateway to the City and attract investment to achieve increased economic activity.  Increased services delivered during the next franchise, including from end of 2018 an hourly 3 hour 11 minutes journey time to and from London throughout the day using bi-mode trains with 24% more seats than the existing High Speed Trains (HSTs), which aligns with business and private rail travel and a more attractive arrival gateway to help drive growth in this area of the visitor economy and improving national connectivity.  From May 2017, a 0945 arrival in Plymouth from London allowing the opportunity for business to do a full day’s work in Plymouth  250,000 sqft redevelopment of Station including a potential mixture of: - university student accommodation - new concourse retail space - University of Plymouth academic facilities and offices for Public Sector Hub - Significant additional Car Parking Spaces - New Bus and Taxi facilities  Improved linkages with City Centre  Significant investment into Key Gateway Site (estimated at circa £50m in total)  Creation of 400 Construction Jobs  Release of £5m+ of Public Sector Assets  £100,000+ of Revenue Savings for Public Sector Occupiers

Achievements

The partners have set up a Railway Project Working Group and a Railway Steering Board with key strategic stakeholders. A Plymouth Railway Station Masterplan has been prepared and a detailed Feasibility Study is being commissioned by GWR on the first phase of delivery which is to relocate the existing decked car and construct a new multi storey car park. This will free up a development opportunity at the gateway to the station identified by the University of Plymouth as a suitable location for a 11,000 sq m education facility.

We have entered into a Memorandum of Understanding between Network Rail, Great Western Railway, Plymouth City Council and University of Plymouth to collaborate in this respect and continue to work together to try and find a market led solution for the site, using the buying power of the public sector as an enabler. In addition, to underpin the MOU, and as the two principal landowners, the Council have also entered into a Bi-Lateral Understanding with Network Rail to actively promote its regeneration.

Revenue funding has been awarded under OPE Phase 3 to progress the multi storey car park feasibility studies with further funding awarded under OPE 4 to ensure a Project Manager resource is available to drive the project forwards and to progress pre planning work. A Growth Deal application to the LEP has been made for £5m to cover deficit funding required to deliver the MSCP and associated public realm.

Key Constraints

Viability, funding and the current economy are this project’s key constraints, which with less than five years left to run until Mayflower 400 commences, cannot be overcome without direct intervention from the public sector. Private sector demand and values are too low to allow this development to come forward as a speculative scheme and delivery relies on deficit funding. Inter City House has particular constraints associated with its redevelopment given that there are operational services for the station within its basement. There are also operational constraints arising from the highly regulated railway industry.

Risks

The key risk at present would be failure to achieve Growth Deal 3 funding.

RAG

Create the conditions for knowledge-based business growth

Key actions:

 Deliver new infrastructure to foster business innovation, including a new City Centre

Innovation Centre

 Facilitate further high-value employment growth at Plymouth Science Park through Phase 5  Unlock new strategic employment space at Plymouth International Medical and Technology Park

Deliver new infrastructure to foster business innovation, including a new City Centre Innovation Centre

The creation of Plymouth College of Art’s Fab Lab digital fabrication laboratory has been reported to the Board previously. Meanwhile innovation infrastructure continues to be delivered as reported elsewhere to the Board – see for example the Plymouth Science Park Phase 5 report below.

Facilitate further high-value employment growth at Plymouth Science Park through Phase 5

1. BACKGROUND

Phase 5 of Plymouth Science Park is a Growth Deal 1 project which includes the erecting of 11 high quality business units as well as altering 5 Research Way by subdividing the building into smaller units. In total this will create 20,258 sq ft of new lettable area and refurbish 9,957 sq ft. The proposal will generate 190 high quality jobs in the city with these outputs being a condition of the funding. In addition the construction work is creating 117 construction jobs and supporting upwards of 10 apprenticeships. The £6.95m funding for the project includes £3m Growth Fund and loans of nearly £2m from each of City Council and the University.

2. ACHIEVEMENTS

Construction - The project started on site as planned at the end of October 2015. The start of construction was hampered with poor winter weather including the wettest December for 50 years and high winds in January when the steel frame was being erected forcing standstill days for the cranes for health and safety reasons. This hampered progress and caused early delays that the contractor (Bam construction) has struggled to pull back. Consequently the project remains three weeks behind schedule with hand over planned for 6th December. Letting - IO Technologies signed a pre-let agreement with PSP on the 25th February. This agreement begins fit out on the 29th Nov 2016 for units 9, 10 and 11 which is 35% of the building. In addition, Web Based has signed a pre-let agreement for units 5 and 6. This is a further 22% of the building let so that in total 57% of the new building is currently pre let. All of 5 Research Way is also now let. Apprenticeships - The contractor is held to achieving at least the CITB standard of training which is a client requirement and a planning condition. A Plymouth University construction management student has been learning on the job whilst employed full time on the site by Bam. A further placement student started in June 2016. Bam are arranging number of site visits for schools to promote the construction industry to students of all ages and an open day took place on the weekend of the 17th and 18th June. Local Labour - The project has targeted local procurement and local labour. To date 75% of the operatives that have worked on the site live within 30 miles of the science park. 56% of all contracts placed have been in the PL post code and 85% have a SW post code. This makes it a building that has been designed and built by local people.

3. FUTURE MILESTONES

Hand over 6th December 2016 Tenants operating 16th December 2016

4. RISKS

 Possibility of claim for losses due to delay in installing a new substation (though this work is now complete)  Failure to achieve full letting of buildings (but very positive position achieved already)

5. RAG

Unlock new strategic employment space at Plymouth International Medical and Technology Park

1. BACKGROUND

Plymouth International Medical & Technology Park (Derriford, Plymouth, PL6 5XP) is situated on the A386, 5 miles to the north of the city centre, with easy access onto the A38 Expressway. It is less than a mile away from both the Plymouth University Peninsular Schools of Dentistry and Derriford Hospital.

Plymouth International Medical and Technology Park (PIMPT) combines an excellent location with the South West’s nationally recognised medical, technology and research and development sectors. Identified as a strategically important site in the region, PIMTP is already home to leading organisations such as the Land Registry and one of only three new radiology academies in the UK. The 33-hectare site offers up to 100,000 sqm of business space for offices, technology, research and development, healthcare and medical related business.

2. ACHIEVEMENTS

Of the original 33 hectare site 26 hectares have been built out or shortly will be. This equates to approximately 34,000 sqm of work space and hotel and conferencing facilities.

To facilitate the Council’s housing growth agenda, approximately 4 hectares of the site was released for the Seaton Neighbourhood/Palmerstone Heights development which will provide in excess of 900 new residential units.

The biggest inward investment to Plymouth for many years has been achieved with US telemarketing company Sitel signing to occupy ‘The Ship’, and creating nearly 700 jobs.

3. FUTURE MILESTONES

Marketing – The remaining c. 7 hectares continues to be actively marketed into the office, technology, research and development, healthcare and medical related business sectors and the City Council are considering undertaking direct development within PIMTP.

4. RAG

Enhance the city’s commercial and residential property offer

Key actions:

 Deliver a city-wide investment prospectus prioritising capital projects with the greatest economic returns  Support delivery of the city’s Housing Plan to ensure new homes support low carbon growth, economic competitiveness and future prosperity

Deliver a city-wide investment prospectus prioritising capital projects with the greatest economic returns

This action is not being pursued as a prospectus but is essentially operational in respect of the prioritisation of capital projects.

Support delivery of the city’s Housing Plan to ensure new homes support low carbon growth, economic competitiveness and future prosperity

Background

Our award winning Plan for Homes was launched in November 2013 and provides a comprehensive delivery framework to respond to the need to significantly accelerate housing supply by delivering a range and mix of well-designed greener homes to meet the city’s housing needs and support Plymouth’s growth agenda.

The Plan for Homes is an ambitious set of proposals to deliver 5,000 new homes over five years from 2014/15; to enable a step change in future housing delivery, contributing to the prosperity and growth of the city and will address a range of known housing needs.

It recognises the economic benefits of housing and its contribution to the achievement of Plymouth’s prosperity and growth. New homes and refurbishment create employment and training opportunities within local communities, attracting and retaining skilled workers and addressing issues of economic inclusion.

Our commitment to deliver 5,000 new homes over five years will create: - 7,923 direct construction jobs and 1,547 indirect/induced jobs totalling 9,471 full time equivalent jobs - £259.8m direct Gross Value Added and £72m indirect/induced Gross Value added totalling £331.8m Source: AMORE (Advanced Modelling of Regional Economies) Tool, The RED Group, Plymouth Business School.

To build upon our achievements and respond to new Government policies, the Plan for Homes has been updated and extended to 2021 with an £80 million commitment to housing investment to support the overall delivery of 5,000 homes over the next 5 years. Launched in March 2016, the 20 new initiatives have been developed and agreed through the cross party Housing Needs Working Group.

Key achievements to date;

Identifying council land for housing - completed a Strategic Land Review; 847 sites were initially identified with further analysis on 184 resulting in 40 sites being recommended for housing.

Released 33 council owned sites totalling over 138 acres of land for housing - exceeding our target of releasing 100 acres of land for housing; planned to deliver 1,649 new homes of which 831 are planned to be affordable homes (51%)

Direct support for self-build and custom build – a programme of 112 units now being implemented, from individual serviced plots to whole sites delivering a range of options

New delivery and funding models - Rentplus has been developed in Plymouth, securing institutional investment to deliver homes targeted at aspirant first time buyers

‘Flagship’ scheme at the Nelson Project – start on site of our custom build scheme involving service veterans who will receive training to help build 24 high quality affordable homes, including 12 flats for ex-service personnel and six flats for learning disability.

Overall housing delivery outputs for 2015/16 include;  1244 new homes completions; 28% increase on last year  Two year cumulative total of 2215; on track to meet 5000 homes over five years  293 affordable homes completions  1282 start on sites; 30% increase and highest since 2006/07  1007 dwellings under construction; 13% increase and highest since 2007/08  95% on previously developed land  55 long term empties brought back into use

Current Priorities  Focus on the delivery of the pipeline of sites in support of the overall commitment to deliver 5,000 new homes over the next five years

 A £1m programme to accelerate plans to bring more empty homes back into use

 Starter Homes programme to support land acquisition of brownfield, stalled and lapsed sites for delivery of Starter Homes as part of a mix of new and affordable homes

RISKS (and mitigation) a) Development viability continues to impact on many schemes that are unable to be brought forward or remain stalled or lapsed. Through the Plan for Homes we are intervening more in the market to acquire stalled and lapsed sites with HCA financial support, with a particular focus on Starter Homes, to unlock sites and accelerate delivery. b) Skills gaps and capacity in construction industry - estimated 10,000 jobs in construction to meet labour demand in the city over next 10 years. Supporting Building Plymouth with housing delivery partners to link people with career opportunities in the local construction sector. c) Maintaining estate regeneration momentum at North Prospect, where financial challenges are slowing down progress and creating uncertainty. Current Government funding is based on loans, but regeneration that requires considerable site assembly costs in low value areas requires grant. We are working with partners to engage with DCLG to make the case for subsidy to help improve viability and accelerate delivery.

RAG

Ensuring Plymouth is ‘well connected’

Key actions:

 Lobby for reduced rail journey times, electrification, track and signalling enhancements, and improved capacity.

 Improve resilience of strategic road and rail routes to and within the peninsula.

 Unlock growth potential of Derriford through delivery of the Forder Valley Link Road and Derriford Junction.

Lobby for reduced rail journey times, electrification, track and signalling enhancements, and improved capacity

BACKGROUND

The South West has fallen far behind other regions’ levels of investment. The spending per head in the South West is £35/per head compared to £97/head average elsewhere1 meaning that the peninsula has received nearly £2bn less than other parts of the UK over the previous 20 years. The last significant investment into the South West rail network was 35 years ago with the High Speed Trains. The increasing disruption and frequency of severe weather incidents has exposed this under-investment and highlighted the fragility of the Peninsula’s rail links with the rest of the UK. There are currently no significant enhancements to the rail network planned by Network Rail for the south west over the next five years.

 Our journey times to London are 3h 22minutes, compared to Newcastle to London at 2h 51minutes, an additional 43 miles.  Our average speed between London and is only 69mph compared to 90mph on the East and West Coast mainlines.  Our earliest arrival into London is 0900, compared with Lancaster with an arrival at 0758, a similar distance to London to that of Plymouth.

The South West economy has many strengths but cannot reach its full potential arising from the constraints on connectivity. Perceived distance from markets deters inward investment. The economy is further restricted by the reality of long journeys, a fragile road and rail network and the dispersed nature of our towns and cities. Better connectivity would promote more employment, more opportunities for investment and greater accessibility for investors.

In 2002 we saw the railway closed for 15 days at Cowley Junction, again in 2014 in was closed for 8 weeks following the collapse of the seawall and cliffs, we have already seen 36 days of further disruption along the route since the line was reopened in April 2014 due to weather conditions and these events are set to get worse. Network Rail predicts that an event at least as serious as 2014 will occur within the

1 Public expenditure by county and substructure tables, chapter 10. www.gov.uk next 25 years and by 2065 this will be every 4 years. It is clear that the cliffs and the seawall will collapse again.

The Task Force has been working on the 20 year plan over the summer for the South West rail improvements. The final report is expected to be completed later this Autumn.

IMMEDIATE PRIORITIES FOR THE SOUTH WEST (2017-2022)

Resilience  Complete the implementation of the committed Somerset levels flood prevention plan  Implement committed river flooding prevention work Cowley Bridge and Hele and Bradninch  Secure funding for development of the Dawlish scheme between 2017 and 2019.The line at Dawlish remains vulnerable and will do so until action is taken to provide resilience. At present options are being developed but the SW needs a commitment to continue detailed design to develop it into a firm delivery plan. Any delay to this design work is not acceptable, as the line could be affected by landslips or inundation at any time. The priority is to secure funding for scheme development between 2017 and 2019  Secure funding for works for the seawall and cliffs resilience scheme to start of CP6 in 2019  Reliability of train service is key, particularly the ongoing problem of Cross-Country “Voyager” trains having to terminate at Exeter instead of continuing to Plymouth, Torbay and Cornwall.

Journey times  The new AT300 trains will be launched by GWR with the December 2018 timetable: we are keen to see that their capabilities are maximised including journey time reductions plus any other benefits that can be realised. The Peninsula Rail task Force (PRTF) will lobby Network Rail and GWR to maximise performance benefits of new trains.  Lobby government to fund the development of the journey time infrastructure improvements options through Network Rail and the PRTF.  Lobby DfT ahead of the next franchise award for 2 trains an hour from Plymouth to London in next franchise allowing further timetable changes and journey time reductions.  Lobby government to extend electrification from Newbury to Bedwyn and onwards towards .

Capacity and Comfort  Additional signalling in Cornwall 2018 to deliver 2 trains per hour to/from Cornwall  On trains, additional investment is required to improve the productivity of business users and the passenger experience for travellers using the new AT-300 fleet: o A travelling office for business - one ticket to provide a seamless and productive journey, including reserved parking, Wi-Fi & mobile connectivity for the entire journey and consistent quality at seat service. o Entertainment and media centres - to provide long haul airline style media entertainment service, Wi-Fi & mobile connectivity for the entire journey, at seat service, increased luggage space.

Future rail investments 2022+

Our rail network has a legacy of underinvestment compared to other parts of the UK, totalling over £2 billion in the last 20 years alone through low spend per head on rail. It is vital that this is addressed to provide parity with other regions through a robust maintenance programme and planned enhancements.

Resilience - £ 500m +

•Develop scheme to prevent overtopping and cliffs resileince in Dawlish area •To provide rolling stock that is capable of operating all year round through Dawlish 2017 to •Rail operators to provide free, reliable and useable wi-fi and mobile signals on all services 2022

•To make the seawall resilient to future breaches and over-topping between Exeter and Teignmouth •To stabilise the cliffs to prevent further collapse between Dawlish and Teignmouth 2022 to •To provide a resilient diversionary route between Exeter and Castle Cary via Yeovil allowing for 2029 local services and diverted London Services at a reasonable frequency

•Deliver resilence works between Exeter and Teignmouth •To deliver estuary flood protection between Exeter and Plymouth 2029 + •Dawlish additional line

Journey Times - £900m to £7bn To deliver journey time savings between London and the South West peninsula includes a range of options, some of which have been costed by Network Rail: •Develop High benefit infrastructure schemes from GRIP 2 to GRIP 3 -£15m •December 2018 timetable reductions of 5 minutes to Exeter, 6 minutes to Plymouth/Paignton and 14 minutes to Penzance. (GWR stakeholder franchise improvement briefings 2015) By 2017 to •2 direct trains per hour between Plymouth and London, allowing revised calling patterns east of 2022 Exeter, reducing journey times by up to 10 minutes to Plymouth and allowing improved connectivity at points along the route, like Westbury

•Identified potential infrastructure improvements from the 'Speed to the West study', costed as below: 2022 to •14 minute improvement to Plymouth £1.5bn between Reading and Taunton, Newton Abbot and and Daignton banks costing £1.5bn 2029

•10 minute improvement to infrastructure Hungerford, Westbury and Newton Abbot £2.4bn •3 minute improvement to infrastructure between Reading and Penzance £2.2bn •6 minute improvement to Plymouth through Dawlish additional line £2.3bn 2029 + •£2.3bn new 225kph line between Reading and Taunton delivering 30 minutes journey time savings •New fleet of tilting trains saving 30 minutes at £2.7m / carriage

Capacity – £100m + We need capacity on both our trains as well as our network, with diversionary options to provide a continuous and reliable service for passengers. Some improvements will be outside our area but will benefit a far wider catchment, such as Newbury.

Train and network capacity

Established delivery mechanisms - Franchises and services •Equivalent regional rail investment per head as the regional average •Provide high quality ‘travelling office’ for business with new trains as interim measure pending journey time improvements 2018 to •Provide a step change in customer experience and deliver services that deliver economic growth to the 2022 region, including 2 direct trains per hour to London from Plymouth

•Replacement of all rolling stock •Station upgrades to provide passenger facilities fit for the 21st Century, including accessibility 2020 to •Modern and user friendly ticketing solutions that encompass the latest technology 2040

Note: The final outcomes and timeframes shown here may change

ACHIEVEMENTS a) Rail Development Manager appointed by PCC, remit to programme manage the PRTF report delivery in July 2015.

b) Interim PRTF report delivered Oct 2015 outlining the direction for the 20 year plan.

c) 13 workstreams developed and delivered across the PRTF partners to inform the 20 year report, including a £500k infrastructure enhancements GRIP 2 study for faster journeys.

d) From May 2017 an earlier direct first inter-city service to the South West at c.0637 from , arriving in Exeter by c.0845, Plymouth by c.0945 and Penzance by c.1140.

e) With new Hitachi trains the fastest Paddington – Plymouth services are currently planned to be 3 hours 3 minutes with the average being 5-6 minutes faster than present.

f) Commitment to cascade ‘newer’ diesel trains to provide regional/local services. May 2017/Dec 2018.

FUTURE MILESTONES a) Publication of the PRTF 20 Year Plan for rail improvements in the South West.

b) Ongoing engagement with the DfT, Network Rail and train operating companies to push for improvements in South West Peninsula rail services.

c) Clear outputs identified for franchise renewal in 2018/19

d) PRTF will work with the DfT on the franchise mapping options for renewal in the South West

e) Implementation of Network Rail’s preferred solution to tackle flooding at Cowley Bridge and Staffords Bridge through the removal of weirs.

f) Holding the government to account on their commitments for investing in the Dawlish/Teignmouth coastal route.

g) Pushing the government to commit specifically to provide improved resilience East of Exeter through lengthened passing loops and tackling the flooding on the Somerset Levels.

RISKS 1. Commitments for weather related resilience mitigation measures are not delivered due to budgetary issues with the Control Period funding rounds. A longer period of service reliability and lack of significant disruption could make it easy for decision makers to prioritise other areas. Mitigation – Funding is defined by central Government, PRTF 20 year plan will outline the requirements and lobbying to central government is likely to deliver funding, the only question will be at what level.

2. Decision makers continue not to prioritise investment in South West Peninsula rail connectivity and/or focus only on investing in the local rail network and not investing in the wider strategic connectivity. Mitigation – PRTF 20 year plan will outline strategic requirements for the region which can be used as a blueprint for the future along with PRTF working with the DfT on franchise options

3. Ongoing funding for PRTF will be required to continue to provide support and lobbying for the requirements of the 20 year plan Mitigation – Local Authorities still have the ability to influence the DfT through franchise consultation, albeit at a lower level

4. The productivity gap widens in the South West as investment is focused to better connected locations and other cities benefit directly and indirectly from High Speed 2. Mitigation – PRTF 20 year plan, if funded, will reduce this impact

RAG

Improve resilience of strategic road routes to and within the peninsula

BACKGROUND

Highways England’s route strategies are one of the key steps of research required for developing the Department for Transport’s Road Investment Strategy for Road Period 2, covering the period 2020-2025. Highways England will use this information to help us better understand the performance of our roads, shape our investment priorities to encourage economic growth and improve the service we provide to road users. Highways England has been developing its Route Based Strategies for the South West in collaboration with local authorities and Local Enterprise Partnerships (LEPs), helping to identify problems in traffic flow on the network.

The evidence gathered from the strategies will allow a network-wide assessment of problems and challenges, provide an overview of what steps may need to be taken to address these problems and future challenges; and be used to identify and prioritise potential solutions to be delivered during the next spending review period and beyond.

Following feasibility work, the Government was able to announce in the 2014 Spending Review a commitment to upgrade the A303 to dual carriageway.

The Government recognises the importance of the A303/A358 corridor in terms of its role in providing access to the South west and the role it plays in facilitating the movement of goods and people, and its contribution to the economic performance of locations along the corridor, particularly the wider economic benefits to the South West economy.

The Department for Transport and the Highways Agency have worked closely with the South West local authorities on the details of the analysis and the business case for potential investment, providing assistance and views on the methodology adopted and views on what further analysis may be necessary.

ACHIEVEMENTS

PCC submitted an initial response to Highways England’s Routes Strategy in June 2016

PCC has submitted bids to Highways England’s Growth and Housing Fund for funding contributions towards 4 major highway schemes which will benefit the A38 trunk road: a) Marsh Mills to Forder Valley Interchange b) Forder Valley Link Road c) Woolwell to the George Improvement Scheme. These three bids are currently on hold pending request from Highways England for further information and a workshop between partners. d) A fourth submission has been submitted by DCC to improve the south side of the junction at Deep Lane, adjacent to the Sherford New Community and to provide the first phase of the Deep Lane Junction Park and Ride site.

Department for Transport commitment to invest along the A303 between now and 2021 to create a world class Expressway to link the SW with the south east, giving road users simpler, faster and more reliable journeys. It will also boost the region’s economy:-  A303 Amesbury to Berwick Down (including Stonehenge tunnel)  A303 Sparkford to Ilchester  A358 dualling (M5 to A303/A358 Southfields junction)

Other Major schemes added to Highways England’s programme are the:  upgrading of the M5 Junction 23  A30 Chiverton to Carland Cross in Cornwall

The prioritisation of upgrading M5 Junction 25 through the Heart of the South West LEP second Growth Deal.

Across the South West, Highways England will also invest a further £90 million during 2015/16 to resurface roads, repair and renew structures like bridges and viaducts; and improve safety barriers.

DCC launched a public consultation on options for improving the A30 between Honiton and Illminster. DCC are looking for support from Highways England to take this scheme forward.

FUTURE MILESTONES

November 2016 PCC attending Highways England’s South West Regional Stakeholder.

Assembly of baseline data for the A38 to go into Highways England’s consultation on Roads Investment Strategy RIS2 (2020 – 2025).

RISKS

 The A303 passes through the Stonehenge World Heritage Site - scheme cost increases. Mitigation - de-scoping of the programme so that the scheme remains deliverable, affordable and still offers value for money.

 Ability to make a business case for the upgrade of A38 as part of RIS2. Mitigation – Local Authorities and LEPs to outline strategic requirements for the region as part of the ongoing stakeholder engagement with Highways England and DfT to influence decision making on schemes and total funding available

 Growth and Housing Fund is a national fund limited to £100m over 5 years. Mitigation – Hold workshop with funders at Highways England to ensure scheme design maximises benefits and meets funding criteria.

RAG

Unlock growth potential of Derriford through delivery of the Derriford Transport Scheme and the Forder Valley Link Road

BACKGROUND

Derriford is a key economic centre within Plymouth, with major employment sites such as Derriford Hospital, the University of St Mark and St John and the Plymouth Science Park located in the area. The A386 corridor between Derriford and Manadon Roundabouts is heavily congested, with over 50,000 vehicle movements per day on Manadon Roundabout (the second busiest junction in Plymouth).

Plymouth’s northern corridor, predominantly around the A386, is a key location for population and business growth, with planned developments expected to provide around 9,000 new jobs in the area, supported by approximately 3,000 new homes. This level of growth is projected to lead to an increase in gross value added (GVA) of at least £343.5m per year. In order to achieve and support this growth, the Derriford Transport Strategy identifies the requirement for the development of key transport infrastructure projects, which include the Derriford Transport Scheme (DTS) and the Forder Valley Link Road (FVLR).

The DTS provides targeted capacity improvements at Derriford Roundabout and the Tavistock Road / William Prance Road junction along with complementary bus priority measures and walking and cycling improvements. These improvements form a critical element of the infrastructure required to support the growth agenda, allowing new developments to be built and facilitating new jobs coming forward.

The scheme is the centre-piece to a package of measures designed to allow the wider growth in the Derriford area to come forward. The scheme also provides major capacity enhancements on William Prance Road itself to link in with the planned Forder Valley Link Road scheme. Scheme cost £13.289m.

Forder Valley Link Road (FVLR) is a proposed 1 kilometre road linking William Prance Road, in Derriford, with Forder Valley Road and Novorossiysk Road, providing an alternative route between the A38 and Derriford. The link road will be supported by a bridge over the Bircham Valley and a larger signalised junction at the Forder Valley Road and Novorossiysk Road intersection. The scheme will also include walking and cycling facilities throughout. Scheme cost £33.5m. The A38 at Manadon and the A386 Tavistock Road experience very large volumes of traffic throughout the day and are often heavily congested. FVLR will reduce traffic delays between the A38 and Derriford by providing an additional route from the east to the north of the city. It will also improve access to key destinations such as Derriford Hospital, the University of St Mark and St John and Plymouth Science Park.

ACHIEVEMENTS

 Contractor was appointed to deliver Derriford Transport Scheme (DTS) in March 2016.  Full Business Case for Derriford Transport Scheme approved by Local Transport Board and Funding Agreement signed with the Local Enterprise partnership in March 2016.

 Programme Entry approval was secured from the Department for Transport for FVLR in Summer 2015.  Allocation of up to £22.5m for FVLR approved by the Local Transport Board, February 2016  Public consultation on the FVLR took place in October 2016

FUTURE MILESTONES (proposed)  Works on the DTS January 2017 – March 2018  Outline Design for FVLR April – September 2016  Full Planning Application submission Spring 2017  Final Approval Business Case submission to DfT Summer 2017  Detailed Design and Construction Autumn 2017 – 2020