National Roads Maintenance Review Phase 1 Report

1 Introduction

1.1 Context

Scotland's road network, at over 55,000 km, is one of the country's largest community assets, encompassing all roads, footways, cycleways, bridges, street lighting and road signage. It plays a vital role in supporting Scotland's economy by facilitating the movement of people, goods and services and connecting people with economic opportunities, often providing a focal point and sense of place. On a local level, the road network is essential for the long-term sustainability and development of Scotland's communities and the well-being of its residents.

Local Authority roads, bridges and street lights are the backbone of the Scottish roads network, accounting for over 90% of all of Scotland's roads (by road length)[1]. In 2009/10, the 32 local authorities spent over £490 million[2] on maintaining their 52,000 km of assets. These local authority assets are pivotal in ensuring not only access to the trunk road network, but also in securing effective movement within and between communities by road users, walkers, cyclists and equestrians.

With almost 10% of Scotland's roads, motorways and trunk roads are a crucial part of the network, carrying over 30% of all vehicle traffic movements. In 2009/10, over £160 million was spent on maintaining Scotland's trunk road network[3].

In the last 15 years, total road usage has increased by almost 30%; trunk roads usage has risen almost 40%, whilst the increase in the use of Scotland's local authority roads rose by around 20%[4]. This continued growth in usage, together with a forecast traffic growth of 25% between 2005 and 2022[5], has an impact on the level of maintenance required on the Scottish road network. The higher the volume and weight of traffic, the more frequently maintenance is required to sustain the road's lifespan.

Transport infrastructure is critical in enabling and securing sustainable economic growth. The Eddington[6] study for the Department of Transport highlighted a number of micro-drivers influenced by transport, including:

  • improved business efficiency, arising from time savings and journey time reliability for business travellers and freight;
  • increased business investment, supported by economies of scale; and,
  • more efficient functioning of the labour market.

The study also highlights the importance of effective prioritisation when finances are scarce, and the value in maintaining and making better use of current network assets. Given the pivotal role the road network plays in assisting economic growth, timely and effective maintenance is essential.

The recent Audit Scotland report highlights, that despite the £650 million spend on maintaining Scotland's roads in 2009/10, there has been a deterioration in the condition of the network (see summary Table 1 below). Construction industry inflation, heavily influenced by the price of oil, has eroded the real term value of this funding. Average inflation in 2009/10 for 3G contracts between Transport Scotland and its Operating Companies was in the region of 4%.

Table 1: Headline statistics from Audit Scotland's report
  Change in road maintenance spend Equivalent change in purchasing power Change in traffic volumes Roads in acceptable condition[7] Headline Backlog
Local Authority Roads + 12% (2004/05 –2009/10) - 13% (due to road maintenance industry inflation) + 4%
(since 2004/05) + 22 %
(over last 15 years)		 66%
in 2010
70%
in 2005		 £1.54 billion (£640 million more than  in 2004)
Trunk Roads - 12% (2004/05 – 2009/10) - 32% (due to road maintenance industry inflation) + 3%
(since 2004/05) + 37%
(over last 15 years)		 78%
in 2010
84%
in 2006		 £713 million (£480 million more than in 2004)

Summary

  • The condition of Scotland's roads is worsening
  • All roads authorities have a growing road maintenance backlog
  • Expenditure on Scotland's roads maintenance increased between 2004/05 and 2009/10
  • However, due to maintenance industry inflation, by 2009/10:
    - local authorities had 13% less to spend in real terms
    - Transport Scotland had 32% less to spend in real terms.

In 2005, 70% of Scotland's local authority roads were viewed as being in an acceptable condition but, by 2010, this has fallen to 66%.

The current condition on trunk roads is marginally better, but deteriorating faster. In 2006 the percentage of trunk roads in acceptable condition stood at 84% whereas, by 2010 this had fallen to 78%.

Given the present financial climate, and with pressures on all public sector budgets, it is unlikely that significant additional funding will be made available for road maintenance to help address the backlog issue. The recent Christie Commission Report highlights the benefits of longer term strategic planning and early interventions to achieve better outcomes.[8] The principles put forward by Christie are:

  • Reforms must aim to empower individuals and communities receiving public services, by involving them in the design and delivery of the services they use;
  • Public service providers must be required to work much more closely in partnership, to integrate service provision and thus improve the outcomes they achieve;
  • Prioritise expenditure on public services which prevent negative outcomes from arising.

Although the Christie Commission Report covers a wide remit, encompassing the public sector as a whole and a variety of policy subjects, some of its recommendations have a direct relevance to this Review. In particular, Christie recommends, among other things:

  • The preparation of long-term asset management plans;
  • The whole system of public services - public, third and private sectors - must become more efficient by reducing duplication and sharing services wherever possible.

Recent research by SCOTS[9] illustrates the challenge facing local authorities[10]. Even with an annual maintenance spend at 2009/10 levels, the asset is not being maintained at a 'steady state' condition. SCOTS estimated that in 2009/10 an additional £45 million per annum was required to maintain the local authority network at a 2008 'steady state' level. SCOTS reported that lower levels of funding will inevitably lead to an increasing backlog; thereby incrementally increasing the amount of additional funding required each year to maintain the asset at 2008 levels (ie. not reducing the overall backlog).

By not funding an additional £45 million of investment in proactive maintenance over the two years since 2008, the estimated cost of the backlog actually increased by up to £190 million[11]. This illustrates that by investing £1 in proactive maintenance, the resultant saving could be around £2 in future treatment costs.

Without prejudging the outcome of the Scottish Government Spending Review, the sector needs to look at all options, both to stop further deterioration of the asset and also to deal with the backlog. Whilst all roads authorities will seek to expand their efficiency saving initiatives, historically such efforts have delivered between 2%-4% savings. Such levels alone are unlikely to be adequate to deal with the growing problem.

For example, to release an additional £45 million to invest in proactive maintenance, local authorities would need to deliver a 10% efficiency saving. Even then, as highlighted above, such a saving does no more than support 'steady state' maintenance of the local road network at 2008 levels.

Alternatively, the sector could consider modifying the standards that effectively set what is deemed to be steady state. This approach would mean that the backlog is recalculated and the funding required to clear the backlog would be reduced. However road users would not see an improvement in the road condition.

It is likely that a combination of productivity improvements and efficiency savings, changes in standards or levels of service, and additional funding will be required to deal with the backlog .

The cost of dealing with the backlog across the whole of the Scottish roads network was estimated by Audit Scotland to amount to around some £2.25 billion[12]:

£1.54 billion relates to the maintenance backlog on local authority roads (excluding bridges and other assets such as lighting); and,

£0.713 billion relates to trunk roads (including bridges).

Over half of the Scottish road network comprises unclassified roads and the 2010 road condition data in Figure 1 below show that less than 60% of these roads were deemed to be in an acceptable condition, with 10% needing attention within 12 months. These roads are surveyed less frequently than other road types thus reducing the level of certainty on both the condition and cost to repair.

Figure 1

Figure 1

Source: Audit Scotland, 2011

The total backlog is expected to be even larger once local authority bridges and other assets are included. Some 60% of Transport Scotland's reported backlog is due to bridges. Once local authority bridges are included, the total backlog cost will increase to significantly above £2 billion.

Similarly, the backlog costs associated with footways are still being considered as part of the work by local authorities in their asset management plans.

Further future pressures on roads authorities may also arise from complying with the Equalities Act 2010 (Transport Scotland estimates its costs to be £40 million through to 2025), and from the need to ensure the resilience and adaptation of our networks to meet climate change, sustainability and other challenges.

A deteriorating road network adds to business costs, personal travel costs and impedes sustainable economic growth. It also has the potential to reduce environmental amenity and increase health and safety problems. The importance of properly maintained roads and footpaths can be seen from the recent Audit Commission report[13]. This clearly highlights public expectations (in England and Wales) on what is perceived to be key areas for local government service improvements, with roads and pavement repairs being second out of 21 possible service areas (see Figure 2).

Figure 2

Figure 2

Source: Audit Commission, 2011

Table 1 sets out the significant challenge that industry inflation posed to available budgets in the period 2004 to 2010. This challenge will continue alongside the facts that Transport Scotland's overall budget for trunk road maintenance is set to fall by around 20%[14] and the amount of funding made available to local government will fall by nearly 4% and will be subject to competing local priorities.

As with all of Scotland's public services, securing funding to maintain roads at even their 2008 levels of service will require strong, compelling evidence. To help secure funding, the benefits to be delivered will need to be clearly understood and robustly explained and, in all likelihood, will also involve a step change in approach.

1.2 Purpose of the National Roads Maintenance Review

The Audit Scotland report made a number of recommendations that were accepted by the then Minister for Transport and Infrastructure. A central recommendation and the pretext for this report, was for the Scottish Government to take forward a national review of:

  • how the road network is managed and maintained, with a view to stimulating service redesign and increasing the pace of examining the potential for shared services.

In addition, the Minister also advised that the review should:

  • consider and recommend how the Scottish Government can work better with local authorities, and
  • highlight what can be learned from international road management practice.

The focus is to identify how those responsible for, and working in, Scotland's roads maintenance sector can deliver efficiently managed roads for all within the budgets available, and identify opportunities for innovation, collaborative working, and the sharing of services.

The review covers the whole of the road asset including the road carriageway (all the layers that make up a road) and adjoining footways, bridges, verges, signing and lighting. The analysis of options generated via the review will take into account potential impacts on all road users.[15]

There is currently a review of winter maintenance services underway. The recommendations from that study will need to be assessed and, where appropriate, incorporated into this review's final recommendations.

1.3 Approach/ Methodology

In identifying options that would enable effective changes to maintenance delivery, a steering group was established to take forward the review in partnership. The steering group members are representatives from Transport Scotland, COSLA, SOLACE, SCOTS and the Scottish Road Works Commissioner.

The steering group considered the following four key issues:

  • how standards and asset management techniques influence the maintenance of assets including all roads, footways, lighting and structures;
  • what opportunities exist for technology and productivity innovation, and whether there are strategic mechanisms to address potential barriers to innovation;
  • where resourcing of maintenance could be improved, including consideration of current approaches to sharing services and collaboration between authorities; and
  • what wider economic issues, impacts, costs and benefits need to be considered, including the potential for different funding approaches.
    This work stream will consider the appraisal of options generated as a result of the first phase of the review and outputs from the stakeholder event. Consequently, this work stream is not considered further in this report.

Four working groups were established to identify operational changes that would benefit the sector, drawing on supportive, verifiable evidence and outlining what mechanisms may be required to facilitate these changes.

In particular, they assessed the current baseline conditions and highlighted examples of best practice in delivery and innovative approaches, to ensure Scotland's roads maintenance community can rise to the challenges of severe financial pressures, deteriorating road quality, rising road usage and growing road user expectations.

The emerging themes from the first phase of the review, undertaken via the first three work streams, are highlighted in Section 2.

Section 3 outlines the main conclusions and recommendations for further action.

In parallel with this work, the working groups generated options which have subsequently been mapped to the conclusions and recommendations given in Section 3 of this report. These options will be developed and appraised in Phase 2 of this review.

Details of the evidence base for the Standards and Asset Management, Technology & Productivity Innovation and Resourcing work streams are contained in Appendices A-C.

As part of this review, an interim stakeholder event was held on Thursday 23 June 2011 in Edinburgh. Emerging findings of this Phase 1 report were shared with the wider stakeholder community, to ensure the review is shaped and informed by the views of all involved. A summary report of the event and subsequent feedback is contained in Appendix D.