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Government's Road Investment Strategy (RIS1)

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Government's Road Investment Strategy (RIS1) Strategic report Government’s Road investment strategy reportStrategic (RIS1), which covered the first road period from 2015–20, represented the biggest investment in England’s 2020: OUR roads in a generation. With funding of £15.2 billion, we have made significant progress in operating, maintaining and JOURNEY improving our roads, which are some of the very safest in the world. SO FAR CHIEF CHIEF HOW AND EXECUTIVE’S FINANCIAL WHY WE DO INTRODUCTION OFFICER’S BUSINESS REVIEW see page 10 see page 12 see page 16 OUR RESPONDING SUPPORTING STRATEGIC TO IN-YEAR THE GREENING PERFORMANCE EVENTS GOVERNMENT COMMITMENTS see page 32 see page 54 see page 58 OUR RISK APPROACH see page 64 The strategic report was approved by the Board on 29 July 2020 and signed on its behalf by: Jim O’Sullivan, Chief Executive 8 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 9 Chief Executive’s introduction WE HAVE MADE OUR NETWORK SAFER, AND reportStrategic A MESSAGE CASUALTY NUMBERS HAVE GONE DOWN IN LINE FROM OUR CHIEF WITH OUR AMBITIOUS TARGET TO SEE THE NUMBER OF PEOPLE KILLED OR SERIOUSLY INJURED ON EXECUTIVE OUR NETWORK REDUCED BY 40%. smart motorways are as safe as, or safer than, conventional As we look to the future, we must recognise how far we have motorways”. It also said that some areas of individual risk and come as well as how much there is still to do. Our maturing public concern should be addressed. The published report approach to sustainability, for example, can be read about identified an 18-point action plan, and you can read about some on pages 98 to 100. We need to demonstrate that we can of our key next steps on page 54 of our strategic report. We are meet government’s commitment to zero carbon and within determined to do all we can to make our roads as safe as its committed timescales. We also need to exploit the full possible, and will be taking forward the measures set out by DfT. potential of the digital revolution, both in our activities, and in our communications with road users and stakeholders. There was the unexpected outbreak of Covid-19 as we Our commitment to supporting and developing a diverse, approached the end of our 2019–20 financial year. I am proud healthy and fulfilled workforce can be found on page 110. of how we responded to this challenge, and especially proud And more detail on our three imperatives is provided in this of our critical workers who enabled the safe travel of NHS year’s operational report on pages 76 to 95. S and other emergency service workers, as well as the timely to improve customer service. This includes our implementation Highways England has made great delivery of essential goods. We were able to meet all our of 60mph speed limits through roadworks, where safe to do so, Thank you progress in our first road period (2015–20). in-year objectives and first road period commitments, while which won the public policy of the year award. We can be pleased with what we have also supporting our staff and supply chain to move to new I would like to thank everyone at Highways England for their achieved in this final year of RIS1, and we On balance, we are satisfied with our results. The SRN is now ways of working. You can read more about our initial response passion and commitment to getting the country, and each considered a key economic asset, with a well-established need to the pandemic on page 56. other, home safe and well this year – and for the excellent recognise and embrace the significant for long-term investment to ensure the prosperity and wellbeing examples of professionalism I am fortunate to witness every challenges to come in the next five-year of our country. In the areas where we have not fully met our 2019–20 highlights day. I also thank our Chairman, Colin Matthews, who stepped targets, we have clear plans to action for the second road period. down at the end of April 2020. He has led the Board with road investment period and beyond. One of our key successes in this financial year was our £1.3 billion commitment and vigour, and given immense service to A14 Cambridge to Huntingdon scheme. We completed the Looking ahead Highways England. At present, we are anticipating an K 12-mile bypass between Swavesey and Ellington in December Looking back announcement by government on the appointment of our Our £27.4 billion of funding for the second road period will allow 2019, a year ahead of schedule. The rest of the scheme is new permanent Chair, at which point we can look forward Back in 2015, we were entrusted with £15.2 billion1 by us to further improve the network for road users, the communities due to open for traffic in May 2020, eight months early and to working together as we move into this exciting new phase government to invest in England’s strategic road network we impact, and the environment. Our new targets include on budget2. This bodes well for the next major schemes in of our journey3. (SRN), which covers the country’s motorways and major reducing the number of people killed or seriously injured on our our pipeline, including the £850 million M4 smart motorway. A-roads in England. We agreed eight key performance network by 50%, against the 2005–09 baseline. Our ambition It also sets us up well for our other transformational schemes, indicator (KPI) targets, and the budget included the delivery of is to save customers over 20 million hours, currently lost in such as the Lower Thames Crossing and A303 Amesbury to 112 major enhancement schemes. It also covered investment traffic congestion, and to provide £27 billion of benefit for Berwick Down, which are both due to start in the second road through five ring-fenced (designated) funds to support work road users and the economy through improving journey period. You can read more about our delivery, across the first outside of traditional road investment, such as delivering cycle time, stimulating employment and supporting housing road period and in 2019–20, in our strategic performance Jim O’Sullivan paths and improving the environment. and business developments. review on pages 32 to 36. Chief Executive We have met most of our KPI targets, exceeding some but We are planning to open 52 schemes for traffic, deliver not quite meeting others. We have made our network safer, £2 billion of efficiencies and renew 1,100 miles of safety In the second road period: and reduced casualties in line with our ambitious targets to barriers. We will deliver an ever-stronger sustainability strategy cut the number of people killed or seriously injured on our in support of government’s ambition to achieve carbon network by 40%. neutrality by 2050, and support up to 64,000 jobs in the 52 construction industry. Over the five years, we have stayed within our funding, schemes will be opened for traffic delivering £1.4 billion of efficiencies and providing over We have worked closely with ministers, our colleagues at the £2.50 of public benefit for every £1 we spent on our major Department for Transport (DfT), and the Office of Rail and Road schemes. We have refined our original programme, cancelling (ORR) to ensure that our plans are robust. We are confident £2bn or postponing schemes where the costs outweighed the that we can meet our challenging targets, keeping safety, of efficiencies will be achieved benefits, which accounted for roughly 10% of our portfolio. customer service and delivery as the imperatives that drive We have completed, or are working on, nearly 70% of the everything we do. other original schemes, and we will deliver the remaining schemes within the second road period (2020–25). In-year events 64,000 We have also focused on meeting our customers’ needs. We have faced new challenges this year. Our smart motorway jobs in the construction We have consistently exceeded our incident clearance and schemes were placed under public and media scrutiny industry will be sustained network availability targets, and found new, innovative ways during DfT’s safety evidence stocktake. The stocktake was commissioned by the last government and continued by this 2 At the date of publication, in September 2020, the scheme was open for traffic, completing early in May as planned. 1 The RIS1 £15.2 billion funding allocated to Highways England includes £11.4 billion one and ran from October 2019 to March 2020. The stocktake 3 Subsequent to the preparation of this statement, Government Jim O’Sullivan discussing our winter vehicle relating to the first five-year road period (2015-20). The remaining funding has been found that “overall, the evidence shows that in most ways, announced that Dipesh Shah will be joining the company as fleet at Moreton-in-Marsh, Gloucestershire committed to the first year of the second road period (2020–25). the new permanent Chair with effect from 1 September 2020. 10 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 11 Chief Financial Officer’s review Capital expenditure £m Resource expenditure £m Pay £m Efficiencies £m reportStrategic 158 3230 1285 600 1,285 156 600 OUR FINANCIAL 3,230 149 1,069 1,081 1,101 130 2,650 1,042 121 2,319 113 REVIEW 1,931 2,031 362 317 K R 135 34 0 0 0 0 2015–16 2016–17 2017–18 2018–19 2019–20 2015–16 2016–17 2017–18 2018–19 2019–20 2015–16 2016–17 2017–18 2018–19 2019–20 2015–16 2016–17 2017–18 2018–19 2019–20 We have increased capital We have not increased We have increased our We generated £0.6 billion of investment by 67% to £3.2 billion operational (resource) investment in people by 38% efficiencies this year.
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