National Roads Maintenance Review - Phase 2 Report
1 Executive Summary
Scotland's road network is the country's largest community capital asset, encompassing all roads, footways, cycleways, bridges, street lighting and road signage. The road network is not only vital in supporting Scotland's economy, it is essential for the long-term sustainability and development of communities and for the well-being of its residents.
The Audit Scotland report[1] made a number of recommendations that were accepted by the then Minister for Transport and Infrastructure. In response, this Review aimed 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 and collaborative working.
A deteriorating road network impacts on sustainable economic growth. It adds to business costs, personal travel costs and has the potential to reduce safety, environmental amenity and social cohesion.
The increasing volume and weight of traffic results in the need for more frequent road maintenance. Moreover, the continued deterioration in the condition of the network has been exacerbated by recent severe winters. Whilst these may not be related to climate change, there is no doubt that its consequences will add to the cost of maintaining our roads. With current budgets, the maintenance backlog will increase. However, given the present financial climate, and pressures on public sector budgets, it is unlikely that significant additional funding can be made available.
Given the severe budget pressures on all public services, both nationally and locally, continuing with the current approach to road maintenance is not sustainable, and change is required. It is therefore essential that we explore all avenues which might mitigate some of the future deterioration on the network.
As part of the Review, an assessment has been made of the economic, social and environmental impacts of further reducing road maintenance spending[2]. This provides compelling evidence of the negative effects such a decision would have on roads users. Just as importantly, accessibility across Scotland's communities will be reduced, safety for pedestrians, cyclists and other road users will be diminished and there would be a detrimental impact on the wider environment.
Savings on road maintenance spend would be significantly outweighed by the wider additional costs. For example, a 40% reduction in roads maintenance budgets over the next 10 years, is estimated to save £2 billion. However these savings are significantly outweighed by likely additional costs to Scotland's road users and communities of at least £3 billion.
A £1 reduction in road maintenance therefore results in a £1.50 cost to the wider Scottish economy and society. The total costs encompass trunk roads and, to an even greater extent, the local road network. They are further reinforced by the non-quantifiable wider impacts on Scottish society and the environment.
Investing in the maintenance of this significant capital asset clearly delivers economic and social benefits to Scotland.
Whilst change is necessary, there remains a choice as to how far and how fast it can be delivered. It is also important to accept, however, that one size does not fit all. There is a diversity of road types, local conditions, priorities and current practices. Different parts of the country or road network may have different start or end points for change.
As part of this Review, working groups of road maintenance experts from across the industry developed options for changing the way the sector operates, drawing on evidence of what has worked elsewhere, locally, nationally and internationally. This work has been overseen and endorsed by a steering group of senior industry figures.
A strategic framework has been developed. This sets out that, to demonstrate efficiency and effectiveness, some or all of the following developments to current working practices will be needed:
1. Robust asset management planning
2. More than one provider or supplier to ensure meaningful comparison
3. Appropriate outcome-focused benchmarks and key performance indicators (KPIs) to illustrate efficient performance
4. Appropriate monitoring to demonstrate transparency
5. Appropriate incentivisation to encourage behavioural change and innovation
6. SMART[3] targets
7. Ability to generate additional continuous improvement to ensure innovation and collaboration are the norm.
Delivering 1-7 above will ensure that the most is being made of declining financial resources, but will only slow down rather than stop the decline caused by lack of investment.
Roads authorities could strengthen their business case to justify initial requests for additional public investment or funding from the private sector by undertaking some or all of enhancements 8-10 below.
8. Increased certainty of even short-term finance
9. Value-driven collaboration to deliver economies of scale eg, resources, funding, management, skills and specialisms, assets and plant
10. Enhanced levels of scrutiny to ensure delivery of outcomes
Thirty options to assist change were assessed by the steering group and considered worthy to be taken forward.
Of these 30 options, 21 are developments which would embed best practice across road maintenance in Scotland, ensuring best value with existing resources and arrangements. They will also help demonstrate the alignment of the sector with the Christie Commission recommendations on preventative spend.
The remaining 9 options address enhancements under the strategic framework. These offer the potential for roads authorities to present stronger arguments for additional public investment, or funding from the private sector.
Following appropriate local and national political approval, it is recommended that each option should be progressed under the direction of the steering group over the next six months.
The Scottish road maintenance community is ready to embrace change to deliver enhanced value. Support and encouragement from stakeholders will be the catalyst for this change.