2nd Local Transport Plan Progress Report

11.2 Expenditure in LTP2 Period

11.2.1 The annual LTP funding for Greater Manchester consists of three main parts:

• Integrated Transport Block (ITB): allocated as supported borrowing as a block for Greater Manchester, and apportioned amongst authorities by local agreement
• Major schemes: allocated directly to the relevant authorities, as supported borrowing
• Maintenance: allocated directly to highway authorities, as supported borrowing and direct grant

11.2.2 SEMMMS funding came as a discrete amount alongside the annual LTP settlement.  Government's contribution to the Transport Infrastructure Fund (GMtif) was also identified as a specific amount within the LTP settlement.  In addition, there were also some supplementary or emergency maintenance bids, or those associated with Primary Route Network or detrunking maintenance.

11.2.3 Government funding was often supported by other capital sources of funds, for example additional prudential borrowing by individual councils, European and regeneration grants, and funds from private developers.

11.2.4 Some supporting activities which are not suitable for capital funding, such as some routine maintenance, road safety educational and publicity work, and subsidised public transport services and fares, come from Authorities' revenue budgets.

Integrated Transport Block

11.2.5 The Greater Manchester authorities operated their own agreed formula to try and match resources to effective delivery  of the LTP strategy as described in paragraph 10.1.1.  This resulted in the following outcome:

• 20% distributed to councils on the basis of road safety needs
• 19% topsliced for Quality Bus Corridors
• 35% allocated to GMPTA for other public transport schemes to improve congestion, accessibility and air quality throughout Greater Manchester
• 26% allocated to councils to spend on other transport schemes to improve congestion, accessibility and air quality.

11.2.6 The table below shows Integrated Transport Block Funding allocated and spent over the first two years of the second Local Transport Plan period. Over this period, 97% of the Integrated Transport Block allocation has been spent by the Greater Manchester authorities. 

11.2.7 The table below compares allocations and spend by authority. Note that the figures include the resources each authority has had to implement QBC schemes. This was initially given en bloc to GMPTA and then subsequently redistributed to individual authorities according to the work programme. The figures also do not include the Greater Manchester transport infrastructure fund or SEMMMS.

11.2.8 When delivering capital projects, especially those requiring consultation and planning consents, or constrained by operational factors, it is often the case that spending is spread unevenly across years. The effect of this can be seen in the comparison between allocated and actual spend by GMPTE, which made a £5 million contribution to the Manchester Airport 3rd platform project across three financial years. Whilst this commitment was made some time ago, the final payments will not be made until after the completion of the project in December 2008,  representing a significant carry over between financial years.

11.2.9 The table overleaf shows the Greater Manchester spend by scheme type category over the 1st two years of the LTP2 period.  It also shows the spend for the financial year predicted at the start of the financial year for 2007/8 and for 2008/9.  The final column shows explanations of differences between predicted spend in 2007/8 and actual.  The Leigh Salford Manchester guided busway scheme is excluded, as work on this is being progressed through the Transport Innovation Fund. 

SEMMMS

Transport Infrastructure Fund