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Connecting the Country Annual Report and Accounts 2019

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Connecting the Country Annual Report and Accounts 2019 Connecting the country Annual report and accounts 2019 1 Highways England Annual report and accounts 2018-19 (For the financial year ended 31 March 2019) Presented to the House of Commons, pursuant to Section 7 of the Government Resources and Accounts Act 2000 Ordered by the House of Commons to be printed July 2019 HC 2319 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2019 3 Contact us At a glance Traffic England: We believe that connecting OUR RIS1 DELIVERY http://www.trafficengland.com people builds communities, 4,300 SO FAR IN NUMBERS creates opportunities and MILES helps the nation thrive. We aim of motorways and major A-roads Customer Contact Centre: to provide all our customers £6.3bn 0300 123 5000 with safe and reliable journeys carrying [email protected] VALUE of road improvements through the way we operate, maintain and enhance one 4m Contact Centre details published at: of the most advanced road VEHICLES every day £848m https://www.gov.uk/government/organisations/highways-england networks in the world. EFFICIENCY savings Our roads carry over Twitter: 2/3 OF ALL FREIGHT 44 https://twitter.com/highwaysengland ROAD SCHEMES or @highwaysengland completed or under construction Our major schemes deliver over App: £2 BENEFIT 100 Live Traffic Info: get it from Google Play, iTunes or BlackBerry World to the UK economy for every SAFETY SCHEMES completed £1 INVESTED Sectors heavily reliant on our roads OUR RIS1 SOCIAL IMPACT employ SO FAR IN NUMBERS 7.4m PEOPLE 109 and contribute BIODIVERSITY SCHEMES £314bn completed TO THE UK ECONOMY © Crown copyright 2019 951 NOISE SCHEMES completed This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government-licence/version/3 Where we have identified any third party copyright information you will need to obtain permission from the 101 copyright holders concerned. CYCLING/WALKING SCHEMES completed This publication is available at www.gov.uk/official-documents. Any enquiries regarding this publication should be sent to us at [email protected] Infrastructure for ISBN 978-1-5286-1445-0 CCS0619391572 07/19 38,000 NEW HOMES Printed on paper containing 75% recycled fibre content minimum Printed in the UK by the APS Group on behalf of the Controller of Her Majesty’s Stationery Office HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2019 4 5 Highways' highlights Contents 08 Strategic report Front cover: Chairman’s statement 10 Strategic report Our responsibility Chief Executive’s strategic review 12 A14: INCURSIONS Our business model 14 DELIVERY WORKING GROUP: Our marketplace 16 SAFETY Our financial review 20 Our strategic performance: KPIs 24 32 69 Our delivery 30 Our risk management 56 Our principal risks and uncertainties 60 MANCHESTER SMART Strategic report Our responsibility MOTORWAYS M5 OLDBURY SPACE INVADERS: Viability statement 65 Read more on page 37 VIADUCT: SAFETY 66 Our responsibility A14 CAMBRIDGE TO DELIVERY Safety first HUNTINGDON: 68 A MAJOR NEW BYPASS Our customers 76 SOUTH OF HUNTINGDON AND 40 74 Our people 84 UPGRADES TO 21 MILES OF Our social impact 90 THE A14 Our responsibility FOOTBALL Our governance M5 OLDBURY VIADUCT 96 A14 CAMBRIDGE TO ASSOCIATION (FA): Read more on page 40 HUNTINGDON Our Board 98 CUSTOMERS Case studies Read more on page 32 Corporate governance report 100 Committee reports 108 Major schemes 81 Nominations 108 Safety 108 Our responsibility Audit and risk 110 MDP:CONNECT: Investment 112 Remuneration report 114 PEOPLE LOWER THAMES Effectiveness statement 116 CROSSING Directors’ report 120 Read more on page 34 A303 STONEHENGE 85 124 Accounts Read more on page 34 Independent Auditor’s report 126 Our responsibility Financial statements 134 NOISE POLLUTION: Glossary SOCIAL IMPACT 180 92 Please visit our online annual report at www.highwaysengland.co.uk/annualreport DIGITAL for PDF downloads and further information. HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2019 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2019 6 7 Strategic report The Strategic report was approved by the Board Strategic report on 9 July 2019 and signed on its behalf by: JIM O'SULLIVAN CHIEF EXECUTIVE HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2019 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2019 8 9 Chairman's statement Strategic report Highways England made good Home Safe and Well initiative. has transformed the customer that the company’s performance We noted progress on the items Planning for Brexit progress in the year to 31 March This internal scheme focuses on experience of other modes of was positive. To achieve all the highlighted last year and identified Over the past year, we have 2019, delivering to plan and with the wellbeing of our people, those transport and we are doing the targets all the time would indicate two areas for focus in the coming talked to the DfT about the risks strong financial results. We are who work for our contractors, and same for our roads. We have that they are too easy; we accept year: customer service and associated with leaving the not complacent and recognise others impacted by our activities. more to do in 2019-20 and into that there is still more for us broader stakeholder engagement, European Union (EU). We have that much remains to be done the future. to achieve. particularly through better reviewed Government's Brexit in the final year of this five-year Progress in these areas has collaboration with our commercial notices, considered the potential road period. allowed us to devote more time Delivery Governance customers. impact of EU Exit on our business, to aspects of road safety over and continued our work in Kent on Highways England operates, which we have less direct control. We spent £3.8 billion on the SRN Our Board has evolved over the Looking ahead solutions at the ports. maintains and enhances the I believe that through collaboration in 2018-19, over £10 million per course of the year. David Hughes, strategic road network (SRN) − with road users and, in the case of day. Of this, £2.6 billion relates who chaired the Audit and Risk Planning for RIS2 In other parts of the country, we some 4,300 miles of motorways business drivers, the organisations to capital investment in our road Committee, left in August 2018, In January 2018, in response have reviewed our plans with and major A-roads, carrying who employ them, we can play network, and £1 billion on its and Simon Murray, who chaired to Government's Draft Road ports and highway authorities. 4 million vehicles every day. The an important role in reducing the maintenance and operation. We the Investment Committee, left Investment Strategy (RIS2), we We have tested our contingency SRN plays a critical role in the number of people hurt on the have developed our financial and in March 2019. I thank David submitted our Draft Strategic plans for bad weather and country’s society and economy, country’s roads. I am particularly operational control systems such and Simon warmly for their Business Plan for the second major incidents against likely connecting families and friends proud of our Driving for Better that we have been able to manage contributions and am pleased road period (2020-2025) for Brexit-related scenarios of and enabling businesses to trade Business campaign, which has opportunities and risks across our to welcome three new directors: review by the Office of Rail and disruption, considering the needs nationally and across the globe. already signed up over 320,000 investment portfolio, and to deliver Kathryn Cearns joined us in April Road (ORR; our Monitor) and the of people using our roads to drivers and 225,000 company within the funding provided. 2018 and now chairs the Audit and Department for Transport (DfT; get to the ports as well as those Our three imperatives − safety, vehicles. As examples of what Risk Committee; Janette Beinart our Shareholder). going elsewhere. While we cannot customer service and delivery − can be achieved amongst our We have been working closely joined in January 2019 and now avoid all disruption, we are have remained constant since we own contractors through this with Government to meet legal chairs the Investment Committee; Following the 2018 Autumn working to minimise the impact were established in 2015. These scheme, Amey has reported a requirements and improve air and Carolyn Battersby joined Statement, we expect an allocation on our customers. shape our foundation and our 38% reduction in at-fault accidents, quality for the communities who in February 2019 as the new of £25.3 billion of funding for focus, keeping people moving and WJ Group has reported a live beside our roads. We have an Shareholder-appointed Director. the next road period and have Finally, I thank every colleague in today, and moving better tomorrow. 20% reduction in incident rates, ongoing programme of research, proposed a programme of Highways England, and everyone and a 59% reduction in traffic are supporting local authorities We are committed to achieving a investments that we believe is in our partner organisations, for Much remains to be done as we offences. Our campaign works to in the introduction of clean air culture of equality, diversity and deliverable, good value for our each and every contribution to the work to complete Government's spread these advances as widely zones and are developing plans to inclusion. These changes to the customers and good for tax payers. progress made this year. first five-year Road Investment as possible. improve air quality in the quickest Board show our progress regarding Our Draft Strategic Business Plan Strategy (RIS1) and prepare for the ways available to us. These gender, and our Responsibility also outlines how we will drive opportunities and challenges of the measures include installing new Customer service section of this report shows our efficiencies over and above next road period.
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