Strategic report

Government’s Road investment strategy Strategic report (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 Strategic report 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.

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Capital expenditure £m Resource expenditure £m Pay £m Efficiencies £m Strategic report

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. This takes since the start of the first road expenditure in proportion over the first road period. This our efficiency savings over the period. With more major schemes to capital spending and we has been driven by the growth last five years to over £1.4 billion, in construction, we will have high have absorbed the impact of in our capital programme out-performing our £1.2 billion levels of investment throughout inflation. There have been small and the roll out of our Asset five-year target. the second road period. increases from fluctuations in Delivery model. PFI maintenance expenditure and retrospective VAT charges in 2019–20.

We spent £4.5 billion this year to operate, Overall, we invested £0.8 billion more of government funding Each year we agree annual financial plans with government Nationwide investment maintain and enhance our network. This than last year, with capital spending 67% greater than four and are expected to remain within 1% of that funding. We years ago. This high level of investment allowed us to maintain achieved this again in 2019–20 for our capital investment, as Our maintenance and renewal programmes deliver benefits is the most that has ever been invested and operate our network, whilst also carrying out the we have in every year since Highways England was created. across the country. We target our work where our asset in the SRN in a single year. It means that, enhancements we committed to in our Delivery plan. This year condition data tells us the need is greatest. Operational expenditure we have completed six schemes, with a further 33 projects Funding Outturn Variance with the help of our supply chain, we £m £m £m Our spend on network enhancements reflects where our still in construction. With so many schemes underway, largest schemes are located, although the benefits are felt have invested more than £12 million of and a suite of new schemes planned, we will maintain high Operational expenditure* 1,216 1,285 (69) government funding every single day. over a much wider area and across the country. levels of investment throughout the second road period. * Resource departmental expenditure limit, excluding depreciation. Our capital investment this year aligns with our Delivery plan Our operational expenditure was £1.3 billion. Of this, 38% National for the first road period. We also used shorter term portfolio (£0.5 billion) was spent on PFI contract payments to providers adjustments to remain within our annual funding as project £1,435 million who built roads for us in the past and now maintain them. (including PFI risks and opportunities materialised. We have capped our We spent another £0.3 billion on maintenance and repairs, service payments, £0.3bn non-capital operational expenditure, including the costs and £0.2 billion operating our network, including on 1,800 traffic national projects to run our business, relative to capital spending. officers and control room colleagues. We spent £0.1 billion and support costs) £0.3bn Where our funding comes from on projects to improve the way that we operate, ensuring that North West we have effective IT, the highest value safety and engineering North East Our funding comes from government. We have five-year standards, and to deliver effective communications Midlands East £0.7bn campaigns to our road users. funding agreements and, each year, we draw down funding South East £0.5bn Value of assets managed: for our annual investment plans. We spent a further £0.1 billion running our business. We have South West Our funding is split between capital (for investment) and benchmarked our corporate functions against other companies resource (operational) expenditure. We measure our financial and sectors to make sure they are efficient. We receive £126bn performance as a company by: our ability to manage within separate funding of £0.1 billion for managing some specific activities on behalf of the DfT. These activities, known as £0.2bn Total expenditure: our financial allocations; whether we have met our efficiency £1bn targets; and whether we have achieved the delivery and protocols, include collecting income on the Dartford River operational outcomes set out in our plans. Crossing, and managing strategic salt stores for national and local authorities. £4.5bn Our financial performance Our funding for operational costs has remained flat during For ease of display, regional spend figures have Daily expenditure: been rounded down to the nearest £100m. Capital investment the first road period, and we have delivered our programmes Funding Outturn Variance To see our regional investment across £m £m £m within this constraint. There has been no funding increase for the first road period, please see page 50 general inflation, and we found additional efficiencies to offset £12m Total capital investment1 3,215 3,230 (15) price rises. Additional funding was provided, including for Efficiencies generated: 1 Capital departmental expenditure limit. Brexit-related activity and for PFI contracts, where funding Our largest scheme in construction this year was the A14 Capital expenditure was £3.2 billion in 2019–20, compared adjustments were made to match contractual delivery Cambridge to Huntingdon in the East region. We invested to £2.7 billion the year before. Of this, we spent £2.0 billion commitments. We exceeded our operational funding by £0.3 billion, bringing us to a total scheme investment of £600m on enhancement projects. We spent another £0.7 billion on more than 1% due to a backdated accounting adjustment £1.3 billion since the project started in 2016. In the South East, for PFI liabilities. Payments made: renewing our network to ensure that our structures and road we also invested £0.2 billion to start construction of the M4 surfaces are well maintained and operating safely. In addition, smart motorway between junctions 3 to 12, one of the most we invested in new technology on the road and in control rooms. congested routes in the country. Many smaller schemes are 388,000 also bringing jobs, investment and benefits across the whole of the country.

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Our efficiencies Depreciation Strategic report What we spent our money on The company incurred £1.2 billion of depreciation and amortisation charges, which reduce the net value of our 600 assets. The level of depreciation varies with the valuation of the Capital improvements: Asset renewals: Designated funds: Other capital investment: 490 asset, which is determined by a five-yearly revaluation process known as the quinquennial review (see note 6.2.i on page 182. £2.0bn £0.7bn £0.3bn £0.2bn 362 345 Delivering our major Renewing our assets to Improving the surroundings Investing in technology, 317 Our liabilities investment programme ensure that our network of the SRN as well as congestion relief and 238 At the 31st of March, we held £1.1 billion of current, short-term meets it service potential, supporting and protecting overarching projects liabilities, mainly accrued trade payables. Invoiced trade 135 including a significant quality of life to support the delivery of 34 33 106 payables are relatively low (£0.1 billion) because of our prompt resurfacing programme our investment programme payment initiative. 2015–16 2016–17 2017–18 2018–19 2019–20

Actual Target We have non-current, long-term liabilities of £1.6 billion, of which the majority relate to recognition of the future PFI payments over the life of the contracts. The remainder are Private Finance Initiatives: Maintenance: Our financial framework was set to drive greater efficiency in our delivery. We were given a target to achieve £1.2 billion of provisions, mostly for lands, and include potential payments for compulsory purchase orders and blight. Total expenditure: capital efficiency savings over our first five-year road period. £0.5bn £0.3bn Funding was provided on a post-efficient basis, which meant For more information on our liabilities, see note 7.3 on Meeting government private Maintaining our roads to we had to make these savings to afford our commitments. page 194. financing commitments ensure that they are safe £4.5bn Every year, we have exceeded our target. The rate of and fit for purpose efficiencies has increased as more projects progressed from design through to construction. We generated £0.6 billion of capital efficiency savings this year. This has brought our total SRN valuation efficiencies over the road period to more than £1.4 billion, meaning we outperformed our target by nearly 20%.

Operation of our network: Resource projects costs: Protocols: Corporate services: Our capital efficiencies can be categorised into four efficiency themes: efficient scheduling of schemes; use of Lean £0.2bn £0.1bn £0.1bn £0.1bn techniques; introduction of new types of contracts; and Keeping our network moving, Maintaining and improving Managing essential services Keeping our business introduction of new design methods. including through staffing our IT, applying our safety on behalf of DfT, for running, including utilities, Additionally, our five-year funding settlement did not provide Roads regional control centres, our and engineering standards, example the Dartford River non-capital pay, travel and budget for inflation on operational expenditure. This has meant traffic officers and national and delivering effective Crossing (Dart Charge) subsistence, training and that, each year, we had to find another £20 million of new incident liaison communications settling network claims savings and efficiencies to offset inflationary pressures. £81bn Our financial statements Capital expenditure Operating expenditure There are some technical differences between how our Structures expenditure appears in the financial statements and how it appears in relation to our funding and wider government £31bn accounts. To make this difference easier to understand, we have included a reconciliation on page 208. Land How we manage our money Our assets At the end of the year, the assets we hold were valued at As a business, we are organised into six regions, each with £126.2 billion. £13bn their own detailed business plan for maintaining and operating a large part of our network. Our major projects are also 388,000 91% We assess the worth of the SRN through a regular valuation delivered either through regionally-based specialist teams, supplier invoices paid of payments within five days process, which is set out in note 6.2 on page 181. or by bespoke teams created for our largest complex Cashflow forecasting within This year, we revalued the pavement and land elements of infrastructure projects. the SRN. Due to changes in the specification of our network, Technology We support our supply chain by paying our suppliers on time the value of the SRN has increased by £6.5 billion, see note 1 £1bn and using government’s fair payment charter. Last year, we 5% on page 175. made over 388,000 payments, with 91% paid within five days. accuracy Most of our assets are network-related but we also hold We use project bank accounts to ensure that all tiers of our £0.6 billion of non-network assets. These include dwellings, supply chain reliably receive payment. We plan and manage plant and machinery, leases and IT. There is a further our cashflow to remain within government’s 5% accuracy £0.3 billion of current assets, mostly trade receivables. forecast, which helps the Treasury manage wider public sector finances.

Vanessa Howlison Chief Financial Officer

14 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 15 How and why we do business | Looking back over the first road period Strategic report LOOKING BACK OVER THE FIRST SAFETY K 1 R 1,2,7 Safety is our first imperative. We need to keep our ROAD PERIOD customers, people and supply chain safe, above all else. Since we published our Health and safety five-year 130 safety actions delivered from plan in 2015, we have delivered all of its 130 actions. our Health and safety five-year plan In June 2019, we launched our new Home safe and well approach, which builds on this plan and provides us with a new framework to further improve safety.

Over the past five years, Measuring our progress Over the first road period, we have been we have built new roads, working to meet our safety target of maintained and improved reducing the number of people killed existing ones and kept or seriously injured (KSI) on our network our customers and the by 40% by 2020, compared to the 2005–09 average baseline. We have country’s vital transport decreased such casualties by 39.5% arteries moving safely. from 2005, and by 11.7% from 2015. We are viewed as global At the same time, we have also seen a 42% and 20% reduction respectively, leaders in road building in the overall casualties on our network. and maintenance, and Implementing Improving driver Changes in accident recording practices our roads are some of the safety measures behaviour by some police forces in recent years, very safest in the world. Our with the move from paper-based to As part of our investment in safety The actions and behaviours of drivers electronic systems, have affected how work has been underpinned measures, we have improved signage are often key contributory factors in by our three imperatives: the KSI number has been recorded. and road markings, installed new the collisions on our roads. We have Some injuries previously classified as safety; customer service; safety barriers, improved the layout undertaken a range of activities ’slight’ are now classified as ’serious’, and delivery. of junctions and widened slip roads. with our partners to improve drivers’ for example. To account for the impact information on these factors and We have also tackled local areas of these changing systems, the Office to tackle poor driving behaviour. of risk through our targeted safety for National Statistics has produced This has included using new camera programmes. These include a robust methodology for adjusting technology to identify motorists who our Cycling, safety and integration historical road casualty data. drive under a Red X sign. Having fund, which we used to deliver previously sent warning letters, drivers For details on how we have improved improvements focused on our can now be issued with fines and safety in 2019–20, see pages 76 to 83 single carriageways and routes for penalty points for ignoring warning in our operational report walkers, cyclists and horse riders. signs and Red X lane closures. We have We also used our Safety and also worked with the police in using congestion relief programme to unmarked heavy goods vehicles improve existing roundabouts, (HGVs) to patrol our network, slip roads and junctions. recording driving offences. We have run a series of targeted national and regional awareness campaigns. Our ’Space Invader’ campaign, for example, focused on tailgating, using the ’stay safe, stay back’ call to action. We also worked with THINK!, the DfT road safety campaign, to run an initiative to encourage motorists to perform basic safety checks before beginning their journeys.

16 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 17 How and why we do business | Looking back over the first road period continued Strategic report

CUSTOMER SERVICE K 2 R 3,4,5 DELIVERY K 3–8 R 6,8

We want our customers to trust us and for all our Government’s RIS1 set out 112 schemes to be developed and people, both on and off-road, to understand their built on a scale unprecedented since the 1980s. We have made contribution to customer service. Our Customer service 2,500 hours significant progress in delivering, and refining, our investment Journey time saved each day in strategy, published in 2016, focused on ensuring we 2019–20 plan for the first road period to ensure we deliver value for consistently deliver the basics, while improving our money for the taxpayer, and the best possible outcomes services and our network for all our customers and for road users and the communities we serve. neighbouring communities.

Measuring our progress At the beginning of April 2018, Transport Delivering our investment For some of these schemes, we We work to a target of 95% of our Over the first road period, customer Focus launched the Strategic Roads programme developed options to improve value road surface being kept in good satisfaction has been measured through User Survey (SRUS). We have worked for money; for the remainder, we are condition, meaning that no further the National Road User Satisfaction with Transport Focus to develop this We delivered over £15 billion of reviewing other options, including investigation is required for possible Survey (NRUSS). Transport Focus, the new survey, which will provide the official investment across the first road rescheduling schemes. maintenance. At the end of the first independent watchdog for transport measure of customer satisfaction, road period, we achieved 95.5%. period to improve our network. We We reviewed the timetable for all major users, is responsible for managing the replacing the NRUSS from April 2020. opened 36 schemes for traffic and projects as part of our ongoing capital We also mitigated 1,174 noise survey and for providing us with the data The two surveys cannot be directly started work on a further 31 schemes. planning, considering in particular important areas against our overall each month. Satisfaction has increased compared. The new survey will use an We worked to improve safety and the impact on customers. This work target of 1,150 areas. In total, from 88.5% in March 2015 to 89.2% in improved methodology to provide more increase access and integration, identified that there were eight routes we reduced noise for around March 2020. detailed insights, which we will use to including delivering 438 new and where the combination of different 50,000 people. help shape future iterations of our annual Following improvements to our variable upgraded crossings for walkers, works planned might have created customer service plan. Since 2015, we have outperformed Understanding signs and signals, we have seen a rise in cyclists and horse riders. We delivered unnecessary disruption for road users. our efficiency targets. We delivered our customers satisfaction around on-road and digital For details on our work to improve wider improvements beyond the To make the most efficient use of our £1.4 billion of efficiency savings over information. This year, our programme customer service in 2019–20, traditional focus of road investment, access to the network, we decided the first road period, against our We have looked at how we can of improvements has saved over see pages 84 to 91 in our including investment in 28 schemes to start some schemes earlier and cumulative target of £1.21 billion. improve our relationships with 2,500 hours of customer journey time operational report to support the development of more reschedule others. While this will customers, including how we can on average per day, in addition to than 45,000 homes and 44,000 jobs. extend the period of investment, it will For details on scheme delivery better understand and respond to over 1,000 hours saved on average As part of our delivery, we identified result in a better experience for our in 2019–20, see pages 37 to 49 their needs. We publish an annual in 2018–19. This has contributed to a number of opportunities to refine customers and enable a more efficient in our strategic report. For details Customer service plan, Connecting the NRUSS satisfaction score, with our investment programme. We flow of construction work, saving on efficiency, see page 95 in our our customers, setting out how we information and signage being the highest published these in October 2017, and taxpayers’ money. Those schemes sustainability report will improve the service we provide. performance indicator once again. communicated further changes in our which we have started but not yet completed will form a significant We developed and used a While we do not have a set target for annual Delivery plan update. Through volume of the work to be delivered stakeholder mapping tool to identify average delay, our measurement tracks these changes, we improved overall early in the second road period. the key distribution hubs of our the delay experienced by individual value for money, as well as increasing freight customers. This helped us vehicles. It is based on the difference safety, reducing disruption, easing Measuring our progress better understand pinch points when between actual journey time and traffic flow and improving journey- We have a number of delivery-related planning roadworks. The tool has free-flow journey time. During 2019–20, time reliability. We also provided targets for the first road period. also helped us focus engagement average delay on our roads was greater visibility over the pipeline of We exceeded our network availability with stakeholders, particularly around 9.33 seconds per vehicle per mile, future work for our supply chain. communicating roadworks closures. KPI, achieving 98.18% against a target a minor improvement on last year, We improved the governance of Royal Mail, DPD and Eddie Stobart of 97%. To keep lanes clear, we have, at 9.37 seconds. projects to take a consistent – among other leading hauliers and for example, increased the volume and approach to assessing value for transport companies – are already We have also worked to improve our proportion of roadworks carried out money. We also carried out a review using our tool, and we are working customers’ experiences by designing at night. roadworks to cause less disruption. This of all schemes, including assessing together to evaluate its success. We exceeded our incident clearance has included increasing the speed limit costs, value for money, customer target of 85%, clearing 89.07% through roadworks, when safe to do so, benefits, stakeholder and within one hour. Achieved against and phasing roadworks to manage the environmental impact, and how each a backdrop of increasing traffic volumes, number on any single stretch of road at scheme fitted with government’s this demonstrates the positive impact of the same time. As a result, at the end of RIS1 objectives. Through these our initiatives, such as intelligence-led the first road period, we have achieved reviews, we identified a number patrolling. our highest roadworks satisfaction score of schemes which did not meet since 2014–15. our value for money targets.

18 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 19 How and why we do business | Looking back over the first road period continued Strategic report DELIVERING WIDE-RANGING IMPROVEMENTS R 8 S Through our capital programme and designated For further details on our designated funds schemes, we have invested in projects beyond funds, see pages 101 to 103 in our sustainability report our road network to deliver a range of benefits for our customers, neighbouring communities, the environment and the economy.

Mitigating noise Improving air quality Using recycled materials Reducing our CO2 footprint

1,174 101 85%+ 49.6% noise important areas mitigated SRN sections reviewed for nitrogen oxides compliance materials recycled reduction in our corporate carbon footprint

We used low-noise surfacing, noise barriers, noise We improved air quality near our roads by supporting We used recycled materials and both on-site and off-site We achieved this reduction against our Greening Government insulation and bypasses to reduce noise for around zero-emission vehicles, investigating the effectiveness recycling facilities on some road schemes. Commitment baseline, surpassing DfT’s target of 44%. 50,000 people. of tall barriers and reducing speed limits.

Delivering cycle schemes Strengthening biodiversity Reducing litter Improving the water environment

160 60 39,000 260 new cycle schemes wildlife crossings bags of litter collected flood-vulnerable locations mitigated

We delivered cycle schemes around the country as part We delivered crossings, such as tunnels and green bridges, We collected litter from our network’s worst hotspots, We improved SRN resilience, road user safety, protection of our wider delivery of 438 new and upgraded crossings on major roads to protect and enhance natural habitats. in addition to rubbish collected as part of our routine for local communities and water quality through the use for walkers, cyclists and horse riders. maintenance activities, to improve safety on the SRN, of sustainable drainage systems, such as wetland and reed promote cleaner environments for local communities bed schemes. and support wildlife habitats.

20 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 21 How and why we do business | Looking ahead to the second road period Strategic report LOOKING AHEAD The first road period vs. the second road period TO THE SECOND WHAT IS CHANGING? ROAD PERIOD FIRST SECOND

£15.2bn1 £ 2 7.4 b n capital and capital operational investment investment It is vital that we keep our Government’s RIS2 sets out its vision for • providing a new Lower Thames a safer, more reliable and greener SRN, Crossing to link Kent and Essex network well maintained which uses new technology, supports • upgrading the A46 around Newark, and flowing smoothly. As the country’s economy and is an easing congestion and supporting demand grows, with traffic integrated part of the national regional plans for a new trade corridor volumes expected to rise by transport network. stretching from Gloucestershire to Hull KPIs & targets KPIs & targets up to 32% by 2040, we must To respond to, and align with, RIS2, Our whole programme will help keep Performance measured Performance will be measured make sure that our network we have created our Strategic business the country moving and create greater against eight areas: against six outcomes: plan and Delivery plan. Our Strategic • Improving safety for all capacity to connect families and friends. • Making the network safer can cope. Businesses, business plan provides the high-level • Providing fast and reliable We will help create jobs and support • Improving user satisfaction direction for every part of our company journeys large and small, need roads sustainable growth and housing, • Supporting the smooth flow • A well-maintained and resilient for the second road period (2020–25). as well as supporting regional and of traffic to get goods and services network This is supported by our Delivery plan, national economies. • Average delay to people; sectors heavily • Delivering better environmental which provides the details of specific • Delivering better environmental outcomes reliant on our network funding, activities and projects we will Preparing for the second road outcomes • Meeting the needs of all users deliver over the five years. period has presented us with the • Crossings employ 7.4 million people, • Achieving efficient delivery opportunity to undertake the full • Achieving efficiency and contribute £314 billion We have set out a programme planning process for the first time. • Keeping the network in good to the UK economy. We which balances £27.4 billion across For more details on our end-to-end condition expect this figure to grow enhancement schemes and operating, planning, see our case study maintaining and renewing our roads. on pages 136 and 137 in our Schemes

by 35% by 2030. We will also address a wide range of governance report issues beyond the traditional focus • Open 52 enhancement of road investment, and start planning Schemes schemes for traffic in the second road period for the third road period. • £6.87 billion capital spend • Start work on 12 new schemes3 to start the delivery of • Develop over 30 pipeline Government’s RIS2 commits funding to 112 enhancement schemes schemes for the third road a number of proposed new enhancement • Planned the development of period and beyond schemes. These schemes will add 15 schemes in preparation capacity to address congestion and for the second road period improve network resilience, including by: • dualling the A66, providing the first Designated funds new Trans-Pennine dual carriageway since 1971 Designated funds Ring-fenced funding across four revised funds: • improving the A303, providing a Ring-fenced funding across • Safety and congestion high-quality route to the South West five funds: • Users and communities • Air quality and improving roads for communities, • Environment and wellbeing • Cycling, safety and integration tourists and businesses • Innovation and modernisation • Innovation • Environment • Growth and housing2

1 The RIS1 £15.2 billion funding allocated to Highways England includes £11.4 billion relating to the first five-year road period (2015–20). The remaining funding has been committed to the first year of the second road period (2020–25). 2 In the second road period, Highways England will support growth and housing by accessing the Housing Infrastructure Fund, government’s capital grant programme. 3 This number includes the 5 new scheme commitments set out in RIS2 and 7 Smart Motorway schemes confirmed following the Smart motorway safety evidence stocktake review.

22 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 23 How and why we do business | Looking ahead to the second road period continued Strategic report

BALANCED INVESTMENT

Operating, maintaining and renewing our network will remain the bedrock of our activity, and we have made £11 billion of funding available for this purpose. We will ensure that our assets, including everything from bridges to roadside signs, are well maintained, and that we protect the surrounding environment. We will increase investment in renewals activity to pre-empt problems, particularly across concrete roads, our largest structures and safety barriers. Major enhancement schemes are a crucial element of our investment portfolio. They are often the most impactful way to upgrade our roads, allowing us to improve junctions and add lanes, as well as deliver environmental, social and economic benefits. We will invest over £14 billion in enhancement schemes across the next five years, providing a benefit of £27 billion to customers, local communities and the wider economy. We plan to complete the 43 RIS1 schemes in progress, as well as commencing 12 new schemes. Every part of the country will see the positive effect of our investment.

SAFER ROADS ADDRESSING ENVIRONMENTAL EFFICIENT DELIVERY K 1 R 1,2,7 K 7 ISSUES K 5 R 8 S Safety remains our first imperative. Our ambition over We have allocated £936 million to our designated funds, As a learning organisation, there is always more we can do the second road period is to ensure our network is safer and which will help us deliver improvements in a range of areas, to improve our performance. We will build on our efficient more reliable. We aim to at least halve the number of people from conserving cultural heritage to strengthening flood ways of working from the first road period, focusing on killed or seriously injured on our roads by the end of 2025, resilience. They will also help us improve integration and efficiency across every part of our business. against the 2005–09 average baseline. This will keep us on support walkers, cyclists and horse riders. We will use the We expect to achieve £2.3 billion of efficiencies in the track to reach our goal of zero harm on our network by 2040. themes we set out in our long-term vision, Connecting the second road period through a variety of innovations and country, to guide our funding of innovation. We will work improvements. This will mean that our customers will flexibly with customers and stakeholders to invest these see even more investment for their money than has been funds where they are most needed over the next five years. possible in the past. With funding now directly linked to the We will work in partnership with stakeholders and partners, money that people pay through vehicle tax, we recognise building relationships and delivering collaboratively. This will that efficient delivery, alongside excellent customer service include working with other transport providers to improve and responsiveness, is more important than ever. integration with infrastructure across the country. £11bn for operating, maintaining and renewing our network £14bn for major enhancement schemes £27bn 50% £936m £2.3bn of benefit provided by our enhancements programme to targeted reduction in deaths and serious injuries on our roads for designated funds to support impactful projects of efficiencies targeted by the end of the second road period customers, local communities and the wider economy

24 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 25 How and why we do business | Our business model

We operate, maintain and improve England’s motorways Strategic report and major A-roads. We exist to connect the country. OUR We believe that connecting people builds communities, connecting families with places creates memories, BUSINESS connecting workers with jobs creates opportunities, MODEL and connecting businesses helps the nation thrive.

Our resources and Our stakeholders How we create value S The value we offer K relationships R Who we impact: What we do: Our 2015–20 highlights: What we rely on:

Customers Our aim is for road users to be £1 = over and feel safe on our network, to have reliable journeys and to Financial £2.50 trust the information we provide. We invest public funds in our invested benefit network to deliver our agreed Communities objectives. We are committed to delivering £314bn positive long-term social and contribution to UK economy economic outcomes by unlocking the development of housing and employment schemes, £6.3bn Human WE PLAN WE DESIGN value of road improvements improving road capacity and We have a diverse workforce, We assess economic growth and the Our design methodology follows the themes reducing congestion and delays. whose commitment enables us impact of road investment. Major national of people, places and processes. Our design to deliver road schemes and road schemes are dependent on other principles are embedded in our major 7.4m Our people customer service improvements. infrastructure projects across housing, projects’ processes. Our Strategic Design jobs supported We value our people and we are regeneration, commercial aviation and rail. Panel represents stakeholders who have a committed to providing safe, strong interest in the design of our network 1 inclusive working environments and provides scheme-specific advice. 40% that foster innovation and reduction in KSIs employee engagement. Intellectual We have expertise and Our supply chain experience in developing and 9.3 second running a major road network. maximum average delay, Our pipeline of work provides ensuring visibility to our supply chain, encouraging our partners to invest in their workforce and 98% incentivising innovation. We Social network availability and 89% support the financial health incident clearance within of our supply chain by paying Key industry partnerships and one hour quickly for work that has our supply chain support been completed. our delivery. £654m Government on social, environmental We align with government’s and safety schemes, Industrial strategy, which aims to Manufactured including 160 cycling schemes, increase productivity and drive 124 biodiversity schemes Technology helps us manage economic growth across the and 113 safety schemes country safely and cost-effectively. the changes in the way road WE BUILD WE OPERATE WE IMPROVE infrastructure is designed, We use increasingly digital, collaborative We directly manage operations, We monitor the condition of our roads, Our planet delivered and operated. and integrated commercial models to maintenance and scheme delivery, and basing our maintenance and renewals 1,174 work with our supply chain on the we are at the forefront internationally for programmes on the needs of our assets We work with the DfT, the areas benefiting from reduced Our resources and construction of our schemes. We incident management. This includes and our customers. We schedule our work Department for Environment, levels of noise relationships are mapped prioritise our programme to maximise vehicle recovery, severe weather to minimise the impact on our road users Food and Rural Affairs (Defra), to the capitals of the the benefits for stakeholders within operations and traffic management. and communities. We also innovate, the Office for Low Emission International Integrated our funding framework. using new technologies to ensure safer, Vehicles and others to help 45,000 Reporting Council’s smarter and future-ready roads, while improve air quality, lower carbon new homes supported minimising or improving our impact on emissions and reduce our impact Integrated Reporting Framework. Find out the surrounding environment. 1 Our target for the number of people killed on the natural environment. or seriously injured on our roads by the more at the iirc.org end of 2020.

26 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 27 How and why we do business | Our operating environment

We work in a changing external environment Strategic report and there are many factors that impact how OUR OPERATING we operate, maintain and improve the SRN. In this section, we summarise the main factors ENVIRONMENT from 2019–20. We have aligned our operating environment to the key stakeholder groups of our business model (see page 26) to provide a direct line of sight.

OUR CUSTOMERS AND COMMUNITIES K 2 R 3,4,5 GOVERNMENT ENVIRONMENT K 5 R 8 S

Increased demand Customers’ evolving Public perception Government’s priorities Leaving the European Environmental With a growing population, demand expectations We exist to connect the country, and and vision for the SRN Union (EU) commitments for our roads is increasing. Our network We consult and engage with customers, our business has strong public service Government is both our client and We have worked closely with DfT on the Public interest and concern on both must be resilient to increasing government and stakeholders across the roots in doing the best for society. our Shareholder. In 2019–20, we consequences associated with leaving climate change and air quality are volumes of traffic, changing patterns country to ensure we deliver a balanced This year, our smart motorways were needed to complete government’s the EU, for example working as part of increasing, along with expectations of demand and wider forecast programme of investment and benefits. placed under public and media scrutiny, £15.2 billion RIS1 for the first road government’s Operation Yellowhammer. around corporate responsibility. changes, such as an increased risk period, delivering their priorities as In response, we are working hard We have constantly reviewed our with government commissioning of extreme weather events. well as the commitments we made How we are responding to minimise our impact. programme to deliver value for money, an evidence stocktake of the safety to them. How we are responding meet our customers’ needs and work of these roads. We fully supported We have reviewed government’s Government has committed to with stakeholder development plans. DfT’s stocktake, and welcomed the This delivery was set against a Brexit notices, considered the potential achieving carbon neutrality by 2050 In the short-term, this has meant an We are in regular contact with regional opportunity to understand where backdrop of ongoing planning and impact of EU Exit on our business, and compliance with European air increase in roadworks as we extend and local bodies, such as sub-national we can improve. collaboration, as we worked closely and undertaken work in Kent to provide quality standards. We are required and improve our current network. to contribute towards the Greening transport bodies, to understand their How we are responding with the DfT to prepare for the solutions at ports. In other parts of the We know that this has caused evolving needs. second road period. Our Licence country, we have reviewed our plans Government Commitments, and will frustration for customers where we requires us to make decisions for with ports, airports, other key transport support DfT in delivering their targets. We expect our customers’ expectations We have helped transform the national are constructing major schemes. the long-term and invest so that hubs, and highway authorities, working to grow over the second road period. debate on roads to one where the SRN whole-life costs are minimised. with local resilience forums to support How we are responding We are committed to making our Funding for the SRN from 2020 to 2025 is a key economic asset, with long-term investment recognised as essential to preparations. customers’ journeys as safe, reliable will come from Vehicle Excise Duty within How we are responding We have committed to ongoing and smooth as possible. This England, creating a stronger link between ensuring the prosperity and wellbeing We have also responded to improvement in environmental includes reviewing how we design, our customers and our income, potentially of the country. The £27.4 billion of funding government’s request to support the outcomes from our activities. We are manage and schedule roadworks marking a shift in public expectation. Government published its Smart announced in RIS2 reaffirms Get ready for Brexit campaign by: acting to make the SRN a better so they cause less disruption. Road users who feel that they are directly government’s commitment to neighbour, working to improve air motorway safety evidence stocktake • displaying messages on 350 paying for a service are likely to have consistent, long-term investment quality, reduce our carbon footprint, and action plan in March 2020. This permanent variable message signs increased expectations around in the SRN, and their confidence reduce noise pollution, protect supported smart motorways as safe across the country performance, our visibility on the roads, and effective ways of providing faster in our ability to deliver. biodiversity and improve the water • deploying 19 portable variable for example more traffic officers, and the and more reliable journeys and identified environment. We are collaborating Our planning for the second road message signs to some locations quality of the information that they receive. a number of actions, which we will take with DfT, Defra, the Office for Low period, as set out in our Strategic without permanent infrastructure forward. You can read more about our Emission Vehicles and others. How we are responding business plan and our Delivery plan, response on page 54. has been influenced by government’s We know that more will need to be The requirements and priorities of our vision for the SRN to: done in the future, and have agreed customers directly inform our delivery. to a range of environmental targets • enable safer, more reliable and associated reporting as part of As part of our planning for the second journeys, directly supporting the government’s RIS2. This has informed road period and beyond, we have UK economy our planning for the second road worked to understand how requirements • be a greener network, working period and beyond. are changing. It is likely, for example, harmoniously with the environment that our customers will expect increasing Some solutions will be outside of our • be a network that enables access to roadside technology to support direct control, such as the uptake of seamless and integrated journeys innovations in the car and communications electric vehicles, yet we understand industries. We are undertaking research, • be a smarter network, responding that we will still have an enabling role. and engaging with stakeholders, to to the predicted rapid technological change See ’Greening government understand the role that we can play commitments’ on page 58 for in supporting innovation. more details.

28 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 29 How and why we do business | Our operating environment continued Strategic report EMERGING TECHNOLOGY AND INNOVATION

New and emerging trends Across the year, we have Technology is constantly changing, been working with our influencing our decision-making and supply chain to track investments as we work to deliver and respond to emerging better outcomes for our customers. Robotics and Drone Artificial Sensors trends, particularly those automation technology intelligence and tracking In 2019–20, we have seen the trend across the construction for increased innovation across our Automating Remotely undertaking Providing the software industry: construction and asset inspections and opportunity for sector increase, particularly around Monitoring assets engineering tasks to surveying work machines to deliver or digital design, off-site and modular remotely and improving improve safety and support tasks normally construction and smarter materials. predictive capabilities provide efficiencies undertaken by humans Technology also remains a driver for for asset management wider innovation, including around and deterioration improving our environmental footprint. estimation How we are responding Consideration of these trends has led us to identify that digital roads will be the future of the SRN. We are preparing a digital roads concept strategy, focused on harnessing Data science Materials Digital twins Virtual and data, technology and connectivity Using data science to sciences Providing digital augmented to improve the way the SRN is improve analytics and replication to visualise Supporting a reduction designed, built, operated and used. allow more accurate and provide greater reality in the use of energy There are three core areas: and rapid decisions understanding of assets Testing construction and materials, as well to be made and other techniques as enabling greater • Digital design and construction in virtual environments efficiency • Digital operations to improve safety • Digital for customers and efficiency Digital technology will lead to significant changes over the coming years, potentially including: • automation and repeatable digital techniques for design, construction and maintenance to make our assets easier to maintain and build • use of dynamic lanes and artificial intelligence to run a network of connected, fully autonomous vehicles • digital communications channels and reliable data to meet our customers’ evolving mobility demands and enable seamless journeys • optimised road usage to reduce congestion and ensure our network is free-flowing • making our network more connected, enabling intelligent, data-driven and automated decision-making to manage traffic flow and disruptions

30 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 31 Our strategic performance | Key performance indicators Strategic report KEY PERFORMANCE OUR RESULTS FOR 2019–20 AND THE FIRST ROAD PERIOD: INDICATORS 1 Making the network safer 2,428 2,333 Our target: 2,237 What we achieved: 2,436 2,142 2,047 Target 2,301 2,223 1,952 1,857 We must achieve a 2,035 2,152 Safety is our first imperative, and we need to keep our customers, people and suppliers safe above all else. We monitor our road 40% safety performance through the figures reduction in the number of people provided in the Reported road casualties killed or seriously injured on our Our eight KPIs provide a Great Britain annual report, published by DfT. network by 2020 2014 2015 2016 2017 2018 2019 2020 framework against which OUR PERFORMANCE OVER THE FIRST The Stats19 validated annual statistics we have monitored our ROAD PERIOD: Highways Agency/transition to Highways England for 2019 will be published at the end of Killed or serious injury casualties July 2020. A provisional understanding progress across the last (adjusted to account for introduction of CRASH) Target monitoring point of safety performance can be derived year, and across the first 1 Making the network safer from unvalidated Q1-2 data published in road period as a whole. November 2019 which indicated a slight • We need to keep our customers, people and supply chain safe above all else, decrease in the number of reported KSI’s Our results for 2019–20 and our roads are now some of the very safest in the world (-2.7% on 2018).1 show that we have met • We are on track to reduce the number of people killed or seriously injured We will assess progress towards our target the majority of our on our network by 40% by the end of 2020 for this roads period after publication of commitments, with further validated statistics for 2019 and 2020 in 2 Improving user satisfaction Safety KPI notes summer 2020 and 2021 respectively. work needed in some areas. 1 Further analysis based on our dataset and our understanding of fatal casualties for 2019 indicates that the • Our 2019–20 score (89.2%) represents the highest end-of-year road user number of fatal incidents has reduced by around 10% compared to 2018. Read more about safety These results have been satisfaction result since 2016–17, showing that we have made improvement on page 76 assured by our RIS • Overall, across the first road period, we narrowly missed our 90% target Performance Compliance 3 Supporting the smooth flow of traffic team, validated by our 2 Improving user satisfaction • Network availability: we met our 97% target every year in the first road period, Internal Audit team, and despite a significant ramp-up in delivery Our target: 88.5% 89.3% 89.1% 88.7% 88.4% 89.2% What we achieved: approved by the Board. • Incident clearance: we also met our 85% target every year, against a backdrop We must achieve a score of In 2019–20, we achieved a satisfaction score of increasing traffic volumes and incidents of 89.2% based on Transport Focus’ National road user satisfaction survey. While slightly 90% below our target, this is the highest end-of- 4 Average delay road user satisfaction by March year score since 2015–16, showing a clear • While not targeted, we report average delay (time lost per vehicle mile) 2017 and then maintain or improve upturn from 2018–19. Overall, across the year-on-year as part of our commitment to supporting economic growth that standard 2014–15 2015–16 2016–17 2017–18 2018–19 2019–20 first road period, we have narrowly missed • Overall, we have seen a 5% increase in average delay per mile over the first Highways Agency our 90% target each year. Highways England/NRUSS road period, which reflects the 3% traffic growth over the same period and (proportion of respondents fairly or very satisfied) We have worked hard across our business shows that the network is operating near capacity – and in some locations Target (90%) and supply chain to improve the experience above capacity for our customers and neighbouring communities. We have focused on the areas 5 Delivering better environmental outcomes that matter most to them, such as roadworks management, information and signage. We • Noise: we mitigated a cumulative total of 1,174 noise important areas across have, for example, saved over 3,500 hours of the first road period, exceeding our KPI of 1,150 by 24 customer journey time per day from variable • Biodiversity: we also slowed the rate of biodiversity decline across our estate speed limit improvements, equating to over over the last five years £20 million a year in economic benefits. We also achieved our highest ever scores for roadworks (75.5% – a 10% increase from 6 Crossings last year) and customer information (93.3%). • While not targeted, we are committed to improving our network’s impact Moving into the second road period, we will on cyclists, walkers and other vulnerable users of our network listen to our customers and communities. • During the first road period, we completed 438 new or upgraded crossings Transport Focus’ Strategic road user survey will provide us with insight to help tailor what we do and how we do it. Our customer 7 Achieving efficiency service plan, Connecting our customers, • We made cumulative efficiency savings for the first road period of for 2020–21 will provide a strong focus £1,448 million, exceeding our £1,212 million target by £236 million, or 19% on improving information, roadworks and customer contact – while ensuring that we are reflecting the needs of all our users 8 Keeping the network in good condition and the communities we serve. • Over the first road period, we have seen an increasing proportion of our Read more about user road surfaces in good condition, with the percentage requiring no further satisfaction on page 85 investigation stabilising above our 95% target for three consecutive years

32 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 33 Our strategic performance | Key performance indicators continued Strategic report OUR RESULTS FOR 2019–20 AND THE FIRST ROAD PERIOD: OUR RESULTS FOR 2019–20 AND THE FIRST ROAD PERIOD:

3 Supporting the smooth flow of traffic 5 Delivering better environmental outcomes S

1 Our targets: 98.46% 98.40% 98.41% 98.26% 98.29% 98.18% What we achieved: Our targets: Noise What we achieved: We must achieve We must mitigate at least Network availability: 1,174 Noise: In 2019–20, we kept 98.18% of our network In 2019–20, to improve the quality of life for 97% open to traffic, exceeding our target by 1.18%. 1,150 951 our neighbours living alongside the SRN, lane availability in any one rolling December 2019 was one of our strongest noise important areas by 2020 we mitigated 223 noise improvement areas. months, with 98.61% availability, because 651 More than 400 households benefited from year to support the smooth flow of our removal of roadworks over Christmas. & noise insulation, and over 2,000 households of traffic from noise reduction through noise barriers, 2014–15 2015–16 2016–17 2017–18 2018–19 2019–20 In the first road period, we have met our We must publish a Biodiversity 62 203 bypasses or lower noise resurfacing. & Highways Agency target every year. We have achieved this action plan by 30 June 2015 and We must clear at least Highways England/Proportion of network lane despite a significant ramp-up in delivery report annually on how we have 2015–16 2016–17 2017–18 2018–19 2019–20 Across the first road period, we have length available and the increasing roadworks activity that delivered against the plan Noise important areas mitigated (cumulative) mitigated a cumulative total of 1,174 noise 85% Target (97%) goes hand-in-hand with such investment, Target (1,150) important areas, 24 above our KPI of 1,150. accounting for the overall trend of decreased of incidents on the motorways Biodiversity: 86.20% 85.96% 85.93% 87.90% 88.01% 89.07% availability. We now put out only 16% of our Biodiversity within the hour closures in the daytime compared to 25% in We published our Biodiversity action plan 2014–15, the last year of Highways Agency. in 2015–16, and we have since reported Plan Plan Plan Plan Plan annually against this plan. We published published published published published published Incident clearance: and we and we and we and we our last Biodiversity report in 2018–19, and report report report report In 2019–20, we cleared 89.07% of incidents annually annually annually annually information on our biodiversity performance on the motorway within one hour, exceeding in 2019–20 is included in this annual report. our target by 4.07%. Our performance is 2015–16 2016–17 2017–18 2018–19 2019–20 In 2019–20, we delivered 46 biodiversity 2014–15 2015–16 2016–17 2017–18 2018–19 2019–20 higher than last year (88.01%), achieved schemes across a total of over 200 hectares Highways Agency against a backdrop of increasing traffic of species-rich grassland, 12 connected Highways England/Proportion of incidents volumes and incidents. We have a clearance cleared within an hour habitats, two sites of special scientific rate of 90.6% for breakdowns, which Target (85%) interest, one nature important area and accounted for half of all incidents. two partnership schemes. This work has We have made significant progress increased the level of biodiversity across our in performance over the first road period. estate, supporting the native flora and fauna We have met our target every year, with an and providing connected habitats in which overall trend of improvement. This final year, they can thrive. 2019–20, was our strongest ever. Over the first road period, we have reduced Read more about supporting the the rate of biodiversity loss across our estate. smooth flow of traffic on page 90 This is supported by qualitative evidence gathered as part of the approval process for our designated funds schemes, and reinforced by delivery evidence.

1 Due to agreed changes to metric calculation Read more about delivering methodology, the figures for previous years better environmental outcomes have been restated (agreed through DfT and 4 Average delay Office of Rail and Road change control). on page 101

9.37 9.33 Our target: 8.97 8.93 8.95 9.19 What we achieved: There is no target for this measure While government does not set a target 6 Crossings for this measure, we report average delay (time lost per vehicle mile) year-on-year 166 Our target: 166 What we achieved: as part of our commitment to supporting 45 economic growth. There is no target for this measure While government has not set a target for this measure, we report on the number of In 2019–20, we reported an average delay 100 121 2014–15 2015–16 2016–17 2017–18 2018–19 2019–20 new and upgraded crossings year-on-year. of 9.33 seconds per vehicle per mile. 72 83 Highways Agency 54 In 2019–20, we delivered 121 new and 45 This represents a slight reduction from the 62 Highways England/Average delay in seconds 49 upgraded crossings, helping cyclists, walkers per vehicle mile 9.37 seconds delay reported in 2018–19. 27 and other vulnerable users of our network. Overall, we have seen a 5% increase in 7 28 29 XX.X 13 20 During the first road period, we have average delay per mile across the first road 0 2015–16 2016–17 2017–18 2018–19 2019–20 completed 438 new or upgraded crossings period. This reflects the 3% traffic growth Upgraded: 227 New: 211 for vulnerable users. These have addressed over the same period. Despite demand gaps on, or improved, our network to provide growth, journey time reliability has been safe, direct, attractive and accessible stable over the first road period, with the crossing facilities. planning time index identical to year 1. Read more about average delay Read more about crossings on page 18 * Due to agreed changes to metric calculation on page 102 methodology, the figures for previous years have been restated (agreed through DfT and Office of Rail and Road change control).

34 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 35 Our strategic performance | Key performance indicators continued Strategic report OUR RESULTS FOR 2019–20 AND THE FIRST ROAD PERIOD: DELIVERING OUR 7 Achieving efficiency ENHANCEMENTS Our target: £1,447.9 What we achieved: PROGRAMME We must make capital expenditure In 2019–20, we made efficiency savings savings of at least of £600 million. This is an increase of £847.8 £600.1 £238 million compared to our savings in 2018–19 (£362 million). £1,212m £485.6 £362.2 In our Delivery plan for the first road period, by 2019–20 Overall, we have made cumulative £54.5 £169.0 £316.6 £114.5 efficiency savings for the first road period we set out an ambitious programme of 2015–16 2016–17 2017–18 2018–19 2019–20 of £1,448 million. This exceeds our five-year investment, including 112 enhancement £m Highways England efficiency savings (cumulative) target of £1,212 million by £236 million, or schemes. In the following pages, we summarise £m Highways England efficiency savings (current year) 19%. The biggest driver of efficiencies has Target (£1,212m) been our improvements to the scheduling our progress across these complex national of schemes, helping us to plan better. schemes and major road improvements. We have also used new working practices and innovation and technology to drive productivity in both our operations and construction activity. Read more about achieving efficiency on page 95

8 Keeping the network in good condition

95.5% 95.5% Our target: 94.9% 92.3% 94.3% 95.2% What we achieved:

We must ensure that In 2019–20, we ensured that 95.5% of our network was in good condition, with no further investigation required for possible 95% maintenance. This exceeded our target of pavement (road surface) by 0.5%. requires no further investigation for possible maintenance For this KPI, we measure lane one of the 2014–15 2015–16 2016–17 2017–18 2018–19 2019–20 (provisional) main carriageway. Our asset management Highways Agency system shows that, since March 2019, Highways England/Proportion of pavement in good we have undertaken approximately 893 km condition (not requiring further investigation) of maintenance work in lane one. Target (95%) In 2015–16, this metric was a lagging measure, with an initial deterioration that was not anticipated from historic trends. Yet, over the first road period, we have seen an increasing trend in our performance, followed by stabilisation above our required target for the last three consecutive years. Over the first road period, we have also implemented new processes and planning to model our future renewals needs against expected outcomes. This has included assurance processes to monitor the actual performance of our road surface against predicted models. We have used our new modelling capability to inform the investment case for the second road period. Read more about keeping our network in good condition on page 89

36 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 37 Our strategic performance | Delivering our enhancements programme continued

As our understanding of delivery We also met our commitment to Strategic report challenges has evolved, we have reviewed provide funding to support a further SCHEMES OPEN FOR and updated our enhancements two schemes, planned to be delivered TRAFFIC AND WHICH programme. We have engaged with by third parties: the M11 junction 7a; STARTED CONSTRUCTION stakeholders across the country to and A5 Towcester relief road. 6 deliver a balance of investment and DURING 2019–20 Towards the end of the first road period, A1 benefits across all regions. we agreed with DfT to remove the M56 We have advanced 21 schemes in new junction 11a from our enhancements the first road period and deferred 31 programme and defer the development 1. M6 junctions 2 to 4 A19 schemes to the second road period. of the M6 junction 22 upgrade to a 2. M20 junctions 3 to 5 A69 29 A1 We have also agreed changes with DfT future road period, which we will 3. M23 junctions 8 to 10 A1 to manage 12 major schemes with poor consider in the second road period. 4. M62 junctions 10 to 12 value for money or lack of stakeholder The start of works has also been M6 A19 5. M49 Avonmouth junction A1(M) support. As forecast, our programme rescheduled for: A27 Worthing and A66 6. A1 North of Ellingham retains 100 of the originally proposed Lancing improvements; A47 Great A595 12 7. M20 junction 10a A174 112 RIS1 schemes. Yarmouth Junctions; M2 junction 5 A66 improvement; and A303 Sparkford 8. A63 Castle Street We have made good progress over A19 to Ilchester dualling. 9. A2 Bean and Ebbsfleet A590 the road period. We have invested A1 10. M56 junctions 6 to 8 £6.87 billion of our capital budget into A64 major schemes and opened 36 for 11. M3 junctions 9 to 14 M6 traffic, compared to the 28 schemes 12. A19 Norton to Wynyard A585 planned at the start of the second road 13. M621 junctions 1 to 7 15 13 M1 1 M55 M65 M606 M621 period . Through this work, we have improvements 14 M62 A63 A56 4 added over 370 lane miles of additional 14. M62 junctions 20 to 25 M61 M62 A1 A180 capacity to our network, and generated 15. A585 Windy Harbour – Skippool M58 M1 Manchester M18 8 efficiency savings of £1.4 billion in total 4 M60 M180 16. M6 junction 19 improvements Liverpool A616 ( ) over the first road period. M57 A628 A1 M 17. M6 junction 10 improvement M62 M53 A556 M56 30 A46 During 2019–20, we opened seven 18. M42 junction 6 10 A1 enhancement schemes, including the 19. A46 Coventry junction upgrades A55 16 M6 A500 M1 M20 junction 10a which was delayed 20. M40/M42 interchange smart A38 A52 from 2018–19, adding over 70 lane miles motorway A50 of capacity. We missed our 2019–20 21. A45/A6 Chowns Mill junction A453 A483 A5 Delivery plan commitment for the M271/ improvement 17 A38 A42 A46 M54 A47 A47 A35 Redbridge roundabout upgrade, A458 22. A1(M) junctions 6 to 8 smart A5 M42 A1 which will open early in the second road motorway1 M6 M6 Toll M69 A12 18 M6 1 period. We started work on 23 RIS1 23. A34 Oxford junctions5 A5 A1(M) A11 A14 M5 M42 21 schemes and improvements to the 24. A34 technology enhancements5 M1 A14 A27 East of Lewes. M45 A45 A14 25. M3 junctions 10 to 11 improved A49 A11 19 A428 slip roads 20 A5 A46 A421 A1 M40 A14 26. M3 junctions 12 to 14 improved A12 M50 A43 M11 slip roads ( ) M1 A1 M A120 A40 A120 27. M271/A35 Redbridge A5 A417 22 roundabout upgrade A40 23 M25 A34 28. A30 Chiverton to Carland Cross M5 M40 A12 M48 A419 29. A1 Scotswood to North Brunton M4 A404 A13 5 M4 M4 24 30. A61 Westwood roundabout Bristol M32 9 2 Commitment for 2019–20 Number of schemes M2 A249 31. A27 East of Lewes M4 2 A34 Started construction 24 M26 A2 A36 M25 M5 A303 M3 M20 3 Open for traffic 7 M23 25 A3 3 A2070 7 A20 Motorways 11 A21 2 Includes the A27 East of Lewes, and excludes the two schemes to be delivered by third parties A36 A303 A259 3 Includes M20 Junction 10a 2018–19 commitment Trunk roads 26 A23 31 A31 A3(M) A27 Schemes opened for traffic A259 27 M27 A27 A30 Schemes in construction A30 A35

We have invested

28 A38 £6.87bn A30 of our capital budget into major schemes over the first road period 4 Delivery in the second road period may be subject to the outcome of the Smart motorway safety evidence stocktake review. 5 A34 schemes are now known as A34 1 Our original commitment was to open 28 schemes for traffic in the first road period. We accelerated 11 Newbury to Oxford enhancements. schemes from the second road period and deferred two schemes, bringing our revised commitment to 37. Of these, we missed one commitment (the M271/A35 Redbridge roundabout upgrade).

38 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 39 Our strategic performance | Enabling national schemes

ENABLING Strategic report NATIONAL

CASE STUDIES SCHEMES

LOWER THAMES A303 AMESBURY WORKING WITH HS2 CROSSING TO BERWICK DOWN AND HEATHROW AIRPORT This is the single biggest roads investment project since This is the first, and most significant, of a series of In 2014, we established a dedicated team to lead on the As a statutory consultee, we worked closely with Heathrow the M25 was completed more than 30 years ago. It will upgrades on the congested A303/A358 corridor. Our connections between HS2 and our network, with the aim Airport Limited on its plans for a third runway. Our focus be the longest road tunnel in the country, and one of the improvements between Amesbury and Berwick Down will of minimising impact on the SRN and considering our was on protecting the long-term capacity, safety and largest diameter bored tunnels in the world. include eight miles of new free-flowing dual carriageway customers’ needs. operability of the SRN. We worked together, in particular, and a much-needed bypass of Winterbourne Stoke. to assure the development of a safe design for the M25, The crossing will form a vital part of the UK’s transport Early Phase 1 works have started on-site and we are A two-mile tunnel under the Stonehenge landscape will assess the traffic impacts of their proposals, and agree how infrastructure, transforming the regional and national road working with HS2 to ensure safety, technical and also remove the sight and sound of traffic from much of the this area would be operated and maintained into the future. network. The route will provide new connections and operational considerations are in place before the main World Heritage Site and reconnect both halves of the area. Heathrow’s proposals included a realignment of a section quicker, safer and more reliable journeys. It will almost works begin. of the M25 into a tunnel and changes to junctions on the double road capacity across the Thames, providing In May 2019, a National Audit Office value for money review We are working with HS2 on Phase 2 of the project as it M25 and M4/M4 Spur. We responded to Heathrow’s public much‑needed relief for the Dartford Crossing. It will open of the A303 Amesbury to Berwick Down project was progresses through the planning process. On Phase 2a, consultation in September 2019 with our requirements for up markets for businesses, drive economic growth locally published. We welcomed their conclusion that the benefits we have agreed design changes to safeguard the future the SRN. and across the country, and allow people better access of the scheme, and of others along the A303 corridor, development of our network, mitigated overlap between to job opportunities on both sides of the Thames. provided good strategic reason for the upgrade. In February 2020, the Court of Appeal ruled that the the HS2 scheme and our Smart Motorway Programme, designation of the Airports National Policy Statement was Following the supplementary consultation held between This £1.7 billion scheme, planned to open in the third road and explored other areas of joint working. We are preparing unlawful. Heathrow has subsequently paused work on its January and March, we will submit the Development period, will improve connections between the South East for this phase to move into delivery following Royal Assent, Development Consent Order application, required to deliver Consent Order application for permission to build the and South West. This will reduce journey times for millions expected in late 2020. the expansion proposal, as they consider their response crossing later this year. A decision is expected in 2021. of people, and support economic growth and tourism We are also providing advice on Phase 2b of the project. to the ruling. Subject to receiving consent, we expect to start on-site in an area where congestion and slow journeys have As the future of this phase and timescales become more in 2022, with completion in the third road period. negatively impacted the region’s economy. clear, we are working with HS2 to minimise the impact of Following our submission of the Development Consent construction on our customers. We are also working with Order in October 2018, the six-month public examination HS2 to agree the design of physical interfaces with our of our scheme proposals ended in October 2019. The network. We will assess these as the route and programme Secretary of State for Transport is due to make a decision are refined. on the Development Consent Order later in the year. To allow construction to start on schedule in 2021, government gave us the go-ahead to start our search for world-class contractors to design, build and maintain this iconic scheme. We started this process in July 2019, and it will be ongoing throughout 2020.

40 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 41 Our strategic performance | Enabling national schemes continued A14 CAMBRIDGE Strategic report

CASE STUDY TO HUNTINGDON

We are now in the final year of construction to upgrade the A14 trunk road between Cambridge and Huntingdon, the A1 between Brampton and Benefits Alconbury and the A14 Cambridge northern bypass to Milton. The project, With the majority of our A14 project Traditionally, these components To improve the impact of construction which started construction in late 2016, is due to open for traffic in May 2020, now complete, we have already would be either procured off-site on the environment, we have reduced eight months ahead of schedule1. Through this project, we aim to improve delivered many of the anticipated and transported, or poured in situ. our project’s carbon footprint in the benefits. Our new process increased safety, following ways: safety, tackle congestion, connect people and unlock economic growth, accuracy and reduced the need Throughout delivery, we have used • Using renewable energy: creating a positive legacy for future generations. for road transportation or extended innovative techniques such as off-site We sourced 100% of energy used road closures. construction to minimise disruption at our construction compounds on existing roads. This was especially As part of delivering our scheme, from renewable sources. the case around building and we have aimed to leave a positive • Local sourcing: We locally installing bridge decks at Swavesey environmental legacy. We improved sourced via borrow pits most of We funded several projects, including: Progress this year Outreach and Bar Hill. Traditionally, we would the habitats for many of the more the five million tonnes of materials have built these in situ, leading to vulnerable wildlife species, including In February 2019, we completed the We have employed over 140 apprentices • autonomous dumper truck trials needed to build the new road, months of weekend road closures barn owls, kestrels, swifts, great 750-metre-long Great Ouse viaduct. and 72 graduates across our project, to increase safety and address the reducing long-distance journeys. and an extended construction period. crested newts, badgers, otters, water In March 2019, we opened the as well as welcoming around 75 young forecast shortage of on-site workers • Using non-drinking water: For On this project, we built the bridge voles, bats and butterflies. Since the upgraded A1 between Alconbury and people for work experience. • research to improve the way we construction, we tried to only use decks alongside the carriageway, start of our project, we have created Buckden. We also opened the first monitor and manage our concrete non-drinking water from water We have worked with local communities transported them using a self- over one square mile of new habitat section of the A1307, a new local road structures treatment plants, borrow pits to encourage young people to consider propelled modular wheeled platform, in 18 areas, and are planting twice as running alongside the A14. During and local watercourses (up to construction and engineering as an • a community heritage facility at and then jacked them into place. many trees and shrubs as we have the summer of 2019, we started a maximum of 20m³ per day) exciting career choice. We visited over Northstowe to engage the local By taking this approach, we greatly removed. We have also built 24 construction on the new link roads in to minimise impact on the local 40 local schools and colleges, and community and display the scheme’s reduced the number of carriageway wildlife tunnels across our scheme Huntingdon and prepared for removing drinking water supply. We also attended over 200 careers events, to archaeological findings or full A14 closures for each bridge. to give animals safe places to cross. the old viaduct over the train station. recycled water where we could, help people learn how construction • five schemes to improve connectivity In December 2019, a year ahead of We also built our own construction saving over 2,500m³. and engineering projects are delivered, and accessibility for walkers, cyclists schedule, we opened the new 12-mile yard at the side of the A1 to construct and the skills required. We worked and horse riders • Reducing fossil fuel: Where bypass. Running between Swavesey bridge components, such as deck possible, we used hybrid with a further 12 schools as part of our • flooding interventions to provide and Ellington, this offers long-distance parts and parapets. We then generators, solar-powered archaeological outreach programme. resilience for local homes and Bar Hill traffic a new high-quality A-road. transported these to where they floodlights and hydrogen-powered Primary School were needed. In parallel, we have worked to complete Partnership working vehicles. The CO2 emissions from • a study to identify how the Brampton the eastern section of our scheme the fuel we saved by using solar- through designated funds Wood site of special scientific interest between Swavesey and Milton. Here powered floodlights alone is the could be improved by our partners We used We built we have upgraded the existing A14 from We used our designated funds to equivalent of a new car being driven two to three lanes, and three to four increase scheme benefits, working in 110 times around the earth. between Bar Hill and Girton. We also partnership with our supply chain and key stakeholders. These included, 100% 24 began to build the new A1307. These renewable energy at wildlife tunnels two sections are due to open to traffic among others, Cambridgeshire County our compounds on this project in May 20201, with works continuing to Council, the Environment Agency, transform the old A14 for local journeys and the Wildlife Trust. in and around Huntingdon, due to be completed as planned by 2022.

WITH THE MAJORITY OF OUR A14 PROJECT NOW COMPLETE, WE HAVE ALREADY DELIVERED MANY OF THE A new stretch of the A14, before it opened to traffic 1 At the date of publication, the scheme was open for traffic, completing early in May 2020 as planned. PROJECT’S ANTICIPATED BENEFITS.

42 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 43 Our strategic performance | Delivering regional schemes

NORTH WEST Strategic report DELIVERING No. Name Schemes now 1 M60 junction 8 to M62 junction 20 REGIONAL completed smart motorway 2 M6 junctions 16 to 19 SCHEMES 3 A556 Knutsford to Bowdon 4 M62 junctions 10 to 12 Schemes in 5 M6 junction 19 improvements construction 6 M56 junctions 6 to 8 7 A585 Windy Harbour – Skippool Schemes in 8 Mottram Moor Link Road YORKSHIRE AND NORTH EAST development 9 M6 junctions 21a to 26 10 A57(T) to A57 Link Road No. Name 11 A5036 Princess Way – access to port Schemes now 1 A1 Coal House to Metro Centre of Liverpool completed 2 A1 Leeming to Barton There are no schemes at options stage in this region. 3 M1 junctions 32 to 35a 4 M1 junctions 39 to 42 5 A160/A180 Immingham 6 A19/A1058 Coast Road 7 M1 junction 45 improvement Schemes now completed 8 A1 North of Ellingham Schemes in construction Schemes in development Schemes in 9 A19 Testos Angel of the North at A1 junction 66, 1 construction 10 M62 junctions 20 to 25 south of Gateshead 11 A63 Castle Street 7 12 A19 Norton to Wynyard A63 Castle Street case study 13 M621 junctions 1 to 7 improvements 11 9 14 A1 Scotswood to North Brunton In March 2020, we started work to improve the A63 Castle 4 1 8 15 A61 Westwood roundabout (formerly Street in Hull, due to be completed in 2025. Through this 6 10 A61 dualling) project, we will invest around £350 million. We will lower the 3 5 Schemes in 16 A19 Down Hill Lane junction A63 to create an underpass and new split-level junction, as 2 development improvement well as removing six sets of traffic lights and several local 17 A1 Morpeth to Ellingham accesses. We will also consider improved access for non- 18 A1 Birtley to Coal House widening motorised users, and include two new pedestrian and cycle There are no schemes at options stage in this region. bridges to improve connections between the north and south of the city. The Princes Quay Bridge, for example, will link the M62 junctions 10 to 12 case study 1 Delivery in the second road period may be subject to the outcome of the Smart motorway safety evidence stocktake review. city with the Hull Marina. In March 2020, we opened for traffic our £145 million smart Engaging with our stakeholders motorway scheme on the M62 between junctions 10 to 12 (Croft to Eccles interchange). This 8.5-mile stretch is a key part 8 As part of our work, we actively engaged with several local Schemes now completed and regional stakeholders. This included consulting with the of the strategic east-west transport network, linking the M6 Schemes in construction Holy Trinity Church Hull and the Diocese of York to understand and M60. Schemes in development the best way to remove remains from the Trinity Burial Ground. Through this scheme, we added additional capacity by 17 We established a cultural heritage liaison group with converting around 17 miles of hard shoulder into running representatives from Historic England, Hull City Council lanes. We installed new technology to provide smoother traffic 14 6 and Humber Archaeology Partnership to understand how to flow, including fitting 37 CCTV cameras, 37 signs and 49 1 9 mitigate impacts on local heritage assets. We also carried out signals on newly installed structures. This has already 16 18 disability awareness workshops, when guides with varying delivered significant journey time savings, with forecasted disabilities went on a site tour with our project team to share average daily reductions of over 10 minutes. their concerns and needs. 12 Delivering wide-ranging improvements As part of our project, we procured some of the workforce We worked with neighbouring communities along this stretch 2 and subcontract work packages from companies based of motorway in a variety of ways. To mitigate two pre-existing in the local area. noise important areas and help residents next to the motorway, we installed two new noise barriers. To support Wider investment through our local employment, we hired nine people from the nearby designated funds community who were previously unemployed, and delivered over 500 training sessions across the community. We also 13 11 As part of our designated funds programme, we provided a 7 engaged local charities and schools’ youth groups throughout £2.9 million fund to create a sustainable future for Hull Minster 10 this project. 4 5 Church. Our fund will help establish the church as a place 15 of worship as well as a focal point for the community and a 3 magnet for visitors. It will create a ‘heritage corridor’ within the church, providing a home for carefully curated exhibits about the history of Hull and the church’s role. The Royal Liver Building, Liverpool

44 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 45 Our strategic performance | Delivering regional schemes continued

MIDLANDS SOUTH WEST Willow Man, to the west of the M5 Strategic report motorway near Bridgwater, Somerset No. Name No. Name Schemes now 1 M1 junctions 28 to 31 M6 junctions 2 to 4 case study Schemes now 1 A30 Temple to Carblake completed 2 A453 widening completed 2 M49 Avonmouth junction In March 2020, we completed our smart motorway project on 3 A14 Kettering bypass widening the M6 between junction 2 (M69 interchange) and junction 4 Schemes in 3 A30 Chiverton to Carland Cross 4 M1 junction 19 improvement (M42 interchange). Investing over £200 million, we have added construction 5 A45-A46 Tollbar End a fourth lane in each direction to improve journey times and Schemes in 4 A303 Sparkford to IIchester dualling 6 M6 junctions 10a to 13 enable growth around this heavily congested section of the development 5 A303 Amesbury to Berwick Down 7 M5 junctions 4a to 6 M6. This has provided around 24 lane miles of additional 6 A358 Taunton to Southfields 8 M1 junctions 24 to 25 capacity to the SRN, as well as over 112 electronic signs There are no schemes at options stage in this region. 9 M1 junctions 23a to 24 and 44 CCTV cameras. 10 M5 junctions 5, 6 and 7 upgrades 11 A43 Abthorpe junction Delivering wider benefits for stakeholders 12 A50 Uttoxeter (Project A) We have also improved the surrounding environment by 13 M6 junctions 2 to 4 mitigating noise levels in eight noise important areas, as well as improving water quality at 56 drainage outfalls. Schemes in 14 M1 junctions 13 to 19 construction 15 A500 Etruria widening Through this project, we have helped regional employment as 16 A52 Nottingham junctions well as encouraging careers in the sector through our ‘new 17 M6 junctions 13 to 15 start apprenticeship’ scheme. Our teams worked closely with 18 M6 junction 10 improvement local schools, undertook community volunteering, fundraised 2 19 M42 junction 6 for charity and helped the homeless. 20 M40/M42 interchange smart motorway 5 21 A46 Coventry junction upgrades 4 22 A45/A6 Chowns Mill junction Bullring, Birmingham 6 improvement Schemes in 23* A5 Towcester relief road development 24 M54 to M6 25 A38 Derby junctions 1 26 A5 Dodwells to Longshoot widening There are no schemes at options stage in this region. 3 * The A5 Towcester relief road is being delivered by a third party developer.

Schemes now completed Schemes in construction Schemes in development

A30 Chiverton to Carland Cross case study Over the last 12 months, we have developed this scheme to invest around £300 million to upgrade to dual carriageway the A30 between Chiverton and Carland Cross, north of Truro in Cornwall. 1 Due to open in 2023–24, this nine-mile stretch of new road 15 will link existing dual carriageways. This section of the A30 16 experiences severe congestion and delays, and our route 25 17 12 8 2 will remove a bottleneck and increase capacity to support 9 18 economic growth in Cornwall. This includes upgrading three 6 main junctions to improve safety and support the free flow of 24 26 traffic. Once open, we forecast this will reduce journey times 13 by 5-6 minutes. 19 21 4 3 7 5 22 20 14 Delivering for local communities 10 Our project scope includes changing the existing A30 to 11 23 a local road, separating east-west strategic traffic from more local north-south traffic. This will benefit residents and support quicker, more reliable journeys. It will also improve access for non-motorised road users, reducing severance to public right of way routes. We will deliver this project through our Regional Delivery Partnerships, working with local employers and stakeholders. Schemes now completed Schemes in construction Schemes in development

46 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 47 Our strategic performance | Delivering regional schemes continued

LONDON AND THE SOUTH EAST The River Cam, Cambridge EAST Strategic report

No. Name No. Name Schemes now 1 M25 junction 30 M20 junction 10a case study Schemes now 1 A5/M1 junction 11a link completed 2 M3 junctions 2 to 4a completed 2 A47 Acle Straight Through this scheme, we added a new junction where 3 A21 Tonbridge to Pembury 3 A14 Cambridge to Huntingdon1 the A2070 meets the M20. We completed this project, Schemes in 4 M4 Heathrow slip road construction 4 A1(M) junctions 6 to 8 smart motorway2 previously committed to open in 2018–19, in December 2019. 5 M20 junction 10a 3 It concludes over £100 million of investment, £36 million of Schemes in 5 M11 junction 7a upgrade 6 M20 junctions 3 to 5 which was funded by the South East Enterprise Partnership development 6 A428 Black Cat to Caxton Gibbet 7 M23 junctions 8 to 10 and Ashford Borough Council. 7 A12 Chelmsford to A120 widening Schemes in 8 *A34 Oxford junctions 8 A47 North Tuddenham to Easton construction 9 *A34 technology junction We have improved motorway access, supporting both local 9 A47 Blofield to North Burlingham dualling enhancements and regional growth plans. We have also increased capacity, 10 A47/A11 Thickthorn junction 10 M4 junctions 3 to 12 reduced congestion and improved safety on the motorway, 11 A47 Guyhirn junction 11 M27 junctions 4 to 11 as well as on local roads. 12 A47 Wansford to Sutton 12 A2 Bean and Ebbsfleet Enhancing the environment We also provided science, technology, engineering and Schemes at 13 A47 Great Yarmouth junction 13 M3 junctions 9 to 14 As part of scheme delivery, we reduced noise at three noise mathematics ambassadors for local schools. options stage 14 M3 junctions 10 to 11 improved important areas and created 20 hectares of new wildlife slip roads In March 2020, we opened our smart motorway scheme on the 1 At the date of publication, the scheme was open for traffic, completing early in May 2020 habitat. To improve access, we delivered new, and improved, as planned. 15 M3 junctions 12 to 14 improved facilities for walkers and cyclists, including a new footbridge to M23 between junctions 8 to 10, linking the M25 with Gatwick 2 Delivery in the second road period may be subject to the outcome of the Smart motorway slip roads airport as well as with the Sussex coast. We invested over safety evidence stocktake review. provide safer crossings over the M20. We are due to complete 3 Our M11 junction 7a upgrade is being delivered by a third party (Essex County Council). 16 M271/A35 Redbridge roundabout another footbridge by summer 2020. £220 million to provide more than 20 lane miles of extra upgrade capacity, converting the hard shoulder in each direction. Schemes in 17 M25 junction 25 improvement M20 junctions 3 to 5 and M23 We used technology to control traffic flow, improving journey Schemes now completed development 18 M25 junction 28 improvement times by two minutes in peak times. Schemes in construction junctions 8 to 10 case studies Schemes in development 19 M25 junctions 10 to 16 Working with our stakeholders Schemes at options stage 20 M25 junction 10/A3 Wisley interchange Having started construction in 2018, we opened our M20 smart Our co-ordination of activities with local stakeholders was 21 M3 junction 9 improvement motorway scheme in March 2020. Through this £134 million critical. To minimise disruption, we worked with Gatwick 22 M27 Southampton junctions project, we added additional capacity to the strategically- airport so that staff and airline passengers were informed well 23 A31 Ringwood important London to Dover corridor between junctions 3 to 5 8 in advance of any road closures, and to promote alternative 2 13 A27 Worthing and Lancing (Maidstone to M26 interchange). By converting the hard 24 routes. We also worked with Network Rail to avoid conflict 12 11 9 improvements shoulder in both directions, we helped reduce congestion 10 with rail engineering works. 25 M2 junction 5 improvement and deliver faster, more reliable journeys. We installed five Schemes at 26 A27 Arundel Bypass new emergency areas, and provided variable messaging Through these two smart motorway schemes, we have 3 options stage and customer information signs on 19 new gantry structures. delivered improvements on some of the busiest sections of the SRN. To increase safety, we have installed concrete safety 6 * A34 schemes are now known as A34 Newbury to Oxford enhancements. Supporting our communities barriers in both projects. Together, these schemes have helped We worked with the local Royal British Legion to provide deliver faster and reliable journeys, improved connections employment opportunities for veterans, and procured road 4 to Gatwick airport and reduced congestion. Both schemes signs from their manufacturing group, Britain’s Bravest. 1 have also made improvements to noise important areas. 5 7

The London Eye A12 Chelmsford to A120 widening case study Schemes now completed Schemes in construction In October 2019, we announced our preferred route for Schemes in development the first section of this scheme: from junction 19 (Boreham Schemes at options stage interchange) to junction 23 (Kelvedon south). We also held a public consultation from October to December 2019 to gather feedback on four further options, in addition to the two consulted on in 2017, for the remaining section from junctions 23 to 25. We have developed these additional routes to have options which could accommodate the proposed 8 Colchester Braintree Borders Garden Community housing 17 1 18 development at Marks Tey . 9 The A12 is an important transport link, connecting the key 4 1 10 regional centres of Chelmsford and Colchester, and the M25 2 12 19 to the ports of Felixstowe and Harwich. The scheme will 20 25 6 improve journey time reliability, and provide important links 7 5 21 3 between the UK and our global supply chain. We plan to 13 14 announce a preferred route for junctions 23 to 25 in 2020 16 15 and deliver the project as a single scheme. 11 22 26 24 23 We have already started working with our delivery partners and landowners to conduct essential surveys along the A12.

1 Prior to publication, in May 2020, the inspector who undertook the inquiry into the Essex County development plan found the Garden Community development to be unviable.

48 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 49 Our strategic performance | Regional Impact

REGIONAL Strategic report IMPACT

Over the past five years, we have invested across the country to drive improvements and bring benefits to our customers. Here we summarise, region by region, our progress and impact across the first road period1.

For our regional delivery in 2019–20, please see pages 44 to 49

£1.8bn North West £1.8bn Yorkshire and the East £2.1bn South West £0.8bn • Eleven major schemes: four completed; • Thirteen major schemes: two completed; • Six major schemes: two completed; one in three in construction; and four in North East £1.7bn two in construction; eight in development; construction; and three in development development • Eighteen major schemes: eight completed; and one at options stage • £500 million further investment in the A303 • Over 60 miles of smart motorways seven in construction; and three in • Over 11 lane miles added £1.7bn • Over seven lane miles added • Biggest increase in capacity in the region development • £1.3 billion upgrade to the A14 now in its • A30 Chiverton to Carland Cross scheme since 1971 • £350 million project to improve the A63 final year of construction, with the 12-mile started, supporting economic growth • Key east-west and north-south links Castle Street in Hull bypass between Swavesey and Ellington across the South West upgraded to smart motorways • Over 65 lane miles added completed a year ahead of schedule • Working on dual carriageways for Cornwall • Reduced congestion and improved journey • Increased capacity along with improved • Major upgrades to the A47 and A428 (A358) and Gloucestershire (A417) times with, for example, the M6 junctions 16 motorways, interchanges and access to the in development • Over 165 noise important areas mitigated to 19 smart motorway saving 30 minutes Port of Immingham • Over 175 noise important areas mitigated • Over 11,900 new homes supported travel time at peaks • Comprehensive review of connectivity • 34 cycle and walking schemes completed • Over 9,500 jobs generated • Over 150 noise important areas mitigated • Over 140 noise important areas mitigated • 14 cycle and walking schemes completed • Over 3,500 new homes supported • Over 8,800 new homes supported • Over 14,600 jobs generated • Over 9,200 jobs generated • 48 cycle and walking schemes completed • 24 cycle and walking schemes completed £2.9bn £2.1bn

Midlands £2.9bn £3bn London and the • Twenty six major schemes: thirteen completed; £0.8bn nine in construction; and four in development South East £3bn • Over 160 lane miles added • Twenty seven major schemes: seven • Schemes opened for traffic have eased completed; nine in construction congestion and supported local economic (10 including A27 East of Lewes); nine in growth development; and one at options stage • Major routes upgraded to smart motorways • Over 60 lane miles added • Improved links from Birmingham to London • New smart technology on M3, M20 and Manchester and M23 • Major improvement work started at key • Tackling ‘missing’ links on the south strategic junctions coast A27 • Over 260 noise important areas mitigated • Over 300 noise important areas mitigated • Over 17,300 new homes supported • Over 3,500 new homes supported • Over 9,900 jobs generated 1 Statistics for new housing and jobs result from our Growth and Housing Designated Fund activity, and not • Over 800 jobs generated from our scheduled RIS1 programme of works. They are for the lifetime of the associated developments • 25 cycle and walking schemes completed • 15 cycle and walking schemes completed and are not necessarily restricted, therefore, to schemes completed in our first road period.

50 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 51 Our strategic performance | Keeping our roads running

NATIONAL ROLL-OUT Operational Excellence Strategic report KEEPING OUR OF ASSET DELIVERY Launched in 2017, Operational Excellence is an internal programme of initiatives and best practice across our ROADS RUNNING business, including people, processes, systems, technology and data. It covers improvements ranging from how we manage our network and respond to incidents through to how we measure performance and create a legacy of change and improved capability. Our aim to provide safe Maintenance and renewals Asset Delivery Areas that went fully live in the first road period As the first stage of Operational Areas that went fully live in this financial year Excellence nears completion, we have and reliable journeys for Our maintenance and renewals In 2016, we launched Asset Delivery: our Areas that began Asset Delivery transfer this year Areas due to go live in the second road period significantly improved our delivery our customers underpins programmes are based on the needs approach to maintaining and improving Areas where no Asset Delivery is planned capacity, including: everything we do. We of our customers and our assets our assets, and generating better data (M25 Design, Build, Finance & Operate contract) spend more than £1 billion in each region. We monitor the to support it. • simplifying and driving delivery condition of our roads and structures, consistency across the country Through Asset Delivery, we are bringing every year to support our undertake regular inspections of our in-house some of the maintenance • improving the design and delivery customers and manage assets and schedule our maintenance strategy and working more closely and of our asset renewals process and renewals activities across incidents, as well as deliver efficiently with our supply chain. We are • improving how we plan for and the year to minimise the impact managing maintenance operations in a implement maintenance our maintenance and asset on our customers. renewals programmes. more coordinated way, as well as taking • developing planning tools and We work to keep our roads During 2019–20, we invested greater control of the actions we ask improving our systems for our £733 million in renewals and our supply chain to undertake. Asset employees and contractors open and fit for purpose, completed works on almost 1,000 Delivery also enables us to benchmark • coordinating and managing change schemes to renew road surfaces, cost and productivity information today, tomorrow and into through our operations transformation structures and technology on between our supply chain partners the future. management office, and our our network. and between our regions. Design Authority 13 We invested over £214 million on In 2019–20, we rolled out Asset Delivery Such progress, together with other maintenance, including repairing across five operational areas, 14 initiatives, has helped us exceed our over 33,000 defects on our network undertaking: efficiency target for the first road period. caused by wear and tear and • full implementation in Greater damage. This represents 20% It has also helped us deliver non- Manchester and Merseyside (Area 10) of our total planned investment financial benefits, such as better use of and the East (Areas 6 and 8) 12 for capital maintenance within the our network capacity and an improved first road period. • partial implementation in the Home safety culture. We have embedded a Counties (Area 3) and West Midlands 10 proactive approach to safety, identifying (Area 9) potential hazards or unsafe conditions In achieving this, we have grown and fixing them to prevent accidents 7 our organisation by 346 people. from happening. As a result, we had We opened three new offices near reduced the accident frequency rate Warrington, Ipswich and Cambridge, 6 across our people from 0.07 to 0.01 9 refurbished one office in Bedford at the end of March 2020. and built a new office within a depot We have also improved how we use our near Bedford. data to generate operational insights. This, in turn, has allowed us to align During 2019–20 we invested Over the first road period, we have rolled out Asset Delivery in eight 8 our traffic officers’ work more closely to of our 12 areas, and undertaken a the needs of our customers. We have progressive transfer of responsibility increased the amount of time that our £733m 5 traffic officers spend on our network, in renewals in two further regions. 2 whether patrolling, waiting at designated Looking to the second road period, 3 4 We completed works on almost park up points or attending incidents, we will roll out Asset Delivery to the by an average of over 20 minutes per remaining two areas: Kent and Sussex shift (2018 baseline to July 2019). (Area 4); and Yorkshire and Humberside 1,000 1 (Area 12). schemes to renew road surfaces

We repaired over 33,000 defects on our network caused by wear and tear and damage

52 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 53 Responding to in-year events Strategic report SMART WHAT’S GOING TO CHANGE? We have agreed with government an 18-point action plan to make smart motorways safer and increase customer confidence in using them. Recognising concerns, we will MOTORWAYS: strengthen our existing communications and public awareness messages, aimed at improving our customers’ understanding about how to use smart motorways and what GOVERNMENT’S to do in an emergency. 1 Ending the use of dynamic hard shoulders by converting dynamic hard shoulder sections to all-lane running to end driver confusion over different types EVIDENCE of smart motorway.

2 Faster roll-out of stopped vehicle detection to all sections of smart motorway STOCKTAKE currently without it so stopped vehicles are, in most cases, detected in 20 seconds. Future designed schemes will have this technology as standard.

3 Faster attendance by more Highways England traffic officer patrols on In October 2019, the Secretary smart motorways where the existing spacing between places to stop in an emergency, such as motorway services and emergency areas, is more than one of State for Transport asked DfT mile, reducing the attendance time from an average of 17 minutes to 10 minutes. to carry out a stocktake of the 4 Committing to a new standard for spacing of places to stop in an safety of smart motorways. emergency, with a maximum of one mile apart. We will look to, where feasible, Published in March 2020, the provide them every 0.75 miles apart so that, on future schemes, motorists should typically reach one every 45 seconds at 60mph. Smart motorway safety evidence 5 Delivering ten additional emergency areas on the M25 on the sections of stocktake and action plan smart motorway with a higher rate of live lane stops, and where places to stop established that, in most ways, in an emergency are furthest apart. smart motorways are at least 6 Considering a national programme to install more emergency areas on as safe as, or safer than, the existing smart motorways, where places to stop in an emergency are more than one mile apart. conventional motorways they 7 Investigating M6 Bromford viaduct and sections of the M1 to understand replaced. However, there what more could be done on these sections where multiple collisions are individual risks within their have occurred. operation that could be further 8 Making emergency areas more visible – all emergency areas will have a bright reduced to improve safety and orange road surface, better signs on approach showing where they are, and signs within them giving information on what to do. These will be installed by the public confidence. We are end of spring 2020. determined to do all we can 9 Installing more traffic signs giving the distance to the next place to stop to make our roads as safe as in an emergency so you should almost always be able to see a sign (typically possible, and we will take forward these will be between 300 and 400 metres apart), helping drivers reach a safer place to stop. the measures set out by DfT. M62 smart motorway 10 More communication with drivers by improving public information, spending £5 million extra to further increase public awareness and understanding of smart motorways and how to use them confidently. We will ensure drivers receive Smart motorways are the best way stocktake evidence concluded is that Defining key terms advice to help them keep safe on smart motorways, including advice on what WHY SMART MOTORWAYS? to do in a breakdown. to provide increased capacity in a in most ways smart motorways are Smart motorways Smart motorways can provide a third cost-effective way, while minimising the as safe as, or safer than, conventional These are motorways that use technology to 11 Displaying ‘report of obstruction’ messages automatically on electronic signs more capacity than a traditional amount of additional land required. This motorways. As predicted, the risk of manage the flow of traffic, controlled from our to warn oncoming drivers of a stopped vehicle ahead. motorway that occupies the same has a variety of environmental benefits, breaking down in a live lane is increased, regional control centres. We monitor traffic and set variable speed limits and signs to help keep space. On the M25, for example, 12 Displaying places to stop in an emergency on your satnav by working with and capacity can be added more quickly, but many other risks are reduced. the traffic flowing safely and freely. By opening our all-lane running motorway sections satnav providers to ensure that places to stop in an emergency, such as causing less disruption for customers. the hard shoulder to traffic, either temporarily emergency areas, are shown on the screen of the device when needed. give access to 11,000 more vehicles Compared to conventional motorways, or permanently, we increase the capacity of Our delivery costs indicate that all-lane smart motorways have a range of every day. the road without the expense and disruption 13 Making it easier to call for help if broken down by working with car running is 60% more cost efficient than additional protection measures in place. of widening the road. manufacturers to build greater awareness and understanding of ‘eCall’ The number of miles driven on our delivering increased capacity through These include full CCTV coverage, The term smart motorway describes a set of functionality, which is standard in all new cars from April 2018. motorways and major A-roads has traditional widening, and 40% more sensors to detect the flow and speed of three different motorway designs: increased by 23% since 2000, and 14 Completing the upgrade of digital enforcement cameras across the smart cost efficient than just using the hard traffic, and emergency areas to stop in. All-lane running motorway network, enabling Red X signs to be enforced. the number and diversity of vehicles shoulder at peak times. They also include electronic signs which A smart motorway which includes the permanent on our roads is expected to further display variable speed limits, Red X to conversion of a hard shoulder to a running lane 15 Updating the Highway Code to provide more guidance for motorists on smart motorway driving. increase. Our investment in smart ARE THEY SAFER? K 1 R 1,2,5,7 close lanes, and messages to warn and features regular emergency areas. motorways will ensure that our drivers of hazards ahead. These features Dynamic hard shoulders England’s motorways are among the 16 Closer working with the recovery industry, improving collaboration, training roads can meet future needs, all help reduce the risk to our customers. A smart motorway that temporarily increases and procedures. very safest in the world. Our motorways capacity at peak times by using the hard shoulder accommodating increased vehicle 17 numbers as well as cleaner, smarter are three times safer than all our A-roads and features emergency areas. Reviewing existing emergency areas where the width is less than the current standard; and if feasible and appropriate we will widen to the current standard. and more autonomous vehicle types. and six times safer than our single Controlled motorway carriageway A-roads. Overall, what the A smart motorway which retains a hard shoulder 18 Supporting the DfT in their immediate review of the use of red flashing lights and uses variable speed limits on a conventional for recovery vehicles. motorway to control the speed of traffic.

54 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 55 Responding to in-year events

LIFE-SAVING MEDICINE, CARE WORKERS, Strategic report COVID-19 EQUIPMENT AND SUPPLIES HAVE BEEN ABLE TO GET TO WHERE THEY WERE NEEDED MOST, ALONG WITH FOOD AND FREIGHT.

This year, a new strain and promoted government and Public We used our digital channels to support of Coronavirus (Covid-19) Health England advice through our government’s ‘Stay at home’ advice. internal communications platforms to We prepared a vehicle checks social emerged, declared inform, reassure and keep our people media campaign, in readiness for the by the World Health safe. We also offered an increased phased easing of the lockdown. support service from our Occupational Organization as a ‘Public Still delivering, but Health Emergency of Health Team and Mental Health Advisers to help individuals cope with the differently International Concern’. challenges of self-isolating and working from home. We were able to organise our After the first UK cases were confirmed operations so that all business-critical Most of our people were able to work on 31 January 2020, with new cases sites remained open during the remotely, allowing us to close our emerging throughout February, pandemic. Work to meet our corporate offices and support government government initially introduced year-end commitments proceeded guidelines on social distancing. preventative hygiene instructions and as planned. social distancing measures. However, Our front-line services on the SRN and Our control rooms remained open this escalated to a full-scale ‘lockdown’ in our control centres continued as and resourced, maintenance in March, which came into effect on usual. Our operationally-critical buildings activities continued, and our capital Monday 23 March. All non-essential remained open to keep our roads safe. maintenance schemes were activities and travel were suspended, We increased cleaning in these centres delivered as expected. and everyone instructed to work from and provided the necessary personal We used our variable message DfT asked us to prioritise keeping home if possible. signs across our network to protective equipment for our critical workers. We moved our operational critical freight and key workers Throughout the Covid-19 pandemic, support government and Public Health England messaging people to single-crewed traffic officer moving. We carefully controlled road our critical workers played, and are still vehicles, where possible, and our closures, particularly any roadworks playing, an important role in keeping supply chain partners introduced which might cause delays near our network operational to support the business continuity plans allowed us to stricter safeguarding measures at hospitals, to minimise impact on NHS and other emergency services. Looking to leadership respond flexibly to the emerging risks. our construction sites. such travel. Life-saving medicine, care workers, Our National Resilience and Security equipment and supplies have been able We have two relevant risks in our civil team monitored the situation closely to We were aware of the potential financial Preparing for the future to get to where they were needed most, emergencies risk register: ensure that we aligned with government impact on some of our supply chain, Alongside managing the operational along with food and freight. • H23 Pandemic Influenza advice and guidance. particularly our Tier 2 and Tier 3 suppliers. We expanded our use of challenges presented by Covid-19, We mobilised our crisis management (Very high risk) We implemented a coordinated project bank accounts (which ringfence we started delivery of government’s and business continuity plans quickly. • H24 Emerging Infectious Disease approach across our business and money to ensure it gets paid to lower RIS2, announced by the Chancellor In spite of the national challenges, we (Medium risk) supply chain, integrating our response level contractors) and worked to improve in March 2020. were able to meet our in-year objectives and activities with DfT and central Although Covid-19 falls under H24, the speed of invoice payments. Schemes already under construction and final commitments from the first government, as well as with local there are similarities in the disease have progressed, and planning and road period. Our one missed target resilience forums and other stakeholders. Our ‘Here’s to the workers’ social media characteristics with pandemic flu. for 2019–20, the M271/A35 Redbridge campaign highlighted the vital work our development work has continued Government advice was to use the roundabout upgrade, was not a result Led by our Executive team, ‘Gold’ people and our supply chain delivered for those schemes due to start in planning assumptions for H23 to of Covid-19. You can read more about and ‘Silver’ groups were established to throughout the Covid-19 lockdown. the weeks and months ahead. prepare, and to expect significant levels meet several times weekly to adjust our that on page 38. The significant investment set out of staff absenteeism due to sickness, daily service delivery plans and future K 2 Caring for customers in government’s RIS2 will be crucial. R should the worst-case scenario occur. strategies. Regional Silver groups Managing the risk We, and our supply chain, are ready managed any local response, protecting Our approach ensured there was no We had learnt from a similar situation to respond to support our country’s The Covid-19 crisis created an our most critical functions and keeping operational impact for customers using during the swine flu pandemic of 2009. economy at this vital time. unprecedented national and global set the SRN open and operating safely. our network. The national lockdown saw of operational, financial and strategic Knowing that our people may need a 50% reduction in traffic volumes on challenges. to take leave to care for sick family Protecting our people our network. It also saw a 75% reduction members, or look after children if in incidents and a 50% reduction in calls Our strong crisis management schools closed, we introduced laptops The safety, health and wellbeing of our made to our customer service team. procedures served us well in for all office-based employees to enable customers, staff and supply chain has This helped us balance the pressures establishing the required command, effective remote working in such always been our first priority. We worked faced through increased staff absences. coordination and communication circumstances. We were subsequently closely and effectively with our trade arrangements to keep our company in a more agile position this time around. union colleagues throughout the crisis, functioning effectively. Our robust

56 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 57 Supporting the Greening Government Commitments

Supporting zero Strategic report SUPPORTING THE emission vehicles Throughout the first road period, we have worked towards achieving our GREENING GOVERNMENT commitment of ensuring that 95% of our network is within 20 miles of a rapid COMMITMENTS charge point for electric vehicles. This year we delivered on this commitment. We have worked with local authorities and private landowners so that the Government has committed Gathering ideas from charge points are sited in convenient, AIR QUALITY accessible and safe locations. We have to achieving reductions across the country put in place arrangements so that these Our ambition charge points will be maintained in order in the UK’s greenhouse In 2019, as part of our Air quality that customers can plan their journeys gas emissions and Emissions from vehicles using our strategy, we ran a multi-million pound with confidence. improvements in air quality. roads, particularly nitrogen dioxide ‘innovation call’ for people and We will support DfT in its (NO2), can pose a risk to people’s organisations with ideas about how We have been working with the Office health and wellbeing. We want to to improve air quality. for Low Emission Vehicles and the targets, and we have do all we can to improve the air quality Department for Business, Energy and Using our Air quality fund, we are now committed to ongoing for those who live near our roads. Industrial Strategy to develop the vision investing in several promising projects. improvement in our We are helping government implement for wider roll-out of rapid charge points across the SRN. This would help avoid environmental outcomes. its NO2 plan, published in July 2017, Reducing speed limits which is focused on meeting the the take-up of electric vehicles being We are now confident that reducing limit value for NO in the shortest slowed by customer concerns over We work with DfT, Defra, 2 speed limits to 60mph on certain timescale possible. their ability to complete long journeys. sections of road currently operating at the Office for Low Emission We are also working to accelerate the We have completed a detailed analysis the national speed limit could help us Vehicles and others to help take-up of electric vehicles, particularly Our actions of the 101 sections of our network deliver cleaner air. This is based on CARBON EMISSIONS targeting vans, as the fastest growing improve air quality, lower reported by the Joint Air Quality Unit evidence from our trials in 2019 on the The standards we publish in the Design vehicle sector. Our ambition carbon emissions and as potentially not yet compliant with M1 in South Yorkshire, together with manual for roads and bridges require reduce our impact on the limit value for NO2. our analysis of other traffic and air In March 2019, we agreed with Leeds In 2019, the government amended the greenhouse gas emissions to be quality data. City Council1 to implement an electric S Climate change act 2008 to commit the addressed in road project design. the natural environment. Providing transparency over van ‘centre of excellence’ and invest We are planning a pilot to reduce speed UK to cutting greenhouse gas emissions In 2019, we published our standard for our ambitions and actions almost £2 million of capital funding. limits across a small number of to net zero by 2050. The infrastructure sustainable development and design. This funding allowed the council to In 2019, we launched our new air quality locations, and we will publish where sector will need to support delivery of This requires road projects to meet purchase around 70 mostly small web pages (www.highwaysengland. these are in advance of go-live. this target. We believe that the roads a series of sustainable development electric vans for businesses in West co.uk/air-quality/), setting out our sector and the SRN have a key role to goals throughout the design lifecycle, Yorkshire to try for free for up to two ambitions and activities. We published, Installing tall barriers play in helping government achieve its including minimising greenhouse gas months. The council is also investing for example, the findings from our carbon goals. emissions. We have since embedded During the year, we completed studies almost £1 million of funding to manage extensive research programme, this standard in scheme design, to understand the feasibility of installing and support participants, and to provide Improving and maintaining our network including air quality pilot studies. for example on projects such as tall barriers of around 9.3 metres in 12 a ‘total cost of ownership’ report. is a carbon-intensive process. Our We will update the website regularly locations. Our monitoring showed that Sustainable development strategy states the Lower Thames Crossing. to show what we are doing, including The council launched the ‘try-before- our aim to reduce our carbon footprint they bought about a measured NO2 Through a new standard around climate, the areas where we will deliver you-buy’ scheme in January 2020, with reduction behind the barriers, helping and specifies that we “will work closely we are also ensuring that projects mitigation measures. 44 vans already available. We expect our closest neighbours have cleaner air. with our supply chain to reduce assess greenhouse gas emissions that many participants will go on to buy emissions from network-related activity”. as part of seeking planning approval. After further modelling, and with the their own electric vans when they see help of architects, we have been able the savings possible. Every extra electric We measure our carbon footprint: to develop a design that mitigates the vehicle will contribute to cleaner air on the total tonnes of carbon dioxide visual impact of these barriers, without the roads in the area, including on the equivalents from our activities. DfT’s compromising performance. We are M621 and the local roads. carbon target, in the Greening looking at several locations where such Government Commitments, requires a barriers may provide benefits. We are working to replicate this model 44% reduction by 2019–20, against the elsewhere. We have recently contracted 2009–10 baseline. We have exceeded with local authorities in Nottingham, this target, achieving a 49.6% reduction. Kent, Sheffield and Coventry to deliver further centres of excellence and are seeking additional investment opportunities in the second road period.

1 Leeds.gov.uk/campaign/ev-trials

58 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 59 Supporting the Greening Government Commitments continued

Reporting and our Noise barriers Strategic report Our carbon reporting2 CLIMATE CHANGE carbon calculation tool As part of our Sustainable development In 2019–20, we used part of our We record the greenhouse gases 4.6%<0.1% 8.2% strategy, we commit to adapting our Environment fund to deliver 16 noise generated by us and our supply chain, 1.3% network to a changing climate. barriers. We worked with our noise following the scope set out in the stakeholder group to prioritise Over the past year, we have been Greenhouse gas protocol1. We report: installation based on the overall reviewing the latest UK climate benefit the barriers would provide • scope 1 direct greenhouse gas projections and preparing our adaptation and the noise characteristics affecting emissions, such as the combustion report on our vulnerability to, and the local population. This stakeholder of fuel actions against, climate change. This group consists of government and • scope 2 indirect emissions of our complies with the Adaptation Reporting non-government organisations, purchased electricity, including the Power of the Climate Change Act. including Defra, the Noise Abatement electricity required to power our We will publish our report in 2021. Society, UK Noise Association and network 85.9% We have also taken the opportunity Environmental Protection UK. • scope 3 other indirect emissions, to embed climate resilience into the M1 junction 39 combined safety such as travelling on business – this standards in our Design manual for barrier and noise barrier project also includes carbon from our supply Scope 1: Direct traffic officer fuel roads and bridges. For example, In April 2019, we completed our M1 Scope 1: Direct estates gas usage chain, which form the largest part we published a new standard for junction 39 combined safety barrier Scope 2 and 3: Indirect emissions from undertaking assessment of climate of our greenhouse gas emissions office and network electricity consumption and noise barrier project. impacts and greenhouse gas emissions, We monitor the greenhouse gases Scope 3: Highways England business travel which should be applied as we develop We developed a combined product, associated with the construction and Scope 3: Highways England water road projects. We have also rolled out which had never been constructed maintenance of roads using our carbon consumption – embodied greenhouse gas training on climate change risk to our anywhere in the UK or Europe calculation tool. before, specifically for this location. 2 These figures do not include our supply chain. people and our supply chain. Suppliers working on all major projects Topographical constraints, such as We are monitoring best practice and regional operations are required the steepness of the embankment, in climate resilience across the to report on a quarterly basis, as a meant that locating a separate noise Installing energy-efficient infrastructure sector, and we are a minimum. Our supply chain reports their barrier and safety barrier would be member of the Infrastructure Operators materials, fuel, transport and waste equipment difficult, which led to this cost-effective, Adaptation Forum. innovative solution. through this tool, which creates a We recognise the benefits of being carbon dioxide equivalent figure. an energy and resource-efficient As a result of our work, we mitigated a In June 2019, we released an updated organisation. Installing energy-efficient NOISE POLLUTION noise important area and reduced night version of our carbon tool to allow equipment, for example, brings an time noise for over 430 neighbouring K 5 accurate reporting using the latest immediate and long-lasting energy Our target households. We have received positive consumption cost saving, along with feedback from the Parish Council and carbon factors. Our tool now includes This year, we mitigated 223 noise a corresponding carbon cost saving. local residents, who report a difference over 350 emission factors, an amount important areas, which are the places of carbon dioxide equivalent produced in the sound levels and that they are Over 80% of our company carbon identified by government where people able to enjoy their gardens again. by each unit of a product. It also allows footprint is due to the electricity we use suffer from the worst noise. As part of users to enter their own factors, if better to safely light and operate our network. this work, we used low-noise surfacing, We have started work on a similar lifecycle information is available for We have removed a large proportion of noise barriers, bypasses and noise combined safety and noise barrier new products. our road lighting or modernised to LED insulation. When combined with our on the M621 at junctions 6 to 7. lighting, where safe to do so. This has activity from the previous four years, Our supply chain can use our tool to Noise insulation evaluate what drives their carbon brought energy benefits, as well as we exceeded our target of mitigating footprint, helping them reduce carbon saving on future maintenance and 1,150 noise important areas by the end Through our noise insulation intensity in future. interventions. of the first road period. programme, we provide bespoke Following analysis of data received We have also invested in electric vehicle Our major schemes have helped our insulation packages, including upgraded through our tool, we are designing charge points. Over 95% of our network progress in this area. As part of our glazing and ventilation, to individual a new metric to roll out in 2020 to is now within 20 miles of a charging schemes, we deliver solutions such as houses to reduce internal noise levels. incentivise greater reductions in carbon. point, promoting electric vehicles and re-routing traffic away from population Our programme covers the whole of a reduced carbon footprint for every centres and incorporating noise our network, prioritising the locations We have also finalised a method of mile travelled. mitigation measures into our designs. with the highest level of noise. measuring customer carbon, which we will report in our sustainability report Low-noise surfacing In 2019–20, we insulated 369 properties for 2020–21. against noise through improved glazing. We generally use low-noise surfacing Our programme has provided real for new or replacement road surfaces, benefits to people and communities. unless there is a safety or engineering It has also delivered value for money, reason not to do so. This can be the with the monetised benefits of our case in areas where high friction mitigations exceeding their delivery cost. surfaces are required to reduce the risk of collisions.

1 Greenhouse gas protocol: The GHG protocol corporate standard classifies a company’s emissions into three ‘scopes’.

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We have, for example, included this Our biodiversity projects Up to the end of March 2020, we have We have worked closely with the Strategic report BIODIVERSITY concept in the revisions to our design spent around £7 million on 124 projects WATER ENVIRONMENT Environment Agency and other and assessment standards in the Since 1945, according to Defra, specifically targeted to support stakeholders to identify a programme Our target K 5 Our ambition Design manual for roads and bridges. there has been 97% loss of heath and biodiversity. These projects are at of partnership projects, funded through Government’s A green future: our 25 We have also incorporated Natural acid grasslands, 95% loss of neutral various stages of development, design We are committed to improving the our designated funds. These deliver year plan to improve the environment set England’s biodiversity metric into project grasslands and 87% loss of chalk and delivery, giving us a strong pipeline water environment, reducing flood risk high-quality projects, such as our A38 out its ambition to embed the principle design and assessment to support grassland in England and Wales. of schemes to be delivered. and improving water quality for those Stover Park Wetland Scheme outlined that new developments should result in better decision-making. Our projects provide an opportunity to using or living next to our network. in the case study below. In 2019–20, we delivered 46 biodiversity net environmental gain. In support of mitigate some of that loss by creating To meet our shadow running of a schemes, creating over 200 hectares of We have developed a programme this, and to be transparent about our and improving habitats for wildlife. biodiversity metric, we have adopted species-rich grassland. These support a of schemes to address high-priority biodiversity performance, we have taken the ‘Defra Metric 2.0’. We will use this We published our biodiversity action range of native wildflowers and pollinator locations. Wherever possible, we look opportunities to adopt this concept. to report our performance in this area. plan, Our plan to protect and increase insects, such as bees and butterflies, to mitigate these through the use To date, the metric has demonstrated biodiversity, in 2015–16. Since then as well as a wider range of invertebrates, of sustainable drainage systems. that we now have projects which are we have published an annual update amphibians, small mammals and birds. identifying opportunities to deliver net on delivery of the plan. gains for biodiversity.

GREEN SCHEMES: ILLUSTRATION OF HOW A REED BED A38 STOVER PARK CASE STUDY SYSTEM WORKS WETLAND SCHEME

Stover Lake is a local beauty spot and part of a 1 2 3 4 Site of Special Scientific Interest Country Park, owned by Devon County Council. It is next to the ROAD SEDIMENT POND REED BED LAKE A38 near Newton Abbot. The lake was previously Rain falls on the road, Silt and other solids in the Interceptor chambers collect Roots soak up soluble Cleaner water feeds renowned for its lilies and invertebrate diversity, flushing vehicle contaminants road runoff settle at the oil-based materials from materials (zinc and copper) into the lake especially dragonflies, but over the last 20 years into road gullies bottom of the pond, which the road runoff, which are and store them, with the the lake has been slowly deteriorating due to are manually removed every manually removed every year reeds replaced every 10 years contaminated silt from A38 runoff water. The main year to a suitable waste site to a suitable waste site aim of our project was to improve the quality of water entering the lake. Road gully Typical Our original scheme involved building large-scale water level interceptors within the highway boundary. By partnering with Devon County Council and working with Natural England and the Environment Agency, we were instead able to design a sustainable drainage system. We installed two reed bed systems within the parkland, significantly improving the water quality Road entering the lake and the associated biodiversity carriageway within the park. Inlet pipe Inlet pipe Outlet pipe Stone base Plant growth Our scheme includes a raised platform for the public layer to view the site along with three information boards. This has resulted in many positive conversations between the public and the park rangers. Red levelling sand

62 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 63 Our risk approach | Managing our risks

MANAGING Strategic report OUR RISKS

We work closely with our Our risk management process focuses All our people are encouraged to Governance Risk appetite partners and stakeholders on the early identification, assessment identify, prioritise, manage, monitor and and management of risk. Our underlying report all risks relevant to their working The Board has overall responsibility to mitigate the impact of risk for determining the amount and type principles are that risks are: area. We carry out periodic risk reviews The Board is responsible for defining the level and type of risk that the of risk that we are willing to take to across our broad range of across all business areas throughout company is willing to take and ensuring we remain in line with our strategy. • identified, assessed and mitigated meet our strategic objectives, known activities at operational, the year. We use the outputs to review, Our risk appetite is cascaded through our organisation through our policies, in line with our risk appetite as our risk appetite. Oversight of the refresh and report our risk register procedures and delegated authorities. tactical and strategic levels. • monitored continuously information to the appropriate levels risk management framework and its • reported through our established of the business. effectiveness is delegated to the Audit We face various risks in the operation of our network, and through our procedures and Risk Committee. The outcomes construction and maintenance activities. While it is not appropriate to from their work feed into the Board’s eliminate all risks inherent in our activities, we take all reasonable measures All risk aligns to our strategic objectives, wider business discussions. to minimise the potential impact. and our Board and Executive team work together to identify, review and monitor As Accounting Officer, our Chief these throughout the year. Executive is responsible to Parliament for the stewardship of public money and We work to reduce the potential for harm or loss he exercises his delegations in line with of life for the public, road users and our people. the Finance and Reporting letter and Health, safety Accounting Officer letter, issued by the and wellbeing Key elements of our risk management process DfT, our Shareholder. Each Executive Director owns the risks relevant to their A. Risk planning: Our policy, processes area of responsibility and delegates the and procedures define the external or internal management of them to the appropriate criteria to be considered when identifying We want to be trusted to deliver our and managing risk. functions within the business. commitments and be respected by those who B. Risk identification: We have a defined Identification of risks use our services. We work to ensure that any process to help identify, recognise and Customer risk outcomes only have the potential for describe opportunities and threats to strategic, Identifying risk is a continuous process. A. Risk planning programme, project and operational objectives. low-to-medium impact on our customers The Board and our Executive team and stakeholders. C. Risk assessment: We assess the probability complete a full refresh of the corporate and impact of all risk against a matrix that recognises that any risk has the potential for risks and their mitigations on an annual multiple impacts. We encourage the risk owner basis. Our Executive team work with We identify risks which might impact our ability B. Risk identification to identify the most important impact and this their own teams to identify the risks to meet key performance goals and capital helps us prioritise our response. facing their parts of the business. outcomes. We adapt our approach to optimise D. Risk evaluation: We compare the level Delivery and meet our short-term and long-term targets. of risk assessed with our risk appetite (set by Each of our major programmes relies the Board) to help the risk owner prioritise on a Head of Risk to oversee the C. Risk assessment management activity. identification and coordination of E. Risk treatment: We identify actions to programme and project risk. Oversight increase opportunities and reduce threats is provided at portfolio level by a Head (putting controls in place), and identify any of Profession for risk management. This We are willing to accept some circumstances further activity that will help the risk owner role is linked to the Head of Corporate where we will balance financial risk to manage the risk. D. Risk evaluation Risk Assurance to ensure cohesion at Financial improve our long-term financial performance, F. Risk review, reporting and escalation: a corporate level. governance operational performance and capital outputs. We structure this area so that: Decisions on these will be taken in accordance • risks and opportunities are managed Evaluation and management with our internal control and governance G. Communication and consultation G. Communication in line with our risk appetite of risks arrangements.

E. Risk treatment reporting and Risk escalation review, F. • risks are updated as additional activity to manage them is delivered • risks are escalated to senior management The business considers both external for information, review and/or further and internal risks that could affect our management ability to achieve our objectives. G. Communication and consultation: We use a risk scoring matrix so that We consult and communicate with internal and external stakeholders through all stages risks are evaluated consistently and of the risk management lifecycle. This helps us consider likelihood, impact and timing. Highways England risk management process increase understanding and improve our risk based upon core requirements of ISO31000:2018 management capability across the business.

64 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 65 Our risk approach | Managing our risks continued Strategic report

When we evaluate risk, we consider the A formal review is completed on a who identify the risks facing our inherent or ‘raw’ risk, which is the level quarterly basis, and the results reported business and share expertise and good WE WORK TO REDUCE THE of the risk without any mitigating action. to our Executive team and the Board. practice. As this network will be vital We also consider the residual or in increasing capability across our POTENTIAL FOR HARM OR ‘current’ risk, which is the risk that Developing capability company, we will increase their role as LOSS OF LIFE FOR THE PUBLIC, remains after we consider the effect part of the roll-out of the risk recording We have deployed an enterprise-wide of mitigating actions and controls. tool in 2020–21. risk recording tool across our major ROAD USERS AND OUR PEOPLE. Any significant risk is escalated to the projects environment to improve the way Assuring our risk Board for its consideration. For the that we record and report risk. We will Board to accept it as a principal risk, roll out this tool across the rest of our We have several teams that work it needs to be either cross-organisation, company in the coming year. together to help us manage risk fast paced or have the potential to properly. Each team has a unique Alongside developing our system jeopardise our business. If acknowledged, perspective and specific skill sets. functionality, we have increased the the risk is added to our Board-level Their duties are coordinated carefully capability of our people. We have component of our corporate risk so that there are neither gaps nor developed online risk management register. This ensures that the Board duplication of activity. We have created training, aimed at our project risk can maintain visibility of its status and a four lines of assurance model and this managers, and risk awareness training mitigation plan through the company’s provides the Board with an appropriate for non-specialist staff whose role monthly corporate reporting process. level of comfort that we are managing involves risk management to a lesser risks properly. degree. We have established a network of risk champions across the business,

Four lines of assurance model

We use each line of assurance to provide a level of oversight. This model allows each risk owner to draw from a breadth of information and rely on assurances obtained at the most appropriate level, relevant to the risk being managed.

Internal and External and Management Corporate independent independent control oversight assurance assurance providers providers

1st line of assurance 2nd line of assurance 3rd line of assurance 4th line of assurance

Assurance through: Assurance through: Assurance through: Assurance through: • Business reporting • Policy compliance review • Internal audit • National Audit Office • Applying operational controls • Inspection • Programme assurance • Transport Focus • Authorisation and sign-off • Quality assurance reporting • Health and safety assurance • ORR • Business and project review • Counter-fraud • DfT client and shareholder teams • Risk reporting • Contract assurance • Infrastructure and Projects • Risk assurance Authority • Other

Risk content: accountability Risk process: accountability Risk content and process monitoring • Implement actions to manage • Establish policy and process for • Liaise with senior management and the Board and treat risk risk management • Rationalise and systematise risk assessment and governance reporting • Comply with risk management • Provide our strategic link for risk, • Provide oversight on risk management content and processes process including oversight of risk themes • Provide assurance that risk management processes are adequate • Implement risk management and trends, synergies and and appropriate process where applicable opportunities for change • Execute risk assessments and • Provide guidance and identify emerging risk coordination across the business • Liaise between the first, third and fourth line of assurance activity

66 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 67 Our risk approach | Principal risks and uncertainties

Strategic risk Summary of mitigating action Risk commentary Strategic report

PRINCIPAL Safety risk 1 K 1 Risk rating Raw Current RISKS AND Ineffective control over safety, health • Our contractual obligations are set to ensure certain health and We have seen an increase in our and wellbeing could lead to an increase safety standards are met, including the use of competent contractors supply chain accident frequency rate in our people and road workers being at all levels. from 0.05 to 0.07 (from 20 to 30 UNCERTAINTIES physically or mentally harmed • Our Health and Safety Management System incorporates policies RIDDOR accidents) and reduced our and processes that direct our workforce and ensure the control of traffic officer and employee accident contractors. frequency rate from 0.07 to 0.01 (from 7 to 1 RIDDOR accidents). • We have an ongoing monitoring regime, including inspections, Read more on page 78. leadership tours, accident reviews and compliance and assurance reviews. Our risks are linked to the company’s We rate our risks • We have dedicated health and safety professionals across each strategic objectives and KPIs. To provide region and programme team who provide health and safety advice and support to the business. a broader sense of the level of exposure, • Our wellbeing programme is in place and progress is monitored we group all risks under our three High risks on a quarterly basis. imperatives: safety, customer service, are events that we consider have a high probability of K 1 and delivery. Applying these themes occurring and which could have an extreme or major Safety risk 2 Risk rating Raw Current impact if they do so to a reporting dashboard allows the Ineffective interventions or investments • We have Executive and Board-level committees to assess and In 2018 (the last full year for which for road user safety might lead to an approve investment in our safety interventions and monitor the we have validated data), there was Board and our Executive team to focus increase in road users being harmed success of their implementation. an increase in the number of killed or their attention on areas of significant • Our National incident casualty reduction plan and Regional incident seriously injured cases compared to Medium risks 2017, although there was an overall movement, rather than discussing each casualty reduction plans provide detailed programmes of are events that we consider are likely to occur and interventions to reduce incidents on our network. reduction in the number of reported incidents. More information about on a risk-by-risk basis. It also provides • We track, monitor and report on the overall levels of casualty which will have a significant impact if they do so road user safety interventions can incidents to our Executive and Board-level committees to help a different lens to show the data, be found on page 79. inform future investment and interventions. recognising that risks can be assessed against more than their category, such as Low risks Safety risk 7 K 1 Risk rating Raw Current financial, operational and environmental. are events that we consider are unlikely to occur and A significant asset failure on our network • Our standards for the design, operation, inspection and maintenance We continually monitor the condition which will have an undesirable impact if they do so could result in a major incident, leading of assets are defined by our Chief Engineer in the Design manual for of our roads and carry out to death, injury or vehicle/property roads and bridges. investigations of any potential defects. damage • For structures, including geotechnical structures, we have an Our maintenance and renewals established design-check process that includes oversight by programmes are based on the needs Our risk assessment independent specialists working for our Chief Engineer. of our customers and our assets in each region. More detail on our • We have an incident reporting process and a programme of Extreme Medium Medium High High High approach can be found on page 89. The risk heat map illustrates the relative positioning of our inspections in place. These are defined within the Design manual for principal risks without control (raw) and with control applied roads and bridges and are completed by either our inspectors or our (current). We set out further details on our principal risks contractors, including our PFI concessionaires. This is complemented below, explaining how these risks link to our three imperatives Major Low Medium Medium High High by our Asset data management manual and inspection assurance process to ensure that key inspections are carried out on time. and summarising our key risk mitigation strategies. 1 2 3 4 1 3 4 7 5 6 7 8 5 6 8 • We use a suite of asset management systems to hold, manage and Safety Ineffective control over health, analyse data to identify needs and report performance. 1 safety and wellbeing threats Severe Low Low Medium Medium High 2 Safety Ineffective road user Customer services risk 3 K 2 Risk rating Raw Current 2 safety interventions We do not manage our company • We have developed a corporate back-story to build our reputation. We made good progress this year Customer Managing our company narrative Difficult Low Low Low Medium Medium 3 Impact narrative effectively, which might result This is applied across all communications, both internally and delivering to plan and with strong around our deliverables in reputational damage that undermines externally. Our Corporate Editor reviews key documents to ensure financial results. For further Customer; Delivery Ineffective programming 4 our capability and achievements we use a consistent tone of voice. commentary on our performance, of designated funds see our Chief Executive’s statement Undesirable Low Low Low Low Low • We use our supply chain Engagement Council to communicate Customer 5 Public perception on smart motorways key messages and briefings with our contractor community. on page 10. Safety; Customer; Securing our information • Our strategic stakeholder engagement is supported by a full 6 Delivery communications plan, which is reviewed regularly to ensure it is Opportunity relevant and consistent. Safety 7 Major asset failure Delivery Environmental impact through 8 company operations Customer services risk 5 Risk rating Raw Current Very Unlikely May Likely Almost Stakeholder confidence in our smart • All smart motorway safety, operation and performance data is Over the course of this financial year, unlikely happen certain motorway operations is low, which analysed. Trend information is shared with stakeholder groups, such customer confidence in the safety of could leave the public feeling as the Smart Roads Expert Advisory Group. This helps strengthen our smart motorways was low. This is unsafe while driving on them, undermine our message and improve our relationships with these stakeholders. unacceptable, and we are determined Likelihood our customer performance and reduce • We have a portfolio of road user campaigns to inform the public to restore public confidence through the effectiveness of our safety campaigns wand influence safer driving behaviours. Campaign performance the delivery of a series of measures Raw risk (without control applied) is monitored by the Board and our Executive team. contained in the Secretary of State for Transport’s Smart motorway safety Current risk (with control applied) • Our strategic stakeholder engagement activity is supported by a full evidence stocktake and action plan, communications plan. This is regularly reviewed to ensure that it is published in March 2020. More relevant and consistent. information on this can be found on page 54.

68 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 HIGHWAYS ENGLAND ANNUAL REPORT AND ACCOUNTS 2020 69 Our risk approach | Principal risks and uncertainties continued

This year, we focused our efforts Training Strategic report Strategic risk Summary of mitigating action Risk commentary Modern slavery on raising fraud awareness through Our counter-fraud team provide advice targeted training events and the use of We support government’s objectives to and training about modern slavery and Customer services risk 4 Risk rating Raw Current internal social platforms, such as Yammer. eradicate modern slavery and human human trafficking, supported by our trafficking. We recognise the significant modern slavery policy and procedure. Ineffective programming or investment • We manage investment of our designated funds portfolio through a Our £654 million designated fund Our counter-fraud culture is maturing of designated funds could impair our dedicated investment decision committee, and we monitor delivery programme provides ring-fenced role that we play in both combating This year, we provided specific training throughout our organisation, with ability to deliver designated fund to minimise potential over-programming. funding to improve the surroundings it and supporting victims. We are to a range of key people across our appropriate channels in place for our requirements and reduce benefit to • Monthly ‘surgeries’ are held to improve liaison and share best of the SRN as well as supporting and committed to ensuring our supply chain operations, major projects and customers and communities practice across the delivery arms of the business. This provides protecting quality of life. We are always people, customers and our supply and business activities are free from looking at new ways of working with commercial and procurement teams. stronger links between the Designated Funds Programme Office chain to raise concerns safely. Our suite ethical and labour standards abuses. and delivery teams. our stakeholders to use their expertise of policy, processes and procedures We are currently developing a new to hep us deliver our schemes more • We use the Air quality fund and Innovation fund to engage across a The steps we have taken to-date include: effectively. For more information, reflects and builds upon current awareness package specifically for wider stakeholder base to generate more investment opportunities. please see page 101. legislative requirements. These should People modern slavery. This will be rolled out be understood by all staff, no matter We carry out pre-employment checks across the relevant parts of the business Delivery risk 6 Risk rating Raw Current what their role. on all directly employed staff. Only in 2020–21. agencies on approved frameworks are Inappropriate information and data • Our policies, procedures and processes define the governance, Since 2015, we have increased our We have improved our understanding Responding governance, security and management control and management activities over any personal and sensitive capability and capacity to understand of our risk profile. This captures internal used for temporary employment, and Any concerns about modern slavery are might lead to the inefficient delivery information that we hold or use in the normal course of our work. and improve on our data management and external economic crime risks, these frameworks include a standard taken seriously and managed sensitively. of our business objectives • We have a defined risk assessment framework for both information and security practices. We are including those introduced through requirement to provide assurance that This includes referring to external and operational technology, where we risk assess and assure the improving our information rights cybercrime. We base this on industry pre-employment checks are conducted. agencies, such as the Gangmasters practices and work proactively with design, build and implementation of any technology solution on and government information, updated and Labour Abuse Authority and the and off our SRN. our supply chain to reduce the risk of We have a range of policies and non-compliance, while promoting the on an annual basis. We use this Home Office, where appropriate. • We monitor across industry, accept government best practice, procedures designed to protect fair and ethical handling of personal and regularly review all significant data risks at the Board and the information to carry out proactive information. our people from poor treatment or Audit and Risk Committee. testing over our control activity to exploitation. These comply with all improve our resilience. relevant employment law and the K 5 S Delivery risk 8 Risk rating Raw Current We have seen an increase in the number Advisory, Conciliation and Arbitration of fraud allegations from external Service code of practice. These include Insufficient identification or prioritisation • Our Sustainable development strategy and action plan for the first We work closely with government to the provision of fair pay rates based of environmental improvements in the road period describes how we will deliver against our aspirations address air quality and have advanced sources. All allegations are investigated design of company operations may in this investment period. plans to understand our air quality in line with our policies. The Anti- on nationally-negotiated terms and lead to our investment activities • We employ environmental specialists on all our major project challenges and to introduce Economic Crime Group and the conditions of employment. We also either damaging or failing to improve schemes who monitor environmental performance and escalate mitigations where possible. We have Audit and Risk Committee receive provide a range of benefits, including the environment. This could impede issues quickly to senior management. delivered 1,174 noise improvement reports on the work of the counter-fraud health and wellbeing support and our ability to meet legislative and interventions to those communities • All our projects are supported by environmental advisers to promote access to training and development Delivery plan commitments on air who live and work close to our roads team, the results of all investigations good technical practice from our supply chain, challenge poor quality, noise and biodiversity, and 124 biodiversity schemes. You completed and recommendations for opportunities. practice and provide environmental technical assurance to the and harm our neighbours can read more about our air quality project teams. future prevention. actions and how we protect the Where changes to employment, • Our Air quality fund and Innovation fund support additional environment on page 58. Working proactively with our supply work, organisation, policies and interventions across our operations. chain, we are raising the profile of procedures are proposed, we economic crime risk across the sector. communicate, consult and negotiate We have created the Supply Chain with the trade unions, as appropriate. Economic Crime Group, a forum To engage and involve our people in In-year activity We managed the impact of the Economic crime which brings together our supply chain matters which affect them, we hold unfunded cost on this financial year to highlight areas of commonality and regular staff briefings and consultation Good risk management is an integral through a combination of expenditure We refer to the collective of fraud, share best practice. with a range of staff forums, including part of the way we lead, direct, manage reductions from across the business bribery, corruption, money laundering BAME (Black, Asian and minority ethnic) and operate our business. Risks can and securing a contribution from DfT. and modern slavery as economic crime. We fully align to the work of the Cabinet and LGBT+. crystallise quickly and in-year we had to We are determined to manage this risk Office in improving counter-fraud respond to three separate risk events. Brexit across our company and our supply capability across government. This year, Procurement and our supply chain chain. As well as the tragic human the Cabinet Office confirmed our own Most of our products and services are Our response to our customers’ reaction On 31 January 2020, the UK left the EU consequences, exposure could lead assessment of our performance against purchased from UK or EU-based firms. to smart motorways and the impact of in accordance with Article 50 of the EU’s to financial loss or delays to delivery, the Government Functional Standard These firms may also be required to Covid-19 are discussed on pages 54 Lisbon Treaty. During the two-year and might impact on customer and ‘GovS 013’. They recognised that we comply with the requirements of the UK and 56. negotiation period, there were no stakeholder confidence in how we are fully compliant in all aspects of Modern Slavery Act (2015) or similar significant changes in legislation, The third event related to the impact that respond to any issues that we find. the standard. Our ability to deal with legislation in other EU states. regulation and funding arrangements a reclassification of recoverable VAT by economic crime has increased during that impacted our company. In line with our values, we require all A significant number of products are HMRC might have had on our design, the past financial year and we are our people to act honestly and with purchased through our supply chain, build, finance and operational contracts, We have worked closely with DfT on progressing a risk-based programme integrity, safeguarding the public funds whose Supplier Code of Conduct and hybrid road schemes funding the consequences associated with of proactive work to further reduce the for which we are responsible. includes a provision around forced and delivery. We maintained an open leaving the EU as part of Operation level of risk that we face. labour. dialogue with DfT and HM Treasury Yellowhammer. All instances of economic crime will to discuss our interpretation, and the be dealt with effectively, ethically Where possible, and consistent with You can read more about our work on impact that reclassification would have and in accordance with the law. the Public Contracts Regulations, Brexit planning on pages 29 and 93. on current and future funding. This led to we build long-standing relationships an agreement on a final back tax figure. with our supply chain.

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OUR FUTURE Strategic report VIABILITY

The Board has assessed Funding company, our creditors can rely on Planning Principal risks These scenarios cover all our principal the viability of our company government security, and the statutory risks and were considered in terms of We are funded from the public purse obligations of the Secretary of State for For each road period, we prepare a Linked to our ability to meet our the impact on our three imperatives and over the five years to March by grants-in-aid from DfT. Before the Transport, to settle any liabilities due. Strategic business plan and a five-year strategic objectives, we identify our our ability to deliver our second road 2025, in line with the five- start of each funding period, we work Delivery plan, supported by an annual principal risks (pages 68 to 70) through period commitments. The Board considered five years to be year road investment period with DfT and ORR to determine our Delivery plan update. Together, these robust assessment. This includes a outputs and provide a high degree an appropriate timeframe, given the explain how we will deliver our strategic continuous cycle of reporting and review Based on this assessment, the Board starting from 1 April 2020. of certainty over our capital and certainty of our funding settlement for outcomes, measure our success and at all levels of our business. is content that we have appropriate resource funding. This is detailed the next five years. identify our future improvement plans. arrangements in place to minimise We analyse our company’s resilience The Board reviews our going concern in the Statement of funds available the impact of these scenarios and In March 2020, government published Our performance is monitored by the ORR to the potential impact of these risks, on an annual basis. It considers and set out in government’s annual can ensure our company’s resilience. RIS2, setting out their strategic vision on a quarterly basis, and we refresh and based on: government funding, our business plan, resource delegated expenditure limit. for the SRN and how money will be publish an annual Delivery plan update. As such, the Board has a reasonable our risk management framework and • the effectiveness of mitigating actions Our funding for the next road period will invested to operate, maintain, renew and We use our plans, budgets and related expectation that our company will our corporate risk register, which improve our network. The Statement of to reduce either likelihood or impact continue in operation and meet its includes our principal risks. It also takes be provided through the National Roads financial models to project cash flows, funds available details £27.4 billion of • the Board’s conclusions from its liabilities as they fall due over the period into account our current position at the Fund, which reserves the revenues of monitor financial risks and our liquidity capital and resource funding to meet regular monitoring and review of risk to March 2025. end of this, the first road period, and Vehicle Excise Duty within England for position, and forecast future funding our commitments for the financial years management and internal control our plans for the second road period. road investment. As a DfT-owned requirements relevant to our Licence. from 2020–21 to 2024–25. systems, as described on page 148 In January 2019, we presented our Draft strategic business plan to We also consider our company’s ability government and the ORR, in which we to withstand severe yet plausible set out our proposals for the next road scenarios, as shown in the table below. period. Our final Strategic business plan is due to be published in summer 2020. Imperative Scenario Link to our principal risks A significant safety event occurs Safety risk 1: Ineffective control over on our network which leads to health, safety and wellbeing threats Safety injuries and fatalities to our Safety risk 2: Ineffective road user people, road workers or road safety interventions users AS A DFT-OWNED COMPANY, Safety risk 7: Major asset failure A significant adverse event Customer services risk 5: Public OUR CREDITORS CAN RELY ON occurs which disrupts the perception on smart motorways operation of our network or Customer Delivery risk 6: Securing our information GOVERNMENT SECURITY, AND THE undermines the public’s STATUTORY OBLIGATIONS OF THE confidence in our company Safety risk 7: Major asset failure We are unable to deliver planned Customer services risk 4: Ineffective SECRETARY OF STATE FOR TRANSPORT, enhancements to the SRN due to programming of designated funds Delivery ineffective planning or Delivery risk 8: Environmental impact management TO SETTLE ANY LIABILITIES DUE. through company operations Delivery risk 6: Securing our information

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