Transcript Document
Public Transport
Organisation and financing in
the practise
- United Kingdom Vince Christie
Local Government Association
Transport Policy Officer
November 2005
Introductions
Mainly concentrating here on bus funding
issues rather than rail, although some mention
of rail.
Apologies for technical acronyms!
There are:
Issues of how public transport is funded
Issues of how local government is funded in
order to itself fund public transport
Local Government I.
Local Government Association formed April 1997 –
formerly AMA/ADC/ACC. Also WLGA/ALG and
COSLA/ALANI for Wales/London and Scotland/N
Ireland. GLA for London-wide government outside
these.
London legislation – different from everywhere else in
a number of respects
Metropolitan authorities and PTAs/PTEs – Transport
Acts 1968 and 1974
Local Government II.
Counties and districts in some areas - from even
more variations before 1974
More unitary authorities in the 1990s –
Scotland/Wales and parts of England
But boundaries now perhaps less convenient for
public transport strategies
Wales and Scotland spiralling off from England now
in transport and local government legislation after
devolution
Transport legislation I.
Transport Act 1985
privatisation of former NBC and STG
(Scotland)/public sector companies set up – led to
selling of PTE bus companies but 17 municipal
companies left/commercial operations of 70 to
80% of network/service reductions evenings and
Sundays and an ‘unmet need’ provision which is
funded by local authorities
Transport legislation II.
London legislation – public control of network but
private operation via route tendering
Northern Ireland – still public control.
Transport Act 2000 – some changes but not what
local government wants
Railways Acts – various – privatisation and all the
troubles since/diminution of the PTE role this year
except for Merseytravel
Local Government finance I.
Complicated!
Three year spending settlements – annual updates for
new burdens – this year LGA announces a ‘black
hole’ of which £300 million revenue resources
shortfall
Capital and revenue issues – Transport Capital via 5
year Local Transport Plans (LTPs) published on
www.ltpnetwork.gov.uk
No ring fencing is LGA principle!
Local Government finance II.
Concessionary fares via districts (EPCS) – is it a
subsidy to public transport or the user?
Fuel Duty Rebate/Bus Service Operator Grant –
similarly is this a real subsidy?
No VAT (sales tax) on public transport fares – same
point
Bus revenue support via counties and unitaries (in
EPCS block of RSG)
Local Government finance III.
Government trying to get more of a regional
dimension led by Scotland and Wales, but upset by
vote against in NE England – some issues such as bus
route funding must be more local. However some
regional transport funding allocations are to be
made.
Transport Innovation Fund (TIF) is the latest
Government initiative – July 2005 – linked to road
pricing experiments and public transport
improvements as part of a package
Local Government finance IV.
Ten Year Transport Plan (10YP) – with targets and
private investment assumptions - first published 2000
– seems it is being quietly forgotten.
Ambitions in 10YP for light rail – but arguments
since on funding – who to blame
Light rail and utility diversions
Politics of light/heavy rail versus guided bus option
Local Government finance V.
Targets for bus patronage – but we say deregulation
needs to have tools in the toolbox see www.lga.gov.uk
and www.pteg.net
Community railways is latest local rail idea this year,
which could involve more local government funding
and local responsibility in the end – but where is the
money to come from – longer term closure worries?
Arising from how distribution of local
government spending is decided
nationally
(in England)
Rural and urban issues - current circumstances very
different esp regarding accessibility and congestion
policies
North and south balance in spending; eg priority for
Crossrail/Olympics around London
Formula funding issues – how to make them fair –
not just an issue for transport of course
Local funding - S106 planning agreements limited,
some parking/road pricing income esp London, no
property taxes etc at present for infrastructure
although some would like them
Bus operators’ appear to have opposing views to
local government about UK legislation on bus
regulation – many of them operate in both London
and on the continent and operate franchised trains in
the UK
London – the Mayor and TfL – usage up but costs
high and some bold Mayoral decisions eg up to 150%
fares increase on single fares on underground from
Jan 2006 to encourage electronic ticket use – will
disadvantage tourists
Government and/versus local government –
always a tension over funding split via DfT,
including extent of private investment, and via
ODPM which gives overall local government
settlement –
Ministries often thinking of local authorities as
‘delivery agents’ and wanting performance
statistics at the same time as not giving the
legislation necessary to allow delivery
everywhere.
The future
We want better bus legislation to make all tools
available as needed for all areas – no common
template
We want to preserve and develop local rail
networks and maintain network benefits such as
through ticketing, there is a need for capital
investment on rail bottlenecks
We want good accessibility to essential services in
both rural and urban areas
We want funding mechanisms which allow
authorities to deliver what is necessary locally,
in the light of local economic, social and
environmental objectives
We want a modern and efficient local
government trusted by central government and
not subject to invasive performance monitoring
at every stage
Main Acronyms
DfT – Department for Transport
EPCS – Environment Planning and Cultural
Services (I think)
ODPM - Office of the Deputy Prime Minister
PTA/E – Passenger Transport
Authority/Executive
PTEG – Passenger Transport Executive Group
(public transport managers in PTEs)
RSG – Rate Support Grant
TfL – Transport for London
Thank you
for your attention!
Contact:
Vince Christie
Local Government Association UK
E-mail: [email protected]