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. barriers, encouraging cleaner fuels wider, employee‑led progress those achieved in the current Our business has strong public and improving traffic management. across Highways England. road period. Safety service roots in doing the best for Highways England has been society. We are adding to our DNA After last year’s The DfT is due to publish the final We are focused, company‑wide, set challenging targets. Having COLIN MATTHEWS CHAIRMAN a culture of customer service − a externally‑facilitated evaluation of RIS2 in the autumn, after which on the safety of all those who drive reviewed progress over the year to dedication to meeting the needs of Board performance, our review we will finalise and publish our or work on our roads. I am pleased date (our results are reported on individual road users. We know that in 2018‑19 was internally led. Strategic Business Plan. to report improvements this year, the provision of timely information pages 24-28), the Board believes including the launch of our
HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2019 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2019 10 11 Chief Executive’s strategic review Strategic report We are now four years into role of education and compliance In 2018, we also started to use ensuring that we hit our in‑year engagement to 52% from 46%, across five areas: environment; delivering Government’s £15 billion measures alongside traditional Twitter to provide customers with targets and keeping us on and employee enablement to cycling, safety and integration; RIS1 for 2015-2021. This is the engineering interventions. We real‑time information across three track to meet our overall RIS1 56% from 52%. air quality; growth and housing; largest investment in our SRN in a have also updated a number of regions. Customer feedback was commitments, as we missed our and innovation. generation, through which we are our Design Manual for Roads positive, and the remaining three 2018‑19 delivery plan commitment As part of our transformation, delivering benefits to our customers and Bridges (DMRB) standards, regions went live in March 2019. of the: we remained focused on This year we published our first and the economy, while minimising to make it easier for designers our Highways England 2020 Cycling and Accessibility Report. our impact on the environment and to understand road safety Delivery M20 junction 10a upgrade in Organisational Plan, making We have made significant progress local communities. As more of our considerations, and to ensure 2018‑19 the changes we need to enable in integrating cycling schemes move into construction, they are embedded within We opened seven schemes in us to deliver current and future and accessibility needs into we remain wholly focused on design decisions. 2018‑19 and this has added Some of our other schemes in investment programmes. The plan scheme design, and are working our three imperatives – safety, around 60 extra lane miles of work this year, and forming case contains cross‑organisation closely with stakeholders to deliver customer service, and delivery – Customer service capacity to the SRN. These studies within this report, are: the and directorate‑led initiatives in schemes which suit the needs which underpin everything we do. include: A14 Cambridge to Huntingdon (our key areas, such as capability of communities. Our satisfaction score of 88.4% front cover and flagship project for development, culture change Safety this year is slightly below our M5 junctions 5 to 7 upgrades 2018-19); the A303 at Stonehenge; and estate and capital portfolio What next? target. It is improving though we A50 Uttoxeter (Project A) and the M5 Oldbury Viaduct. management. Safety remains our foremost are disappointed and will redouble M6 junctions 16 to 19 smart I am proud of the achievements concern. Since 2012, the number our focus on improving the overall Read more about these on pages We have built a culture of equality, and progress that our people and motorway 32, 34 and 40 of people killed and seriously experience for our customers and diversity and inclusion, including company have made in the last A19/A1058 Coast Road injured (KSI) on the SRN has communities in 2019‑20. through a number of staff networks. year. I know that there is – and junction improvement We achieved £362 million of varied. Headline figures for 2018 Important steps forward have been will always be – more work to do. efficiency this year, against our show an overall reduction in the Our Customer Service Strategic M1 junctions 23a to 24 smart made in two areas: our LGBT+ As a business, we are committed in‑year target of £345 million. number of reported collisions Plan details our commitment to motorway community, and our Armed Forces to continuous improvement, and Efficiency is the economic and casualties, with KSI cases improving the experience of all our M1 junctions 24 to 25 smart and Veterans Group. You can find I look forward to seeing what the measurement of how much we slightly increasing compared to customers, taking us into 2020 and motorway out more on pages 88-89. future holds. the same period in 2017, although beyond. We want our customers have saved by ensuring optimal to know that we care about their use of all our resources, such as Social impact the number of fatal casualties has and our missed commitment from We will complete delivery against journeys, and for our people on time, money, labour, and materials. reduced by around 10%. last year, the: RIS1 in the coming year. Having and off road to understand their We are now reporting a cumulative We have introduced a submitted our Draft Strategic Our Chairman talks about one contribution to customer service. position of £848 million within social impact section to our M60 junction 8 to M62 junction Business Plan in January 2019, road user safety campaign that we the current road period, against annual report for the first time this 20 smart motorway we are preparing for the next road are particularly proud of: Driving Following on from trials in 2017‑18, our target of £722 million by year, to introduce some of the period and expect our plans to be for Better Business. Another where we safely increased the Read more about the Manchester March 2019, and have met our work we do across our business signed off later this year. successful safety campaign – speed limit for some roadworks smart motorways scheme in our Year 4 efficiency targets across to promote positive environmental, our most impactful to date – was to 60mph, this year a 60mph North West roads programme the business. social and economic outcomes for Don’t be a Space Invader; you can limit has been used during the section on page 37 everyone, and to ensure that we read more about this on page 74. commissioning stages of our People operate sustainably, improving the We also began work on one smart motorways schemes. This quality of life for current and future scheme ahead of schedule and We launched our Guide to Road is to address one highly sensitive We are pleased with the generations. this is now due to open for traffic Safety Route Treatments in May issue for our customers: how much year‑on‑year rise in the satisfaction late 2019, the: 2018, providing the latest guidance time vehicles spend in roadworks levels of our people, with our We are investing £675 million JIM O'SULLIVAN CHIEF EXECUTIVE on following the safe systems (usually 50mph on motorways) and annual survey identifying that through our RIS1 ring‑fenced A1 North of Ellingham approach and highlighting the the associated delays. we have increased employee funding, with Designated Funds
HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2019 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2019 12 13 STRATEGIC REPORT: OUR BUSINESS MODEL STRATEGIC REPORT: OUR BUSINESS MODEL
Highways England operates, maintains and enhances places creates memories, connecting workers with Our business model: England’s motorways and major A-roads. We exist jobs creates opportunities and connecting businesses to connect the country. We believe that connecting helps our nation thrive. driving our value people builds communities, connecting families with
Our imperatives Safety Customer service Delivery Strategic report and values: Our values how we work 1. This is our first imperative. 2. We are committed to 3. We are delivering the biggest upgrade to Our three This means safety for all making our customers’ the SRN in a generation. Our approach describe how we imperatives set who use or cross our roads journeys as safe, reliable will always be to work in an efficient and do it, how we treat (motorists, pedestrians, and smooth as possible. effective way that provides value for out what we do as people, and how cyclists and equestrians), money and minimises disruption. We an organisation for our people, and for the aim to positively impact the economy we do business communities alongside them. and leave a positive lasting legacy on communities and the environment.
Our mission to connect Our value: creating public benefit the country: what we do Over Our major schemes £1 = £2 INVESTED BENEFIT
Our KPIs set targets for – and then measure – how well we perform our eight core business objectives for public benefit: 1. Make the network safer, reducing numbers of killed or seriously injured 2. Improve road user satisfaction 3. Ensure network availability 4. Clear motorway incidents 5. Reduce noise 6. Enhance the environment 7. Achieve efficiency, saving on capital expenditure 8. Keep the network in good condition
Read more about our KPIs on pages 24-28
Our values Our resources Technological, and relationships: Financial Collaborative Our physical and what we rely resources relationships people natural resources upon Funding from Government Key industry partnerships, Our diverse workforce to manage our Material, non‑financial resources to run our business stakeholders and our supply risk and deliver our strategy, performing to deliver construction work and chain to support our delivery in accordance with our values customer service improvements
HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2019 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2019 14 15 Our marketplace Strategic report We work within a changing environment, and there are Market conditions within the construction increasing volumes of traffic, a growing population many external factors that may impact how we operate, and infrastructure industries and an increased risk of extreme weather events. maintain and enhance the SRN, as well as how we run In a new study announced by the Chancellor in the our business. We identify these factors as: the national Policy Autumn Statement 2018, the National Infrastructure economic and political climates; issues of social We look to align with, and support, relevant Commission is set to examine the resilience of the concern; the market conditions within our industry; Government policy – including Government's UK’s infrastructure. It will publish its final report and and global technological developments. Industrial Strategy, which aims to increase productivity recommendations in 2020, and we will respond and drive growth across the country. Within accordingly to ensure that our roads, operations and Our eco‑political landscape transport, we work closely with the DfT and other risk management processes can adapt to meet with partners on emerging issues, such as the resilience Budget national demand. of the transport network against the backdrop of In the Chancellor’s Autumn Statement 2018, Government announced that funding for the SRN from 2020 to 2025 would be through the National Supply chain We need to remain aware of the possibilities of supply Roads Fund, which is due to reserve £25.3 billion of Issues of social concern chain shortages, which could arise from a number its expected £28.8 billion revenue for investment in Companies are now expected to behave with greater Our supply chain needs are influenced not only by of issues affecting our market, such as capacity the SRN from Vehicle Excise Duty within England. integrity, fairness and transparency, and to actively planning for the second road period and beyond, constraints within the construction industry, in terms engage with, and contribute to, society. Highways but also by wider considerations around the current of access to local labour, and the risk of contractors Such funding will create a materially stronger link England is no exception. Our strategic progress must state of, and future trends in, the construction and and supply chain organisations collapsing due to the between our customers and our income, potentially be sustainable for our Shareholder, employees and infrastructure industries. industry’s low margins. marking a shift in public expectation. Road users customers, as well as the communities we serve, the who feel that they are directly paying for a service will We will need, for example, to further develop the country more broadly, and the natural environment. We carefully managed the aftermath of the failure of have increased expectations around performance, supply chain so that systems and communications Carillion in early 2018, and we must ensure our supply day‑to‑day visibility on the roads and levels of We welcome this challenge and, this year, we have become more integrated. This will involve a mix of chain approach enables us to securely meet our future customer service. introduced a dedicated Responsibility section to established technology firms, start-ups and small and needs. Specific improvements are wide‑ranging, our annual report to show how we are consistently medium-sized enterprises (SMEs). with examples including increasing awareness of improving how we do business. Brexit Commercial models are also becoming more the proportion of business awarded to individual Early in 2018, as part of Brexit contingency planning, suppliers, expanding the existing supply chain, Going greener for our environment collaborative and integrated, with emerging the DfT and ministers asked us to consider a number models being promoted through Government and strengthening supplier financial viability testing and of possible options to assist with planning for Government has committed to achieving reductions in cross‑industry initiatives. Several examples of where due diligence, and introducing our Routes to Market potential traffic congestion, focused on Dover port the UK’s greenhouse gas emissions and improvements these models have been used are listed below. and Asset Delivery approaches. and Eurotunnel. This brought forward the need for in air quality. We are required to contribute towards the Operation Brock to go ahead as a priority. Greening Government Commitments set for the DfT, currently targeted with a 43% reduction in emissions by IPA – Programme to transform infrastructure Project 13 – An industry-led movement performance, including coordination of collaborative to improve the way high performance Read more about Operation Brock on page 55 2019-20. We have committed to ongoing improvement Infrastructure relationship initiatives infrastructure is delivered based on an and Projects in environmental outcomes. We work with the DfT, the Authority enterprise approach Brexit could impact many industries and, at this Department for Environment, Food and Rural Affairs, stage, it is difficult to conclude the exact impact it the Office for Low Emission Vehicles, and others to help Transport Infrastructure Efficiency Strategy – Anglian Water @OneAlliance – Integrated The DfT-led transport sector initiative, including alliance involving a shared programme pool will have on Highways England. We have analysed improve air quality, lower carbon emissions and reduce Department promotion of collaborative relationships and gain share mechanisms potential impacts on our supply chain resources, our impact on the natural environment. for Transport labour market and IT systems. We believe we are reasonably positioned to deal with any short‑term Read more about our people on page 84, our impacts. Over the longer term, material costs and lack customers on page 76, and our social impact on Read more about Routes to Market on page 49, and our new approach to Asset Delivery on page 50 of skilled labour may increase with a knock‑on effect page 90 on contract value.
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Accelerating technology Trends in the infrastructure sector Top trends in construction technology across the sector In 2018‑19, there were significant breakthroughs Technology is changing the way infrastructure is in construction innovation across the sector, designed, delivered and operated. Schemes will particularly around digital design, off-site and increasingly be designed digitally using 3D Building modular construction and smarter materials. We have Information Modelling (BIM). We expect to become summarised the top construction technology trends on progressively less reliant on traditional design the following page. services through the second road period and beyond, with corresponding improvements in safety and Clearly there is a significant opportunity across productivity. the transportation industry as a whole to enable innovation. Smart construction is rapidly emerging, Increased real‑time data will provide opportunities to Strategic report bringing clear potential benefits to designers, transform the management of the SRN, and to meet contractors and asset owners. the growing demand for data to support improved Drones journey planning, goods distribution and the transition Robotics Trends in the automotive sector to CAVs, maximising existing capacity and helping us To support the increasing number of electric vehicles to prioritise future projects. and connected and autonomous vehicles (CAVs) on our roads, we will need to manage a change in road infrastructure over the coming years. Electric vehicles, for example, will require a network of charging points. We are both planning for, and already responding to, Big data these automotive developments. Mobile and cloud software Read about our Digital Roads vision on page 46 and our Innovation schemes on pages 72-74
Wearable Technology Green design
Augmented reality
Machine Off-site learning construction Building information modelling (BIM)
Read about our risks and risk management on pages 56-63
HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2019 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2019 18 19 Our financial review Strategic report We have achieved our financial targets for 2018-19. We have held underlying expenditure flat, even as our Financial performance The remainder of our capital funding was spent mainly We met our Delivery Plan commitments and remained capital portfolio has grown, creating £362 million of In 2018‑19, we spent £3.8 billion to operate, maintain on IT and estates projects. within our £3.8 billion funding. As planned, our capital efficiency savings over the past year. and enhance the SRN, which equates to around We rely on effective portfolio management to remain spend has increased as we progress through the £10 million every day. current road period, and as more projects enter We are entering the final year of the road period, clear within our overall capital funding for each road period, on our financial risks and opportunities, and with an construction phase. We invested £0.4 billion more this We prioritise our work programme to maximise the and to understand and manage the rate of delivery year, and capital spending is 37% greater than three affordable work programme linked to full delivery of year by year. Part of the way we do this is by knowing RIS1 commitments. benefits within our funding constraints. Our robust years ago. financial management framework means we manage the project levers we can pull to deliver against our opportunities and risks across the capital investment targets and stay within our funding. portfolio and remain within the funding provided. Our key financial successes in 2018‑19 include:: We have long‑term funding agreements, and our During the year, we agreed with the DfT that we would annual budgets reflect how much investment is bring forward £60 million of funding from the final year expected in each year. We have a flex‑funding of the current road period to better match the delivery agreement in place with HM Treasury, which allows profile of our capital plan. This meant we did not us to bring forward up to 10% of our funding between need to scale back our investment, which would have Delivering the planned capital investment programme years. This is an important mechanism to keep costs created unnecessary delays. within our funding £3.8bn and funding aligned, ensure our schemes start Capital funding promptly and open for traffic on time. We nevertheless to operate, maintain aim to remain within the original profile of spending and enhance the SRN Our capital funding from Government was £2.6 billion over the five‑year road period. Creating efficiencies to keep within flat operational in 2018‑19 funding levels from the total £3.8 billion in 2018‑19, compared to £2.2 billion the year before. Our capital programme Operational expenditure is split mainly between work to enhance and renew our network. Enhancement projects took the majority Operational expenditure Achieving year‑end results (outturn) within 1% of of our capital funding this year, £1.7 billion, and this supplementary estimates is set to rise again next year. This is because many of Operational expenditure our enhancement schemes in the planning phase at (resource departmental Funding Outturn Variance This equates to the start of the current road period have now entered expenditure limit £m £m £m the construction phase. excluding depreciation) Achieving cash outturn for the year within 1% of target £10m 1,096 1,101 (5) a day Capital funding Our operational budget for 2018‑19 was £1.1 billion. Total capital investment This is similar to the year before, but with small Funding Outturn Variance Delivering efficiency savings ahead of RIS1 trajectory (capital departmental increases to cover new work on managing the Severn £m £m £m expenditure limit) and Dartford river crossings. 2,589 2,650 (61) We focus the majority of our operational spend on the Protecting and increasing the value of the SRN through maintenance of our network and on service payments We invested our maintenance work and enhancement programme Scheduled renewals work accounted for £0.7 billion of for schemes that were privately financed in the past our capital funding, which we invested in maintaining (PFI schemes). As our underlying funding remains flat, £674m our structures and road resurfacing. This work is we have to find efficiencies to absorb the impact of on the renewal of essential to ensuring that our network operates Refinancing the M25 PFI contract, leading to the SRN inflation and other cost pressures. undiscounted savings of £149 million across its lifetime safely, as well as reducing the need for more costly interventions later.
HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2019 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2019 20 21 STRATEGIC REPORT: OUR FINANCIAL REVIEW STRATEGIC REPORT: OUR FINANCIAL REVIEW
New cost pressures in 2018‑19 included: Efficiency Supporting our supply chain Operational We have a target of £1.2 billion of efficiency savings Cashflow is important for businesses of all sizes, an £11 million cost reduction challenge set by budget for over the current five‑year road period. The funding for and we make a real difference to the financial health the DfT our capital plan is provided on a post‑efficient basis, of our supply chain by paying quickly for work that the extra cost of running smart motorways 2018‑19 meaning we have to make these efficiency savings to has been done. We want contractors to be confident (£2 million), which need more traffic officers, deliver our commitments. about working with us, and we are signed up to the and use more electricity through gantry signage Prompt Payment Charter. We paid 90% of supplier higher pay awards for front‑line operations staff The rate at which we need to find and deliver invoices within five days of receiving a valid invoice (£2 million) (£m) efficiency savings increases year-on-year as more and 99% were paid within 30 days or in line with their Capital improvement 1,713 projects reach design maturity and enter into contract terms. We found matching savings which enabled us to Asset renewal 674 construction. Our target by the end of 2018‑19 was Strategic report deliver as planned and remain within our funding. Roads PFI 384 to achieve £722 million of savings, with the final 40% We support Government's fair payment charter, Our transformational change programmes generated Operational maintenance 286 to be achieved in the final year of the road period. and our project bank accounts make a big many of the savings opportunities we needed. We Other capital investment 263 We have exceeded this target, achieving £848 million difference to the cashflow of sub‑contractors. also worked with Connect Plus on refinancing the Operation of the network 192 of efficiencies. These accounts mean all parts of the supply chain M25 PFI contract, which reduced costs by £12 million Corporate services 172 receive payment for their delivery at the same this year, and generated long‑term savings for Protocols 67 We are not funded for inflation on operational time, and sub‑contractors do not have to wait for future years. expenditure, which means we need to find £20 million main contractors to cascade payment, which can Where we spent our money in 2018‑19 of new savings and efficiencies each year to offset sometimes take weeks. During the year, we paid How we spent our money in 2018‑19 (£3.8 billion) inflationary pressures. We have examined all our £1,422 million into project bank accounts, of which (£3.8 billion) major areas of spending and found more efficient nearly a third (£419 million) went to SMEs. Because Our enhancement expenditure benefits every region ways of delivering at a lower cost. of the cashflow benefits, 80% of our sub‑contractors We spent over 71% (68% 2017‑18) of our funding and is concentrated in areas where our biggest chose to be paid this way. on renewing and enhancing the SRN, with a schemes are under construction. Our expenditure The value of our network further 23% (25% 2017‑18) spent on operations, in the Midlands included significant investment on The SRN consists of land, roads, structures (such as Government has issued a new prompt payment including service payments on PFI contracts. The the M6 (junctions 2 to 4 and 13 to 15), together with policy that requires all Government contracts of more remaining 6% (7% 2017‑18) relates to other capital £190 million of renewals. Expenditure in the East bridges and tunnels) and communication technology. These come together to form an integrated network. than £5 million to include supplier prompt payment and corporate services expenditure. reflects the £447 million spend on the A14 Cambridge to sub-contractors. We have built requirements into to Huntingdon scheme and the investment in Valuation of our network is done using standard costs and then adjusted for wear and tear. As we build new our tendering processes to ensure that this is in place Expenditure the South East is a combination of several large when it comes into force in September 2019. schemes, including M4 junctions 3 to 12 and Lower roads or enhance existing assets they are valued using the latest standard cost, which is the same as 2018‑19 2017‑18 Thames Crossing, and £135 million of renewals. We Protocols £m £m spent nearly £640 million in the North of England, the cost to build. In addition to our core activities, we manage a CAPITAL: almost 25% of our regional expenditure. SRN valuation number of other functions for the DfT. These activities, Asset renewal 674 776 Where we spent known as protocols, cost us £67 million in 2018‑19 and are funded separately by the DfT. These range Capital improvement 1,713 1,360 our money Structures £30bn from managing the historical railways estate, to Other capital investment 263 183 operating the Dartford‑Thurrock Crossing charging Total capital 2,650 2,319 2018-19 Roads scheme and managing the Severn River Crossing. (£3.8 billion) North East £74bn OPERATIONAL EXPENDITURE: 2017-18 North West £304m Roads PFI 384 421 Land Forecasting cash requirements (£3.4 billion) £291m £13bn £335m We are measured on our ability to accurately forecast Operational maintenance 286 270 £374m our cash requirements, and Government holds us to Operation of the network 192 169 Technology £2bn account for our performance. The Government target National Corporate services 172 163 is for cash variances to not exceed 5%. We have £1,109m Midlands Protocols 67 58 £1,007m Our network was valued at £118.6 billion at the end outperformed this with a variance of less than 1%. including PFI service £626m of the financial year, which is an increase of 4.4%. Total resource 1,101 1,081 payments, national £559m projects and support costs East This net increase is made up of £1.2 billion of capital All quoted capital and operational expenditure figures can be reconciled to the financial statements, via Annex 1 (iv) Segmental reporting on page 176 £591m investment and £5.1 billion of valuation adjustments, £566m then reduced by £1.3 billion for depreciation, As the number of schemes in construction increases, impairment and disposals. so does the rate of our capital spending. This year we South West South East also spent more on our maturing Designated Funds £158m £627m programme, using ring-fenced funding. £129m £474m
HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2019 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2019 22 23 Our strategic performance: KPIs Strategic report This section provides a snapshot of our performance 2. Improving user satisfaction 3. Supporting the smooth flow of traffic over the last four years, since the beginning of RIS1. Safety KPI notes Our eight strategic key performance indicators (KPIs), Read more about user satisfaction on page 77 3. Supporting the smooth flow of measured across 10 RIS1 targets set by the DfT in 1. These charts are indicative only. This year we are only able to report unvalidated Q1-2 data. These charts therefore display comparable Q1-2 data from the last three traffic 2015, provide a framework against which we can years for positioning the trends in our performance. monitor our progress. Our results for 2018‑19 show that 2. The publication of the Stats19 validated annual statistics will be released at the end of July 2019. A provisional understanding of safety performance can be derived from 2. Improving user satisfaction our performance has increased and we have met the unvalidated Q1-2 data, published in November 2018. majority of our commitments, with further work needed 3. The Road Safety Overview Performance Report was published in early February 2019. This provides a range of facts and figures, giving more contextual information in some areas. on performance. 90% We must make sure there 1. Making the network safer 98.29% 98.26% 98.41% 98.40% is 97% We monitor our road safety performance through the 88.41% 88.73% 89.11% 89.32% We must achieve a score Read more about safety on pages 68-75 figures provided in theReported Road Casualties of 97% Great Britain Annual Report, published by the DfT. 62 lane availability in any one 90% rolling year to support the 2018-19 2017-18 2016-17 2015-16 2018-19 2017-18 2016-17 2015-16 1. Making the network safer Since 2012, the number of killed and seriously injured road user satisfaction smooth flow of traffic (KSI) on the SRN has fluctuated following many years by March 2017 and then of falling numbers. This trend has also been reflected maintain or improve that in the rest of the road network in England. Headline standard
+ 15.2% figures for 2018, based on the released unvalidated dataset for the first six months of 2018, indicate an While our satisfaction score of 88.41% is slightly below We must achieve a overall reduction in the number of reported collisions +2.0% our target, we have worked across our business and 88.01% 87.90% 85.93% 85.96% We must clear at least and casualties, with KSI cases slightly increasing supply chain to improve the overall experience of our 2018 2017 2016 2015 85% 40% compared to the same period in 2017. customers and communities. Following improvements reduction in the number of to our signs, messaging and information, we have, 85% people killed and seriously of incidents on the -1.6% Further analysis has been undertaken on fatal for example, seen a continual rise in satisfaction 2018-19 2017-18 2016-17 2015-16 injured on our network by motorways within the hour casualties for 2018, based on our dataset. This around on‑road and digital information, with our the end of 2020 -10.5% indicates that the number of incidents has reduced March performance at 92.5%, our highest score by around 10% compared to 2017. since 2013‑14. 3a. Network availability Changes in recording practices over recent years We are working to improve customer experience by Q1-2 (January-June) KSI casualties by year have affected the reporting conduct of KSI. The designing roadworks that cause less disruption to Read more about network availability on page 52 change has meant that some injuries previously road users, for example increasing the speed limit 1000 classified as slight are now classified as serious. through roadworks when it is safe, and phasing Over the course of 2018-19, 98.29% of the network 800 roadworks to manage the number on any single was kept open to traffic. We have increased the stretch of road at the same time. Consequently, this volume and proportion of roadworks carried out at 600 year has seen our highest roadworks satisfaction night, when there are lower traffic volumes, helping to 400 score since 2014‑15. reduce the impact on our customers.
No. of casualties 200 Moving into 2019‑20, we will work towards our
817 941 842 859 target using evidence and insight to understand our 0 2015 2016 2017 2018 customers' needs and to act upon these.
January-June casualty data
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3b. Incident clearance 5. Delivering better environmental In April 2017, we started the noise insulation 6. Crossings outcomes programme to effectively manage environmental and Read more about incident clearance on page 52 neighbourhood noise. Through this scheme, we install Read more about crossings on page 71 improved glazing and ventilation to homes within 88.01% of incidents on the motorway were cleared 5. Delivering better environmental NIAs where our other mitigation measures are not within one hour. Our performance is 0.11% higher than outcomes practical. In 2018‑19, we extended the noise insulation 6. Crossings last year, achieved against a backdrop of increasing programme to all regions of England, and we have RIS1 4-year traffic volumes and incidents. In total, we responded 448 now improved noise insulation for a cumulative total cumulative total to over 58,680 incidents, a 4.53% increase compared of 762 properties. 72
300 Upgraded: 182
with 2017‑18. This demonstrates the positive impact 54
We must mitigate at 49 New: 90 of our initiatives, such as intelligence‑led patrolling 5b. Biodiversity Strategic report 141 least strategies and targeting of resources on our network. 7 62 We published our Biodiversity Action Plan in We do not have a target 29 28 20 13 for this measure 4. Average delay 2018-19 2017-18 2016-17 2015-16 1,150 2015‑16, and we have since published an annual 2018-19 2017-18 2016-17 2015-16 noise important areas Biodiversity Report in 2016‑17 and 2017‑18. Our next by 2020 report is due to be published this summer. 4. Average delay Government has not set a target for this measure, but Additionally, we have a road period 1 commitment we must report on the number of new and upgraded Plan Plan Plan Plan to slow the rate of biodiversity loss. We have worked published published published published crossings year‑on‑year, as part of our commitment to with Natural England to develop a new metric for and we and we and we helping cyclists, walkers and other vulnerable users of report report report biodiversity, for use in road period 2. This metric is We must publish a the network. annually annually annually currently being run in shadow form, and we will be in Biodiversity Action Plan There is no Government a position to provide evidence to support performance 9.37 seconds 9.19 seconds 8.95 seconds 8.93 seconds by 30 June 2015 Last year we reported 39 new and 172 upgraded set target for this commentary against our road period 1 commitment at measure 2018-19 2017-18 2016-17 2015-16 and report annually on crossings for 2015‑16. Due to methodology changes how we have delivered the end of this year. for validation of vulnerable users (now counting 2018-19 2017-18 2016-17 2015-16 against the plan physical crossings as single units rather than types In 2018‑19, we developed and validated a further of crossing per asset), the data for equestrian, 10 management plans for Sites of Special Scientific pedestrian and cycle crossings for the period 2015‑16 Interest across England. This brings our cumulative Government does not set a target for this measure but was reviewed this year, with figures quoted here now 5a. Noise total to 35. we must report the average time delay (time lost per validated. vehicle mile) year-on-year, as part of our commitment Read more about noise on page 92 to supporting economic growth. Our Environment Designated Fund provides the principal source of funding for our projects to improve 7. Achieving efficiency Mitigation method NIAs biodiversity across our network. We now have an mitigated extensive programme of biodiversity investment Read more about efficiency on page 23 in 2018-19 across the country, including widespread creation Noise insulation of species‑rich grasslands, in support of the 232 Government’s Insect Pollinator Strategy. In 2018‑19, 7. Achieving real efficiency we have further developed our delivery partnerships Resurfacing 58 with other stakeholder organisations, including the
Wildlife Trusts. 848 Barriers 10 486
300 We will make capital Total expenditure savings
300 169 55 of at least To improve the quality of life for our neighbours living alongside the SRN, we have mitigated 2018-19 2017-18 2016-17 2015-16 £1.212bn 300 Noise Important Areas (NIAs) during 2018‑19 by 2019‑20 through a variety of mitigation methods. Our cumulative total for the current road period is now 951, leaving 199 to complete our five‑year target of 1,150. Our approach to efficiency is set out in ourEfficiency and Inflation Monitoring Manual and our Capital Efficiency Delivery Plan. We are driving efficiencies across our business and we have established a robust
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accountability and governance framework to provide strong leadership and oversight.
Effective engagement and collaboration with our stakeholders, including our supply chain, is integral to achieving greater efficiencies.
We have identified a total of £848 million of efficiency savings against our cumulative target of £722 million for 2018‑19. A key driver has been the implementation
of Lean initiatives to increase productivity when Strategic report carrying out pavement (road) renewals.
8. Keeping our network in good condition
Read more about maintaining our network on page 51
8. Keeping the network in good condition
95%
95.5% 95.2% 94.3% 92.3% We must ensure that 95% of pavement (the road 2018-19 2017-18 2016-17 2015-16 surface) requires no further investigation for possible maintenance
In 2018‑19, we ensured that 95.5% of our network was kept in good condition, meaning that no further investigation is required for possible maintenance. This is 0.5% above target and is an improvement from last year (2017‑18), when we achieved 95.2%. In 2018‑19, we developed and used specialist data analytical tools to predict the likely KPI outcome at the end of the year, helping us shape our planning and in‑year changes. We are building on this approach to help us develop more effective and targeted renewal programmes in the future, particularly in planning for the next road period.
HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2019 28 29 Our delivery
22 Schemes opened Strategic report We are now four years into delivering Government’s Norfolk County Council's Third River Crossing scheme 1 0 2 20 A1 for traffic and £15 billion RIS1, the largest investment in our over the River Yare in Great Yarmouth. 2 1 2 2 network in a generation. Through our transformational in construction A 0 U P A schemes and programme of road improvements, To date, we have opened 29 schemes in this road 2018-19 A19 1 2 2 7 we are delivering real benefits to our customers and period and have started 44 schemes against a target A69 A1 Newcastle upon Tyne Motorways the economy, while minimising our impact on the of 36. There are currently 15 schemes in construction Carlisle A1 Sunderland environment and communities. on our network. M6 Trunk roads 1 19 9A19 A1(M) A66 Middlesbrough A19 A10 C R A595 Opened for traffic 1. Transformational schemes A174 A66 A 00 E Schemes in A19 A590 construction Investing in major schemes 9 A19 T A1 We have opened In construction there Scheme in We are committed to investing over £7 billion of our 10 A1 C A64 are currently construction capital budget into major schemes, many of which will 11 9 A A585 M6 Yo r k ahead of original continue into the next road period starting in 2020. Leeds commitment M1 Kingston upon Hull 12 20 10 M55 M65 M606 M621 We are also committed to delivering efficiency savings Preston M62 A63 29 15 A56 1 2 10 12 M61 of £1.2 billion during this road period. 1 M62 A1 A180 M58 13 Manchester M1 Grimsby schemes schemes 1 1 1 19 M18 M180 M60 Liverpool A616 A628 A1(M) IN RIS1 2018-19 M57 Sheffield 1 2 M62 2018-19 Planned Actual M53 A556 M56 A46 commitment number of number of Lincoln 1 1 1 A1 Development of the remaining major schemes is A55 schemes schemes 6 M6 A500 M117 well advanced, with less than 5% left to progress to 1 A 2 N Stoke-on-Trent A38 Nottingham 8 Derby 4 A52 Started construction 6 4 detailed design stage. 1 12 A50 A453 A483 A5 16 3A38 A42 A46 Norwich 19 20 M54 A47 A47 We have invested in our Designated Funds across A458 2 A5 M42 Opened for traffic 7 7 M6 Toll A1 A12 environment, cycling, safety and integration, air 20 2 10 M6 M69 Leicester Peterborough M6 15 Birmingham A5 A1(M) A11 quality, growth and housing, and innovation. These A14 Moved from options 21 2 11 M5 M42 Coventry 4 4 10 enable us to provide environmental, social and M1 A14 to development phase M45 A45 A14 22 A1 N E A49 5 A11 14 A428 economic benefits to the people, communities and Worcester A5 Cambridge A46 A421 Ipswich A1 M40 A14 businesses who live and work alongside our SRN. A12 During 2018-19 we opened seven schemes, adding M50 A43 Milton M11 ( ) Keynes M1 A1 M A120 A40 A120 around 60 lane miles of capacity to the SRN. We A5 A417 A40 Gloucester National Infrastructure Programme Oxford started work on four schemes; one was the A1 North M25 A34 M5 M40 A12 of Ellingham, ahead of our original commitment date In 2018, there was an increased level of activity in M48 A419 11 Swindon Southend-on-Sea M4 M4 A404 A13 of 2019-20. major national road schemes dependent on extensive M4 Reading 18 London Bristol M32 19 third-party involvement. Many of these schemes M2 A249 M4 A34 As we progress the investment in the SRN we review are transformational in nature – such as the A66 M26 A2 A36 M25 M5 A303 M3 20 M20 our major scheme programme to ensure we meet Trans-Pennine, Manchester North West Quadrant, M23 12 A3 Crawley A2070 A20 A21 the needs of our customers and local stakeholder Oxford to Cambridge Expressway, Heathrow A36 Folkestone A303 21 A23 A259 development plans. Based on this review, as at Expansion Programme and High-Speed Two (HS2) A31 Yeovil A3(M) A27 A259 31 March 2019, we had agreed with the DfT to – and they are dependent on other infrastructure Exeter M27 A27 Brighton A30 Portsmouth reschedule the start of works on the M6 junctions 21a projects across housing, regeneration, commercial A30 A35 to 26, and M56 junctions 6 to 8 to reduce congestion aviation and rail. around Manchester. The A47 and A12 junction Torquay Plymouth A38 enhancements were also rescheduled, to align with A30
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People We found out through We have completed one of the We have over 140 apprentices and largest and most expensive Strategic case study more than 200 trainees, graduates Facebook that programmes of archaeological and interns working on the project. communities were excavations ever undertaken on a frustrated that lorry road project in England. A14 Cambridge to Huntingdon We have developed four drivers weren’t reading At its peak, 250 archaeologists The £1.5 billion A14 Cambridge to Huntingdon Pre-Employment Programmes, in were excavating a range of sites improvement scheme is our biggest project collaboration with West Anglian diversions signs on over the 21 miles of the scheme. Strategic report under construction and it is more than half way Training Association, assisting over the A14 properly and More than 40 separate excavations, through to completion. The scheme covers a 45 people who were out of work. To were taking shortcuts covering some 350 hectares, have critical east-west route, particularly important for ensure we work closely with local unearthed three Neolithic henges businesses and freight, linking the North West communities, we have over 100 through their villages. (4,000 and 5,000 years old), seven and Midlands with the Suffolk ports. Science, Technology, Engineering As a result we reviewed and Mathematics ambassadors prehistoric burial grounds (most working with a range of schools our diversion signs and from the Bronze Age), 15 Iron Age (800 BC – 43 AD) and Roman The challenge Early in the project, the decision across the A14 corridor. As part of amended them to make the A14 Community Fund, we have (43 – 410 AD) settlements, three One of the country's fastest growth was made to set up an integrated diversions clearer to Anglo-Saxon (410 – 1066 AD) delivery team, with Highways allocated over £320,000 to support areas outside of London, the over 42 local initiatives. all drivers." settlements and one deserted Cambridge sub-region is expected England jointly agreeing aims medieval (1066 – 1539 AD) village. and objectives with our supply The A14 project is the exemplar to see a 23% rise in population, of making this ambition a reality, Local communities Environment along with a 28% increase in housing chain partners. Culturally this was Archaeologists have also unearthed and the freedoms the team has Project leaders decided, with and a 22% growth in jobs by 2031. important, because it fostered a The A14 passes through arable around 8,000 objects, such as been afforded have resulted in Executive support, to adopt an Our challenge for the A14 was to collaborative environment that farmland, and protected and coins, brooches and ironwork, local decision‑making which makes open approach to communicating improve connectivity, increase safety enabled everyone to work together declining fauna have been 575 human burials and cremations, a real difference, both for local with stakeholders on this project, and generate significant economic – and with equal opportunity recorded in the area, including the with over six tonnes of pottery and communities and right across particularly the communities benefits through better access to – to achieve great things. Jim great crested newt, water vole, almost five tonnes of animal bone. the industry. affected by our work. Our A14 homes and jobs. O’Sullivan, our Chief Executive, otter, and various species of bats. commented on how teamwork Facebook and Twitter pages We aim to provide an enhanced The outcome The solution and clear leadership have helped have over 15,000 followers, and habitat for many of these species. bring about huge benefits for our Journeys that has been a great forum The A14 project spans 21 miles flagship project this year, adding: We forecast that journey times will for conversations with our and will deliver over 100 lane miles communities; an example of how Journey times will decrease by of new network, including a 12.5 mile be 20 minutes quicker at peak times and will aim to eliminate over good governance can promote £1.5bn bypass to the south of Huntingdon “The A14 is a fantastic PROJECT 3,000 collisions across 60 years. stronger relationships. 20 mins and a 750 metre viaduct. As part example of where a solid AT PEAK TIMES of the scheme, we will also widen project framework has and improve existing roads and Efficiencies junctions. reaped great rewards. I Over £8.5 million Lean efficiency £8.5m 3,000 say this to project teams savings have been assured so far, LEAN EFFICIENCY COLLISIONS WILL BE In January 2019, we applied for an often but it’s so true: if with a further £11.57 million in the SAVINGS PREVENTED amendment to the Development pipeline for this RIS. Consent Order to reclassify as you are aligned with our 15,000 motorway the new A14 between company imperatives, Examples of our increased FACEBOOK & TWITTER 100 lane £320k FOLLOWERS TO SUPPORT LOCAL Girton and the new Ellington junction, working to our values productivity include Concrete and extend the A1(M)’s motorway Safety Barrier installation (increased miles INITIATIVES and if what you are WILL BE CREATED status south from Alconbury to by 5% per day) and slot drainage Project Director David Bray said: installation (increased by 14%). Brampton. If approved, this would trying to achieve forms ...have found effectively enable us to provide a part of our business We are also considering how the 250 motorway from the M25 all the way to lessons learned from this project “Social media has proved ARCHAEOLOGISTS... Peterborough. Local authorities and plan, then you have can be transferred to the future 8,000 to be a great listening OBJECTS enterprise partnerships are providing the full support of the nearby major scheme at St Neots tool for us. £100 million towards this scheme. Executive team.” (the Black Cat junction).
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The Lower Thames Crossing In February to April 2018, we held the statutory Facilitating the introduction of HS2 We have proposed that, between the M1 and the M40, This project is the single biggest roads investment consultation, followed by a supplementary The first phase of HS2 from London to Birmingham a corridor running near to the proposed east-west project since the M25 was completed more than 30 consultation from July to August. These covered the includes 18 locations where the railway crosses railway would potentially provide the greatest years ago. It will be the longest road tunnel in the proposed scheme and additional heritage mitigations the SRN. The High-Speed Rail Act (London – West benefits. According to our analysis, this corridor country, and one of the largest diameter bored tunnels for inclusion into the Development Consent Order, Midlands) 2017, granted permission for the first phase would be able to support existing transport needs, in the world. The route presents the opportunity to which was submitted in October 2018. of HS2 to be developed and delivered. as well as transformational growth, regeneration and transform journeys across the South East and beyond. redevelopment across the wider corridor. It would The scheme will upgrade an important route linking The Act sets out a number of duties for Highways significantly shorten journey times for getting between The Lower Thames Crossing will almost double the M3 in the South East and the M5 in the South England, requiring a close working relationship. the M40 and M1, providing the area with better road capacity across the Thames, east of London. West, improving journey times for millions of people. These are described further in a Memorandum of access to jobs, services, leisure and education. This
The 70mph crossing, and the new connecting road This investment will support economic growth and Understanding and supporting documents. We corridor would also provide a southern bypass to Strategic report network, will provide quicker, safer and more reliable tourism in an area where congestion and slow have established a dedicated team to lead on the Milton Keynes, reducing congestion and helping to journeys locally, regionally and nationally. journeys have previously negatively impacted the interfaces between HS2 and the SRN. We will also support the growth of the town. region’s economy. act as a delivery agent to HS2 – in a similar way to It will form a vital part of the UK's transport our current M25 tunnel enabling works and the M6 Throughout 2019 we will look within this area to find infrastructure, and the areas it will serve are home The tunnel near Stonehenge will reconnect the junction 4 design commission. the most likely route that the road could take. We to economic hubs, key UK ports and thriving northern and southern halves of the 6,500 acre World intend for the leading routes to be subject to a full communities. It will help businesses, both large and Heritage Site, which is split by the current road. It will Oxford to Cambridge Expressway public consultation in autumn 2019. small, to grow and bring people and communities also remove the congestion and its noise from the Oxford, Milton Keynes and Cambridge are growing closer to job, education and leisure opportunities. Stonehenge landscape and local communities. fast, located in a region renowned for innovation and where there are plans for a substantial increase in jobs Following the April 2017 Preferred Route Enabling the expansion of Heathrow and housing. The east-west transport connections Announcement, we have further developed Airport between these areas are not good, with issues such our proposals, informed by our comprehensive Government formally designated the as congestion, slow speeds, poor journey time stakeholder and community engagement programme. Airports National Policy Statement in June 2018, reliability and no single route to travel end-to-end. Our changes have included extending the tunnel by confirming that Heathrow Airport would be the 600 metres and simplifying junctions to help protect preferred location for a new runway. The statement We were asked to explore the case for a fast, the local road network. detailed the position of the runway to the North West, high-quality road link to better connect Oxford, Milton creating a significant interface with the M25 between Keynes and Cambridge. This included filling the 30 In October 2018 we held the most significant junctions 14 to 15. mile gap in the network between the M1 at Milton pre-application consultation ever undertaken for a Keynes and the M40 at Oxford, potentially including UK roads project. Over 10 weeks, we held 60 events Our role is primarily that of statutory consultee: new capacity at Oxford to relieve pressure on the A34. with 15,000 visitors. We had more than 230,000 visits discharging our SRN Licence obligations and to our consultation website and an unprecedented ensuring that the M25 changes are delivered to We have since been working with stakeholders 28,000 people responded to our consultation. We are standard and that the road remains aligned with and partners on the first phase of the project, using working through these responses and taking them our road users' needs. Heathrow Airport has analytical and evidence-based reviews to understand into consideration as we develop our Development recognised the benefit of our guidance and advice which of the proposed corridors should be taken Consent Order application. on a range of topics relating to their proposals and forward for further development. A high-level case the runway/highway interface. These include tunnel for the project was published in November 2016, We are now carrying out a huge programme of ground design and safety, customer experience, transport when Government committed £27 million to its investigation and enabling surveys to inform both modelling, construction phasing and logistics, future further development. In the Autumn Budget 2017, our Development Consent Order application and our proofing and environmental impact. the Chancellor stated an intention to deliver a new supply chain engagement. link in the SRN between Oxford and Cambridge. A close working relationship has been achieved In September 2018, the preferred corridor was Upgrading the A303 at Stonehenge through shared objectives, a Memorandum of announced by the Secretary of State for Transport. In September 2017, the Secretary of State for Understanding, Commercial Heads of Terms, This central corridor will stretch between Abingdon Transport announced the preferred route for technical working groups and Executive-level and Milton Keynes. The boundaries of the corridor, upgrading the A303 at Stonehenge. This scheme, engagement. A series of visits to airports outside the and the road, will pass either to the south-east or expected to cost around £1.7 billion, includes UK is underway to understand the safety, operational west of Oxford. the construction of a tunnel past Stonehenge, a and maintenance aspects of runways and taxiways free-flowing, dual carriageway and a much-needed over major highway infrastructure. bypass north of Winterbourne Stoke.
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North West 2. Our roads programme North West No. Name Here we summarise, region by region across our Schemes now completed Schemes in construction network, the RIS1 major road improvements which are 1 A556 Knutsford to Bowdon Schemes in development in construction, in development or completed, and Schemes at options stage Schemes now M60 junction 8 to M62 junction 20: 2 outline some of our key schemes in work or delivered completed smart motorway this year. 3 M6 junctions 16 to 19 Yorkshire and North East Schemes in 4 M62 junctions 10 to 12 construction
Yorkshire No. Name Strategic report M60 junctions 24 to 27 and North East 5 junctions 1 to 4 9 1 A1 Coal House to Metro Centre 6 A585 Windy Harbour – Skippool 2 A1 Leeming-Barton A5036 Princess Way – access to 7 3 M1 junctions 32 to 35a Port of Liverpool Schemes now 4 M1 junctions 39 to 42 8 M56 new junction 11a 14 Schemes in completed 6 5 A160/A180 Immingham development 9 M6 junction 19 improvements 15 7 8 6 M1 junction 45 improvement 10 M6 junctions 21a to 26 1 11 16 A19/A1058 Coast Road junction M56 junctions 6 to 8: smart 7 7 10 11 improvement 4 2 12 motorway Schemes in 8 A19 Testos 11 13 12 Mottram Moor link road 14 5 12 construction 9 A1 North of Ellingham 1 13 A57(T) to A57 link road 8 9 3 Schemes at 10 A63 Castle Street 14 M6 junction 22 upgrade options stage 2 A19 Down Hill Lane junction 11 improvement 1. Information correct as at 31 March 2019. 12 A19 Norton to Wynyard 13 M62 junctions 20 to 25 A1 Morpeth to Ellingham Manchester smart motorway (M60 junction 8 to M62 junction 20) Schemes in 14 17 dualling This is the first smart motorway scheme in the North This motorway is an integral part of the main 6 development 10 15 A1 Scotswood to North Brunton West, making journey times more reliable for the east-west corridor connecting Merseyside and 13 4 5 A1 Birtley to Coal House 180,000 drivers who use the M60 and M62 every day. Greater Manchester with Yorkshire and Humberside. 16 18 widening We started construction in 2014, with M62 junctions We estimate that our project provides an economic M621 junctions 1 to 7 18 to 20 opening in December 2017, M60 junctions benefit of up to £1.5 million per week. 17 3 improvements 8 to 10 opening in March 2018 and the final section, M60 junctions 10 to 18, opening in July 2018. 18 A61 Westwood Roundabout Through this scheme, A19/A1058 Coast Road junction 1. Information correct as at 31 March 2019. we have provided: improvement 2. There are currently no schemes at options stage in this region. 11.5 miles 5.9 miles OF CONTROLLED OF ALL LANE RUNNING Works on this £110 million investment started in MOTORWAY MOTORWAY June 2016 and completed on time in March 2019. The focus of our scheme was on reducing congestion at the A19/A1058 Coast Road junction. We built 12.4 miles 31 miles two new single-span structures to carry the existing CENTRAL OF NEW COMMUNICATIONS A19 roundabout over the lowered A19. We also RESERVATION DUCTWORK constructed a new three-span replacement structure RECONSTRUCTION INFRASTRUCTURE to support the A1058 Coast Road across the junction. New traffic signal control measures improved capacity and safety for all users, alongside enhanced facilities 800 6 for vulnerable users. NEW LIGHTING PONDS enhanced to provide COLUMNS suitable habitats for great crested newts and other flora and fauna
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M6 junctions 16 to 19 Around 120,000 drivers a day are benefitting. Results A key success for the project was the close A50 Uttoxeter (Project A) This year, we completed a £265 million smart from the first week of operation show that traffic coordination and collaboration to deliver shared We manage the A50 trunk road which is a key motorways scheme under budget and ahead of flowed at near 70mph for 22 hours each day – a benefits with a major neighbouring scheme (Roxhill). transport link between the East and West Midlands. schedule. We upgraded a 19-mile stretch of the M6 huge improvement for one of the busiest stretches of Traffic management was delivered in partnership As part of the A50 Growth Corridor investment, in Cheshire – the most significant change to the M6 motorway in the country. New variable speed limits also to enable both schemes to achieve challenging Government announced proposals to improve the A50 since it opened almost 60 years ago. We introduced help to keep the M6 congestion-free during peak times. programmes simultaneously. The success of these around Uttoxeter to ease congestion, address safety a fourth lane in each direction and over 250 electronic programmes could only be achieved through true concerns, support local businesses and help create signs, 100 traffic sensors and 70 CCTV cameras to The upgrade is the first of four smart motorway collaboration and trust. jobs and opportunities for Staffordshire. tackle congestion and improve journey times. schemes to be completed that will increase the M6’s capacity by a third on 60 miles of the motorway The combined M1 junction An important project in this investment, funded through
between Coventry and Wigan. 23a to 25 scheme has RIS1, is the construction of a double decker junction Strategic report been awarded a Gold on the A50 at its intersection with the A522 to the west National Site Award by the of Uttoxeter. Midlands Considerate Constructors Scheme in addition to being Construction started in June 2016, with the new Midlands No. Name Highly Commended in the 2017 Highways England junction opening to traffic in December 2018. Schemes now completed Supplier Recognition Awards for their outstanding Schemes in construction 1 M1 junctions 28 to 31 Schemes in development contribution within the Customer category. The project: 2 A453 widening Schemes at options stage 1 M5 junctions 5, 6 and 7 upgrades improves traffic flows on the A50(T) and local 3 A14 Kettering bypass widening We started construction of the M5 junction 6 in April network, easing congestion 4 M1 junction 19 improvement 17 2018 and it opened for traffic in March 2019. Through provides safe access for vehicles and pedestrians 5 A45/A46 Tollbar End 16 19 this project we have increased capacity by widening to and from the A50(T) to the A522 2 6 M6 junctions 10a to 13 15 11 9 all approach roads and the circulatory carriageway. enhances cyclist and pedestrian routes Schemes now 10 We have improved journey times to Worcester by 7 M5 junctions 4a to 6 opens up development land for housing and completed 6 enhancing traffic signals, implemented new signage business, facilitating the creation of jobs and 8 A43 Abthorpe junction 18 20 and road markings, and future proofed the drainage to 21 bringing economic benefits to the area 9 M1 junctions 24 to 25 14 help the floodplain capacity. delivers a junction capable of sustaining future 10 M1 junctions 23a to 24 22 23 4 3 development proposals 7 5 25 The junction 6 scheme has strong local support. 11 A50 Uttoxeter (Project A) 24 It enables future housing developments, supports 12 13 M5 junctions 5, 6, and 7 further development at the Worcester Six Technology Through this project we will support the development 12 upgrades 8 26 and Business Park and increases access to Worcester. of 19 hectares of employment land, the creation 13 M1 junctions 13 to 19 Residual work at the junction will continue until of 2,000 jobs and the construction of 700 homes. autumn 2019. Staffordshire County Council is delivering the 14 M6 junctions 2 to 4 improvements on behalf of Highways England. The Schemes in 15 M6 junctions 13 to 15 construction The junctions 5 and 7 schemes (completed in 2015) opening of this scheme is a great example of effective 16 A52 Nottingham junctions M1 junctions 23a to 24 and 24 to 25 also encourage economic development in local partnership working between Highways England communities and have improved the flow of traffic and Staffordshire County Council together with the 17 A500 Etruria widening We introduced a smart motorway between junctions through the area, for example through our new M5 supply chain. 23a and 24, and between junctions 24 and 25. We 18 M54 to M6 junction 7 signals and vehicle detectors on the four started construction in 2017 and opened for traffic in 19 A38 Derby junctions approach roads. We have improved safety, reducing December 2018. This new smart motorway reduces the number of collisions, and we have improved the 20 M6 junction 10 improvement congestion and smooths traffic flow, making journeys facilities around junction 5 for pedestrians. As the A5 Dodwells to Longshoot more reliable for around 130,000 daily users. 21 circulatory carriageway is operated and maintained widening new new Schemes in by Worcestershire County Council, we worked jobs homes The combined scheme also supports access development 22 M42 junction 6 collaboratively with them to deliver this scheme. to East Midlands Airport and the A50 growth 2,000 700 23 A46 Coventry junction upgrades corridor, including the East Midlands Gateway Rail M40/M42 interchange smart 24 Freight Interchange. It has delivered some major motorways environmental benefits, including the installation of A45/A6 Chowns Mill junction 25 nine metre high vertical noise barriers in sensitive improvement areas and new low-noise surfacing across all Schemes at four lanes. 26 A5 Towcester relief road options stage
1. Information correct as at 31 March 2019.
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Strategic case study
The M5 Oldbury Viaduct We are planning and managing the largest concrete repair project in the UK, working on an ageing viaduct which forms part of one of the country’s Strategic report busiest stretches of motorway.
The challenge moved to a contraflow "Communication with This section of the M5 is one of the busiest sections of motorway in system on the all of our different the country, carrying over 120,000 northbound carriageway. stakeholders has been vehicles between the M5, M6, The first phase of absolutely critical Birmingham and the Black Country each day. We needed to keep work was completed in throughout this project. the road open and free-flowing September 2018, when We know that there has as far as possible during our we switched over to been frustration about renewal works. work on the northbound the length of time taken The Oldbury Viaduct opened carriageway. to complete these works, in 1970, carrying around so we have looked at two miles of the M5 to the west of The first phase of work Birmingham between junctions different ways to explain 1 to 2. The waterproof layer on the took longer than we had what’s happening to viaduct was beyond the end of its anticipated because road users and the local lifespan, allowing water ingress it was only following to the concrete deck to cause communities. extensive damage. extensive testing that we discovered the extent We have worked Solution and lessons of the concrete decay. particularly hard to learned improve our signage The project has required careful Now we know what we across the Oldbury planning to minimise disruption are dealing with, we will to users, as well as to ensure the project – both to explain safety of workers on the project. be able to achieve much what is happening when, greater efficiencies and as well as to advise of “We planned the project we have learned lessons any diversions.” in two main phases. The from how we did things MARTIN PHILLIPS SUSTAINABLE BUSINESS southbound carriageway on the southbound MANAGER works were carried out carriageway.”
first, with traffic being COLIN JACKSON LEAD ENGINEER
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South West London and the South East
South West No. Name London No. Name Schemes now completed Schemes now completed & South Schemes in construction 2 25 Schemes in construction Schemes now A30 Temple to East Schemes in development 1 Schemes in development completed Carblake Schemes at options stage 12 Schemes at options stage 1 M25 junction 30 13 Schemes in M49 Avonmouth 26 4 2 2 M3 junctions 2 to 4a 6 construction junction Schemes 4 1 A21 Tonbridge to A30 Chiverton to 6 now 3 7 5 3 Pembury Carland Cross 2 15 10 14 completed M4 Heathrow slip
A303 Amesbury 4 Strategic report 16 7 road Schemes in to Berwick 4 5 development Down (includes 8 3 5 M20 junction 10a Stonehenge tunnel) 23 17 6 M4 junctions 3 to 12 1 A303 Sparkford to 18 11 5 19 22 7 M20 junctions 3 to 5 Ilchester dualling 20 9 24 Schemes in construction M23 junctions 8 to 3 M5 Bridgwater 21 8 6 10 Schemes at junctions M27 junctions 4 to options stage A358 Taunton to 9 7 11 Southfields M20 junction 10a A2 Bean and 1. Information correct as at 31 March 2019. This scheme consists of a new roundabout over the M20 motorway 10 near the existing junction 10, as well as a new dual carriageway link Ebbsfleet M49 Avonmouth junction one of the largest brownfield sites in western Europe, road to the A2070 serving the nearby hospital and retail park. 11 M3 junctions 9 to 14 bringing an estimated 14,000 jobs to the area. M25 junction 25 Through this project, we are constructing a new 12 junction on the M49, which will boost the local and improvement After starting construction in December 2017, meeting M25 junction 28 regional economy. The project has a Benefit Cost 13 our Delivery Plan target, we have made significant improvement Ratio of 32:1 as it opens up land for development on new new progress with designing and building the scheme. M2 junction 5 homes jobs 14 31,000 28,000 improvements East M25 junctions 10 to Facilitating 31,000 new homes Following fragmented 15 16 East No. Name and 28,000 new jobs, junction development over a number of M25 junction 10/A3 10a will be the biggest boost years, our Delivery Plan 2015-20 16 for the area since the arrival of confirmed works would start Wisley interchange 6 Schemes now 1 A5/M1 junction 11a link 2 8 international rail services more in 2017-18. We modified M3 junctions 10 completed 2 A47 Acle Straight 11 than 20 years ago. Situated previous proposals to allow for Schemes in 17 to 11 improved 10 7 Schemes in development sliproads 9 3 A14 Cambridge to Huntingdon close to the Channel ports and changing interdependencies construction with direct access to the SRN, with developments in Ashford, M3 junctions 12 4 A12 Chelmsford to A120 widening Ashford in Kent is uniquely and achieved planning consent. 18 to 14 improved sliproads 3 A1(M) junctions 6 to 8 smart positioned to leverage national Construction started in February 5 M27 Southampton motorway and international trading 2018. We have missed the 19 13 junctions 6 A47 North Tuddenham to Easton opportunities. Delivery Plan commitment of 2018-19 because the constraints M271/A35 Redbridge A47 Blofield to North Burlingham 20 7 The new junction will ease of the site have led to a longer roundabout upgrade dualling congestion on the M20 and at than anticipated delivery duration. 21 A31 Ringwood 1 Schemes in 5 A47 and A12 junction the existing junction 10, with The project is expected to be development 8 22 A27 Arundel Bypass 4 enhancements safety improvements predicted open for traffic later in 2019. 12 M3 junction 9 9 A47/A11 Thickthorn junction to prevent more than 14 serious 23 improvement 10 A47 Guyhirn junction or fatal injuries over the next We have had significant 60 years. Through this project contributions from the South East A27 Worthing 11 A428 Black Cat to Caxton Gibbet we are improving facilities for Local Enterprise Partnership and 24 and Lancing 12 M11 junction 7a upgrade pedestrians and cyclists, as Ashford Borough Council. Despite improvements Our flagship A14 Cambridge to Huntingdon well as creating 20 hectares the difficulties we have faced, we Schemes 25 A34 Oxford junctions scheme is the only major scheme in construction in 13 A47 Wansford to Sutton of new habitats and reducing have worked closely with these at options A34 technology the East this year. 26 1. Information correct as at 31 March 2019. road noise. partners to deliver the planned stage enhancements 2. There are currently no schemes at options stage in this region. developments. Read more about this scheme on page 32 1. Information correct as at 31 March 2019.
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3. Supporting economic growth We opened a replacement junction between In 2018 we completed the M1 smart motorway In addition to providing a critical infrastructure the A19 and A1058 near Newcastle, allowing upgrade between junctions 24 to 25, which benefitted link for local communities, the works removed Our delivery over the year free-flowing movement for traffic along both the East Midlands Airport. outstanding transport restrictions to the delivery of the The SRN plays a critical role in contributing to the A19 and A1058. This provides uninterrupted North East Daventry Sustainable Urban Extension, We work with key gateway operators and stakeholders success of the UK economy, enabling businesses to access to the northern end of the Tyne Tunnel. which is expected to enable up to 4,000 homes to across the country, facilitating UK trade and exports. come forward over the lifetime of the development. benefit from safe, reliable and efficient movement of We started widening the A500 between Wolanston Our engagement with ports and airports at a national This includes up to 150 homes in the current road people and goods, connectivity to skills, and access and Porthill in Staffordshire, complementing local level is maturing, including supporting the UK Ports period. Collectively, these improvements will help routes to national and global markets. Supporting road measures funded under the Stoke-on-Trent Conference 2018, and we are supporting Government to address the identified infrastructure deficit on economic growth is one of our objectives in our and Staffordshire Growth Deal. preparations for a third runway at Heathrow airport the A45 corridor and contribute towards the wider Strategic Business Plan, and our commitment to our
We held the statutory consultation for the Lower and the construction of HS2. We have also worked Strategic report Growth and Housing Designated Fund is included in housing allocation target outlined in the adopted Thames Crossing. with the Department for International Trade to our Delivery Plan. West Northamptonshire Joint Core Strategy. understand the developments they are working on that We made the Preferred Route Announcement for impact the SRN. The Road to Growth improvements to M3 junction 9, which will enable In the current road period, we have committed Our Strategic Economic Growth Plan, The Road to strategic access to South Coast Ports, including £93 million on 28 schemes. These will bring in a Stimulating and supporting Growth, sets out four economic roles for the SRN and Southampton, from the Midlands and support 3. further £231 million of funding from private and public Highways England: freight exports. sustainable development sectors. Seven schemes opened to traffic in 2018-19, with a further three on site. Over the lifetime of the We sought to better understand the needs of The connectivity and capacity of the transport system developments related to our funded schemes, we the freight and logistics sectors. We analysed has a significant effect on local demand for homes Enabling a high-performing SRN to expect over 45,000 homes and 44,000 jobs to be support reliant business sectors’ our landholdings to identify sites that could and employment spaces. 1. developed. We expect to close the fund in March productivity and competitiveness be developed into lorry parks, assisted local 2020 at the end of the current road period. authorities in identifying areas of lorry parking As a statutory planning consultee, we support Providing efficient routes to global need, and provided potential solutions. well-planned developments around the SRN, 2. markets through international In addition to our funding, we seek third party which bring new job opportunities and homes to gateways We developed a comprehensive spatial contributions, through our engagement in the communities across the country. Stimulating and supporting the understanding of where road-reliant businesses planning system, to mitigate impacts on the SRN, are based and their size, and undertook research where necessary. We are involved in several Housing 3. sustainable development of homes Our dedicated Growth and Housing Fund is aimed at to explore how freight could be more appropriately Infrastructure Fund proposals across the country, and employment spaces supporting road improvement schemes which help and accurately accounted for in appraisal. where significant infrastructure investment is required Providing employment, skills and unlock the development of housing and employment to enable large scale housing to be delivered. 4. business opportunities within our We developed programmes of activity with sites across the country. We work in partnership with sector Network Rail that support passenger commuting local authorities and housing developers to deliver We are working with the DfT to support changes to and freight in a more integrated way, including schemes that help generate long-term economic their planning policy on the SRN and the delivery of establishing success criteria for parkway stations benefits for local communities. sustainable development. 1. Enabling a high-performing SRN and exploring how both organisations approach, forecast and engage with freight. Growth and Housing Fund Providing employment, skills and The SRN’s role in supporting business productivity 4. and competitiveness should be seen as part of a 2. The M1 junction 16/A45 Daventry Development business opportunities Providing efficient routes link road scheme formally entered the Growth and wider and integrated transport system. As a direct employer and significant investor, we have Housing Fund programme in July 2016 and was Within an ever-changing global trading environment, major direct and indirect impacts on the economy. approved for up to £3.5 million investment in February In the current road period, we are delivering a our interventions remain mindful of the need to boost 2017. This was supplemented by over £20 million programme of major improvement schemes across UK export capability and provide reliable access to We have developed, and are implementing, a in Local Enterprise Partnership and Local Authority the country, improving safety, capacity and access, international markets. national skills and employment strategy to create contributions, and a further £15 million identified from supporting existing businesses and supply chains to the conditions in which our supply chain can best private sources. be more productive, unlocking land for development, A number of our schemes support access to respond to labour risks and opportunities. This is and reducing congestion and delays. international gateways. We have schemes to improve being implemented through our supply chain, as well The improvements were overseen by road access to Liverpool, Hull, Southampton and Tyne as through regional skills and employment strategies. Northamptonshire County Council and involved the Progress made in 2018-19: ports, as well as Birmingham, Manchester, Gatwick construction of a new 3.5 mile single carriageway link and Heathrow airports. These are currently in the road. This connected a new roundabout on the A45 We opened our smart motorway improvement in planning stages and are due to start delivery by 2020. Greater Manchester, between junctions 8 to 18 between the villages of Dodford and Weedon to a on the M60, and on the M62 between junctions second new roundabout between Upper Heyford and 18 to 20. We made improvements between the M1 motorway at junction 16. junctions 16 to 19 on the M6.
HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2019 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2019 44 45 STRATEGIC REPORT: OUR DELIVERY STRATEGIC REPORT: OUR DELIVERY