Highways Agency

Safe roads, Reliable journeys, Informed travellers

HIGHLIGHTS

Improving Safety

A range of major and minor road improvement schemes were completed during the year. These will deliver significant accident savings. Major new schemes that will also reduce congestion and improve journey reliability included the final section of the A12 Hackney to M11 Link Road. This has relieved the residential streets of Wanstead, Woodford and Leytonstone of through traffic and it is estimated the road will prevent 100 accidents a year on local roads. The A30 Honiton to Exeter Improvement is expected to save around 100 lives over the next 30 years. But smaller scale projects also have an important role to play in cutting accidents. Our Toolkit of innovative techniques was enhanced by the successful trial of wet night visibility road markings that are easier to see than conventional markings when the sun is low and at night when roads are wet.  

Making Better Use of Roads

Tackling congestion by making more effective use of existing roads requires innovative solutions. In a trial of the concept, the Agency opened a bus lane on the busy stretch of the M4 motorway linking Heathrow and West London. Dedicated exclusively to coaches, buses and taxis facing congestion heading into London, the scheme was initially controversial, but independent evaluation of the benefits has revealed time savings for all vehicles at peak hours with more savings and improved reliability for bus and coach journeys.  

Protecting the Environment

The Agency's new environmental strategy, set out in `Towards a Balance with Nature', is already helping to deliver improved protection for land, trees, wildlife and rivers alongside England's motorways and all purpose trunk roads. A dramatic example of the strategy in action is the scheme to translocate material from a 400-year old woodland affected by the M2 motorway widening scheme in Kent. Over 10,000 tonnes of ancient woodland soil and more than100 ancient hazel trees have been carefully moved and 60,000 new trees planted.  

Using Technology

The Agency continues to invest in new technological solutions to tackle congestion and provide improved services to road users. The development of our TRACS vehicle capable of undertaking speedier road condition surveys will lessen delays to road users when essential surveys of motorways and all purpose trunk roads are carried out. Better information will be available to road users as the Agency installs new Variable Message Signs, the prototype of which was unveiled last year. The Agency's leading role in evaluating and reprogramming existing traffic and tunnel control systems, the CCTV network, and all the supporting IT systems ensured that safety standards were not compromised as systems switched to the year 2000.  

Pupils being escorted to Highfield Primary School in Leeds.

The M4 bus lane has successfully reduced journey times during peak periods since it opened in June 1999.

An ancient orchard was preserved during widening of the A2/M2.

TRACS is a new high-speed survey vehicle able to identify cracks in road surfaces more effectively.

CHIEF EXECUTIVE'S FOREWORD

This Annual Report sets out how the Highways Agency has performed in meeting the challenging targets set for it in 1999/2000.That the Agency met or exceeded most of its key targets is an immense credit to all the staff who have achieved this, including my predecessors, Lawrie Haynes and, more recently, Peter Nutt.

The past year has been demanding and challenging as the Agency focussed on transforming itself from its former role as a builder and maintainer of England's £62 billion motorway and trunk road network, to the enhanced role of a network operator. The wider objectives set for the Agency to make better use of that network and provide improved levels of service in partnership with others was endorsed by the first Quinquennial Review of the organisation since its launch in 1994.

The Agency's positive response to major changes in transport policy, its innovative approach to operating and maintaining the motorway and trunk road network so vital to economic health, and the efficiency savings delivered over the first five years, satisfied the Government that the continued existence of the Highways Agency remained the most effective way of delivering better services to our customers.

In 1999/2000, considerable effort went into reshaping the Agency to deliver the challenging agenda set out in the Government's Integrated Transport White Paper and the ambitious long-term strategy now reflected in the 10 Year Plan, "Transport 2010". ThAgency's structure was reorganised to match regional planning boundaries more closely and advance planning enabled work on London roads and over a hundred staff to transfer smoothly to the new Greater London Authority when it was established in July 2000.The future will be equally challenging for us as, using modern technology, innovative approaches and partnerships with other operators, we implement the 10 Year Plan to tackle congestion.

In the next two years we will introduce a national Traffic Control Centre which will transmit up-to-date advice on which route to use if there are existing problems on the network.

Over the next 10 years we will make better use of the existing network by the increasing use of new technology to improve the real time management of traffic on our motorway and trunk road network. New systems will provide more reliable journey times, improve the safety and operation of the network, reducing its environmental impact and providing better integration with other forms of transport, and control traffic flows. Our `electronic motorways' will include extensive new roadside monitoring and communications equipment, linked to variable message signs and ultimately to in-car computers, providing both network controllers and drivers with real-time information about traffic levels, road conditions and incidents. These will be significant steps towards the `smart' roads of the future.

I am pleased to be joining such a dedicated, forward thinking team of people whose successful record demonstrates their ability to rise to the challenges ahead.

Tim Matthews, Chief Executive

Highways Agency Board

MODERNISATION

Carol Moore

Customer Service Operator Carol Moore from the Highways Agency Information Line - 08457 50 40 30. HAIL provides up-to-date information to help with journey planning, including details of roadworks affecting motorways and major roads. HAIL handled 67,501 calls during 1999. This information is also available on this website

OUR ORGANISATION:THE HIGHWAYS AGENCY MAINTAINS, OPERATES AND IMPROVES THE 6,350 MILE NETWORK OF ALL PURPOSE TRUNK ROADS AND MOTORWAYS IN ENGLAND ON BEHALF OF THE SECRETARY OF STATE FOR THE ENVIRONMENT, TRANSPORT AND THE REGIONS.

Bathampton Meadow Nature Reserve was created as an integral part of the A4 Batheaston Bypass.

Links between Highways Agencies Strategies

THE AGENCY WORKS CLOSELY WITH LOCAL AUTHORITIES, AND RAIL, COACH, BUS,WATER AND AIR OPERATORS TO INTEGRATE THE NETWORK WITH NON TRUNK ROADS AND OTHER MODES OF TRANSPORT.

Although the motorway and trunk road network is relatively small, accounting for less than four per cent of England's roads, it plays a key role in the country's transport system, carrying over a third of all traffic and more than two thirds of freight. It is a valuable national asset, currently worth about £62 billion. 

Our Aim

The Agency's strategic aim is:
To contribute to sustainable development by maintaining, operating and improving the motorway and trunk road network in support of the Government's integrated transport and land use planning policies. 

Our Objectives

• Ministers have also set the Agency eight key objectives:
• To give priority to the maintenance of trunk roads and bridges with the broad objective of minimising whole life costs.
• To develop its role as a network operator by implementing traffic management, network communications and other measures aimed at making best use of the existing infrastructure and facilitating integration with other transport modes.
• To take action to reduce congestion and increase the reliability of journey times.
• To carry out the Government's targeted programme of investment in trunk road improvements.
• To minimise the impact of the trunk road network on both the natural and built environment.
• To improve safety for all road users and contribute to the Government's new safety strategy and targets for 2010.
• To work in partnership with road users, transport providers and operators, local authorities and others affected by its operations.
• To promote choice and information for travellers, monitoring and publishing information about the performance and reliability of the network.
• To be a good employer, managing the Agency's business efficiently and effectively, seeking continuous business improvement. 

Streamlining the Agency

All Government agencies are subject to review every five years and the first such review of the Highways Agency since its launch in 1994 was completed in July 1999.The review evaluated the Agency's performance over the period and considered whether Agency status remained appropriate. On the Agency's performance the review concluded that it had been largely successful in meeting the targets it was set, had improved its procurement of maintenance and major schemes and cut its running costs substantially. It had also responded quickly and positively to major changes in policy. In particular, the Agency had shifted its focus from being a road builder to encompass its additional role as a network operator.

On institutional arrangements the review concluded that the most effective way of delivering a more integrated transport system and a better service to road users was to build on the achievements of the Highways Agency. The Highways Agency therefore retained its status as an Executive Agency of the Department of the Environment,Transport and the Regions, providing us with a stable basis for developing our network operator role.

To fulfil that role more effectively the operational side of the organisation was reshaped into four regions - South-west, South-east, North and Midlands - to match regional planning and Government Office boundaries more closely. This is strengthening the partnerships with planning bodies, including the Regional Development Agencies, to deliver customer-focussed integrated transport solutions. This enables our Network and Customer Service teams to concentrate on developing relationships with these and other partners, while Project Service teams focus on the delivery of work programmes.

This reshaping of the organisation also had to take account of the new Greater London Authority which assumed responsibility for London's roads in July 2000. Advance planning enabled work on London's motorway and trunk road network and over a hundred staff to be successfully transferred to the Capital's new transport body, Transport for London. 

Strategies for Action

To deliver our network operator role we are developing a series of Strategic Plans to explain what we will be doing in the next five to ten years to promote the Government's policies for sustainable development and to guide us in providing integrated transport solutions. They will encourage innovation, ensure a consistent approach, help spread best practice, and will be taken forward as we develop more detailed Route Management Strategies for individual routes. This family of plans will cover each of the investment areas and investment criteria set out in the Integrated Transport White Paper.

Our first strategic plan covering the environment, "Towards a Balance with Nature", was published in November 1999. The second covering Safety, Making the Network Safer, was published in March 2000, and has been followed by the plan for Maintenance in April 2000.

MAINTENANCE

Les Hawker

Les Hawker is Group Manager of the Pavement Engineering team which actively supports the development of the Agency's road maintenance programme.

GIVE PRIORITY TO THE MAINTENANCE OF MOTORWAYS, TRUNK ROADS AND BRIDGES WITH THE BROAD OBJECTIVE OF MINIMISING WHOLE LIFE COSTS.

Contractors carrying out drain
cleaning during routine night
maintenance on an elevated section
of the M4.

Night work on a
bridge joint on the M4.

 TRACS vehicle surveying a
 motorway
 to detect cracks in the road
 surface.

 

THE GOVERNMENT HAS MADE MAINTENANCE OF THE MOTORWAY AND TRUNK ROAD NETWORK OUR TOP PRIORITY AND OVER HALF OF OUR 1999/2000 NET VOTED ALLOCATION OF £1396M (£726M) WENT ON MAINTAINING THE NETWORK IN A SAFE AND SERVICEABLE CONDITION.

With increased funding and a confirmed three-year budget allocation the Agency can look forward to more efficient, long-term partnerships with which to deliver road maintenance.

The Agency achieved all its maintenance targets in 1999/2000 and significantly exceeded the targets for delivering bridge maintenance schemes and road surface renewal, all within available funds.

Maintenance includes a wide range of activities, from major reconstruction and resurfacing of road pavements and repairing bridges, to the everyday upkeep such as clearing litter, servicing emergency telephones, cleaning road signs and salting roads before ice and snow are expected. The guiding principle is that the right maintenance at the right time will deliver a better service to our customers and be more cost-effective. We continue to develop better whole-life cost methods to minimise expenditure over time and reduce disruption to road users.

Wherever possible we carry out maintenance outside peak hours, often in the early hours of the morning. Care is taken to avoid carrying out works during events such as the solar eclipse in the South-west in August 1999, and work is halted during bank holidays if at all possible.

As part of the £3m maintenance project on the M62 near Warrington, overhead gantries were dismantled and removed from the site to be repaired and repainted away from the motorway. This alternative to maintaining the gantries in position proved to be a very cost-effective way of carrying out this vital work while minimising the disruption to users of this busy motorway.

The search for solutions that provide the best value for taxpayers resulted in savings of more than £2 million per year being negotiated for the supply of electricity to light the motorway and trunk road network. The deal with Eastern Electricity is the largest-ever supply contract for un-metered electricity in England. The annual cost of £9.4m for the new deal reduces our electricity costs by 21 per cent, with those savings being used to provide better services elsewhere on the network.

Central to the drive for innovative network management that minimises the impact on users' use of new technology. The Agency awarded a £1m contract to supply a high-speed survey vehicle, able to identify cracks in road surfaces more quickly and cheaply. The TRACS vehicle (Traffic-speed Condition Surveys) can operate at up to 70mph and uses 20 sensors to record the condition of roads. TRACS removes the need to close lanes for essential maintenance inspections and the delays to users that this causes, and is safer for road users and for the staff of the Agency and its contractors.

The Agency consulted widely with the construction industry, local authorities and others about its plans to streamline maintenance procedures and set benchmarks for the performance of contracts. Four options were presented to build on the current two-tier system, involving managing agents and term maintenance contractors, which although successful are still capable of further improvement. 

Case Study

Drivers benefited from the innovative engineering solution adopted for strengthening the A40 bridges over the M5 motorway at the Golden Valley Interchange near Cheltenham.

The simplest option of demolishing the central A40 bridge over the M5 and rebuilding it would have caused widespread disruption to users of both the A40 and M5. Instead, the solution adopted involved strengthening the piers supporting the two bridges over the Golden Valley interchange roundabout and replacing the eight supporting piers under the main bridge with 12 V-shaped columns while traffic continued to use both the A40 above and the M5 below.

The scheme involved lifting the 5,000 tonne central bridge over seven inches in order to install new bearings; re-waterproofing the bridges; laying a new, lightweight road surface; and putting up new safety fencing. The traffic management alone required the use of more than 7,000 traffic cones, 280 road signs and 6,000 temporary road studs. There were lane restrictions and contra-flows with occasional night-time closures, but disruption was far less than if the bridges had been replaced and the project was completed at half the cost to the taxpayer.

A dedicated website was also set-up to keep road users informed and to enable engineers and academics to study progress with the scheme. Heavy goods vehicles can now use the bridges for the first time in over four years.

NETWORK

DEVELOPING AND IMPLEMENTING MEASURES AIMED AT MAKING BETTER USE OF THE MOTORWAY AND TRUNK ROAD NETWORK AND INTEGRATION WITH OTHER MODES

CCTV images relayed to the Traffic Control Centre in Chigwell, Essex.    

 

 

 

                           

An operator at the Traffic Control Centre in Chigwell, Essex.

 

 

 

 

The M4 bus lane has been successful in reducing journey times for all vehicles during peak periods.

 

 

 

 

THE HIGHWAYS AGENCY IS COMMITTED TO DEVELOPING AND IMPLEMENTING MEASURES AIMED AT MAKING BETTER USE OF THE MOTORWAY AND TRUNK ROAD NETWORK AND IMPROVING INTEGRATION WITH OTHER TRANSPORT NETWORKS AS PART OF ITS NETWORK OPERATOR ROLE.

The £187 million programme in 1999/2000 encompassed a range of projects, covering network communications, smaller-scale roadworks delivering local improvements - particularly safety improvements - and a programme of research and development.

The Agency achieved the key targets for delivering smaller scale schemes and for progressing the Traffic Control Centre. The Agency invited tenders for this project which will have a major impact on the way trunk roads are managed and play a vital part in the Agency's strategy for improving driver information services and traffic management across the network.

The Traffic Control Centre project will build on and link existing local systems. One such system is the new electronic motorway message system called TARDIS (Thelwell Area Driver Information System) installed in Cheshire. The preparatory work for TARDIS is complete. It will become fully functional in spring 2001 to give up-to-the-minute traffic information on the M6, M62 and M56 motorways around Warrington. It will also give information on alternative routes to ease congestion on this busy part of the network. Another local system is the new £5m traffic surveillance project enabling Bedfordshire Police to monitor 24 miles of the M1 motorway in Bedfordshire and Buckinghamshire. Closed Circuit Television (CCTV) cameras have been placed at strategic positions along the route between Junctions 10 and 14, allowing the police to monitor hold-ups and congestion, pin-pointing problems immediately to improve responses to incidents.

We also launched a revised Toolkit of measures to help deliver the Government's policy on motorways and other trunk roads. It includes technological innovations to reduce congestion, protect the environment and improve safety for all road users.

The first-ever bus lane on a motorway in England was opened in June 1999, dedicated exclusively to coaches, buses and taxis along a busy stretch of the M4 heading into London from Heathrow Airport. The scheme helps encourage the use of public transport for journeys between the airport and Central London by removing a bottleneck for all vehicles at a point where the M4 narrows from three lanes to two, frequently causing long queues. Independent monitoring by the Transport Research Laboratory showed that during the morning rush-hour, time savings for buses and taxis averaged three and a half minutes. But there have been benefits for all users at peak hours with other vehicles saving on average one minute during the evening rush hour and on Sunday evenings.

Other pilot projects have been carried out to show that where there is a viable rail alternative to the car, a concerted, well-conducted campaign can change travel habits. Building on the first trial in Essex to reduce congestion on the busy A12 into London by promoting improved rail services from Chelmsford, two other road-to-rail campaigns have been successful in Norfolk and Newcastle. Encouraging travellers to make more use of local train services is helping to ease peak-time congestion on busy roads.

The pioneering Travelwise centre in Nottingham - co-funded by the Agency - has also proved a notable success since it was opened. Travelwise is the first venture of its kind in Europe and is run by the Agency in partnership with the county and city councils and BBC Radio Nottingham. CCTV pictures of congestion are carried on the website which is supported by a telephone hotline and up to 31 bulletins a day on Radio Nottingham. The bulletins provide information about conditions on local roads and trunk roads, in car parks and park and ride sites, and the availability of bus and rail services. In its first three months the centre received more than 3,000 phone calls and 20,000 visits to its website. 

Case Study

Special events require special solutions. 1999/2000 saw two "once in a lifetime" events that occupied the minds of Highways Agency staff - the solar eclipse and the dawn of the new Millennium.

Severe congestion was threatened by the possibility of more than a million visitors seeking to drive to South-west England to view the total solar eclipse on 11 August 1999. Working in partnership with local authorities, the police and others, potential chaos was avoided as the Highways Agency and its partners implemented a Strategic Traffic Management Plan for the event. Included in the plan were measures to maximise network capacity, provide real time travel information, contingency plans for traffic management and a media campaign. The Agency's advice - don't travel on the day, come early, stay late and use public transport if you can - was followed by thousands of eclipse seekers who took advice to travel at off-peak times. The campaign helped achieve a big swing to off-peak travel into the South West in the five days leading to the eclipse. Other measures, including the rescheduling of maintenance and the acceleration of work to complete improvements to the A30 between Honiton and Exeter ahead of schedule, ensured that delays were kept to a minimum.

Modern road travel is dependent on a supporting network of computer systems that help control equipment such as lighting and traffic lights, motorway warning and variable message signs, emergency telephones and cameras, and tunnel ventilation systems. Millennium Bug problems with any one of these systems could have resulted in severe disruption to users of the motorway and trunk road network and, more importantly, compromised the safety of the network and its users. A carefully planned £7.5 million programme of checking, reprogramming and testing all the Agency's computer systems ensured that they all worked faultlessly on 1 January 2000 and that safety standards were not compromised.

SAFETY

IMPROVING SAFETY FOR ALL ROAD USERS AND CONTRIBUTING TO THE GOVERNMENT'S NEW SAFETY STRATEGY AND TARGETS FOR 2010.

These solar powered road studs on the A449 in Worcestershire were the first self-illuminating road studs installed on a British trunk road.

 

Cycle lane on A12 between Gorleston-on-Sea and Hopton-on-Sea near Lowestoft.

THE ENGLISH MOTORWAY AND TRUNK ROAD NETWORK IS THE SAFEST NETWORK IN EUROPE.

In 1999 against a background of a 4% increase in the volume of traffic on the network there has been a 1% reduction in the overall number of accidents. Unfortunately, this reduction in accident numbers is offset by an increase in the number of casualties including fatalities. There were over 39,000 casualties, of those casualties 4714 were seriously injured and 702 people died.

The Agency spelt out its commitment in a new strategic plan for safety, "Making the Network Safer", published in March 2000.This reflects the 10 Year Plan targets of reducing by a third the number of fatalities and serious casualties, and reducing the slight casualty rate by ten per cent.

Major road improvements, even those focused on delivering economic objectives such as regeneration and supporting prosperity, deliver significant accident savings by providing safer and healthier communities. For example, the new dual carriageway improvement of the A30 between Honiton and Exeter is expected to save around 100 lives over 30 years as well as improving life in the communities previously severed by heavy traffic.

Quality and timely maintenance also has a key role to play by ensuring that the skid resistance of road surfaces is maintained and that road markings are clear. Also vitally important are smaller scale safety schemes aimed at resolving local safety issues quickly and these remain a high priority in our programme of Local Network Management Schemes.

Such schemes may involve conventional engineering solutions, but new techniques and solutions are being developed all the time and added to the Agency's revised Toolkit of ideas to enhance network operation and safety.

Trials of solar powered road studs have taken place from which results show improvements to the visibility of road markings at night and in rain or fog. New innovations tested last year include wet night visibility road markings that break the mirror like film caused by rain which makes conventional markings difficult to see. They are also easier to see than conventional markings when the sun is at a low angle.

The continuing search for innovative ways of improving the safety of our network and the safety of those who travel, and work on it is underpinned by the Agency's Research and Development programme. For example, research into accidents on motorway hard shoulders has improved our understanding of the hazards facing drivers, vehicle recovery operators, police and maintenance workers that will feed into the development of new working practices. Similarly, research found that wetted salt was more effective than dry salt in the prevention of ice, resulting in new operational guidelines.

Case Study

In the interest of road safety the Agency has distributed reflective teddy bears for children to wear.

Improving the safety of the motorway and trunk road network cannot be achieved by the Agency alone. It requires a partnership of all those with a shared goal of reducing the toll of accidents on the road network, including the Department of the Environment,Transport and the Regions, police forces, local authorities, motoring organisations, and other interest groups.

A network of Safer Routes to Schools was developed by the Agency in Bedfordshire after consultation with parents, teachers, residents and more than 2000 children. The scheme, a joint pilot project between the Agency and Bedfordshire County Council, aims to make it safer for children to walk and cycle to school. Options put forward at public exhibitions included improved crossing facilities, cycle tracks, a better and more consistent signing and marking system, coloured surfacing, and protective railings and bollards. We are now working with our partners to carry out all the necessary improvements within three years.

ENVIRONMENT

MINIMISING THE IMPACT OF THE MOTORWAY AND TRUNK ROAD NETWORK ON BOTH THE NATURAL AND BUILT ENVIRONMENT.

BALANCING THE NEEDS OF ROAD USERS WITH THE NEED FOR AN ENVIRONMENTALLY SUSTAINABLE MOTORWAY AND TRUNK ROAD NETWORK CONTINUES TO BE A TOP PRIORITY FOR THE AGENCY IN PLANNING MAINTENANCE AND IMPROVEMENT OF THE NETWORK. THIS IS REFLECTED IN OUR NEW ENVIRONMENTAL STRATEGY, TOWARDS A BALANCE WITH NATURE, PUBLISHED IN NOVEMBER 1999.

This strategy sets out new techniques to minimise our impact on the environment while delivering a better service for road users. It covers air pollution, waste management, noise reduction, water pollution, bio-diversity and heritage protection.

Our commitment to reducing and controlling the impact of the network on the environment is reflected in many aspects of our work - none more so than in a £1.5 million project to relocate a 400-year old woodland alongside the route of the M2 widening scheme in Kent. Over 10,000 tonnes of ancient woodland soil was moved to new locations and more than 100 ancient hazel trees were dug up carefully and replanted at the new site. 60,000 additional trees grown from local seed have been planted to link with other fragments of the ancient woodland and allow woodland animals and plants to colonise the area.

Environmental work has continued to improve the quality of life for urban communities. The A12 Hackney to M11 Link Road has relieved the residential streets of Wanstead, Woodford and Leytonstone of through traffic and it is estimated the road will prevent 100 accidents a year on local roads. Much of the route runs in a cutting and noise reducing walls were used to lessen the effect on the local community. The structures have been given attractive finishes designed to integrate with the built environment, and new landscaping with trees and shrubs has been provided. A small park has been laid out, a new bus and rail interchange provided, and separate provisions made for pedestrians, cyclists and horse riders.

Similarly, great care was taken during construction of seven miles of the new A13 in East London to minimise the impact on the urban and rural environment. The Agency worked with English Nature to relocate plants and insects in watercourses in Rainham Marshes, including the successful relocation of the rare emerald damsel fly.

The Agency has also reviewed its own internal activities to consider whether better environmental solutions and processes should be adopted. In September 1999 we published our own Green Policy Statement and Action Plan which set out the targets we needed to achieve to reduce waste and our use of energy, paper and water as well as looking at our procurement and travel. The Agency also appointed representatives in all its offices to support the work of promoting recycling and to monitor paper, water and energy consumption.

The Agency has continued to work towards more sustainable procurement in maintenance, operation and improvement of the network by contributing to a Sustainability Action Plan within the Government Construction Clients' Panel. We will continue to feed into this work by reviewing our core business and setting targets for more sustainable construction in the procurement and management of the network.

The Agency has continued to develop its Green Travel Plan launched in April 1999 by encouraging staff to develop and adopt local travel plans. Green travel road-shows at our offices have raised awareness levels about travel habits and local co-ordinators have helped form bicycle and public transport user groups. We have already seen an increase in staff using public transport, and walking and cycling journeys are also showing a small but steady increase.

Case Study

A Roman horseshoe, which would have been tied to the horse's foot, found near the A417 between Gloucester and Cirencester.

As a major sponsor of archaeological investigations the Agency is committed to heritage protection. When road improvements are carried out, the Agency commissions archaeologists to carry out detailed assessments of each site. Precise records are kept, ensuring that the data is preserved for posterity. Ancient jewellery from the West Country and a 1940's prisoner of war camp in Lancashire are just some of the finds that the Agency has uncovered and preserved in the past three years.

Wessex Archaeology excavated 13 areas along the route of the A35 in Dorset. Finds included a Middle Bronze Age settlement and an ancient cemetery, dating from the end of the Roman occupation (fifth century) to the seventh century one of very few such sites discovered in Dorset. During work on the A13 in East London significant archaeological finds were discovered such as the bones of a jungle cat, never before found in the British Isles, and a those of the aurochs (giant ox) which are now on public view in the Natural History Museum.

The heritage finds are chronicled in a Highways Agency booklet, "Roads to the Past".

IMPROVEMENT

CARRYING OUT THE GOVERNMENT'S TARGETED PROGRAMME OF INVESTMENT IN MOTORWAY AND TRUNK ROAD IMPROVEMENTS.

The new A12 Hackney to M11 Link Road provides an important link between east London and the M11, helping regeneration of the Docklands.

 

THIS PROGRAMME OF NEW CONSTRUCTION AND UPGRADING OF EXISTING ROADS IS AIMED AT ADDRESSING SOME OF THE MOST PRESSING INFRASTRUCTURE PROBLEMS,TO PROVIDE SAFER AND HEALTHIER COMMUNITIES, REGENERATION AND INTEGRATION, AND IN SUPPORT OF JOBS AND PROSPERITY. IT ALSO INCLUDES AN ENVIRONMENTAL SCHEME TO REMOVE TRAFFIC NOISE AND POLLUTION AWAY FROM STONEHENGE.

The 1999/2000 budget, covering the preparation and delivery of the major improvement schemes in the Government's Targeted Programme of Improvements totalled £454 million, including £194 million for schemes delivered through public-private partnerships (PPP).

The Agency achieved the 1999/2000 key targets in this area by slightly exceeding the target of meeting 85% of the specified scheme milestones, and by reducing its portfolio of residential properties and the proportion of properties left vacant. The percentage of vacant residential properties in the Lands portfolio was 17.0% (against a target of 18%) and the percentage of habitable properties vacant for more than 6 months was 2.6% against a target of 3%.There is a conflict between meeting the vacancy targets, which require us to keep properties tenanted, and meeting the requirement to sell surplus properties as soon as possible, which normally require us to obtain vacant possession. For this reason we have devised new Business Plan targets (in addition to DETR / Ministerial targets) which will consider the property portfolio at 1 April 2000.

During the year, six new road improvements opened bringing economic and environmental benefits to local people. As part of improving the A13 to become a high quality strategic link between East London and the M25 motorway, a seven-mile length of new dual three-lane road was completed. The new road, together with the remainder of the improvements along the route to be delivered under an innovative new form of Design, Build, Finance and Operate (DBFO) private finance contract, will improve journey time reliability for road users and local businesses, supporting regeneration in the Thames Gateway and ensuring a safer and quieter environment for local people. The completion of the final section of the A12 Hackney to M11 Link Road also provided an important link between Docklands and the M11.

The construction phase of another of the Agency's DBFO contracts was completed ahead of schedule with the opening of a new dual carriageway link between A30 Honiton and Exeter. Also opening ahead of schedule was Junction 24A on the M1, linking the motorway to the A50 Stoke-Derby Link Road. The scheme has delivered significant improvements in journey times and reliability for east/west traffic, and reduced congestion. But, while the scheme is vitally important for strategic traffic, the needs of other users were taken fully into account and a separate bridge provided for horse riders, cyclists, pedestrians and farm traffic.

As with other Agency programmes, providing the best solutions to transport needs requires working in partnership with others; local authorities, other transport providers and operators, and the private sector. One example is the £124 million widening of the M2 motorway in Kent which will reduce congestion and improve road safety along a key strategic route to the Channel ports and boost the economy in areas that have traditionally suffered from high levels of unemployment. It is also the largest and most complicated contract in the current construction programme. Much of the route runs parallel to the Channel Tunnel Rail Link and in two places the schemes overlap. Their programmes are being co-ordinated to minimise disruption in the areas through which they pass and to ensure they are completed in the same time period.

Another partnership, between the Highways Agency and the BAA plc, involves joint funding of new slip roads from the M11 motorway in Essex into Stansted Airport to help the flow of traffic going to and from this growing airport. Although the full programme of work will not be completed until 2003, road users are already benefiting from the provision of more traffic lanes at Junction 8, a new link across the junction for traffic accessing the southbound M11, and additional traffic signals. 

The Government's Targeted Programme of Improvements includes a scheme to remove traffic congestion, noise and pollution at Stonehenge. The scheme involves placing a section of the A303 in a dual carriageway cut-and-cover tunnel.

Widening of the A2/M2 between London and the Kent coast will reduce congestion and aid economic regeneration.

Case Study

The Highways Agency views partnering as a key element in developing successful integrated transport projects. This commitment was demonstrated with the signing of a unique partnering agreement between the Agency and Stoke-on- Trent City Council to deliver junction improvements on the A500 in the city.

The partnership is designed to ensure that work to improve the trunk road coincides with Stoke City Council's own transport plans of delivering more efficient bus services and safer movements for cyclists. These integrated improvements are expected to help lead the regeneration of derelict sites along the A500.

Additionally, for the first time we will appoint a contractor before the design of the junction improvements is finalised to enable them to use their specialist skills to introduce better value engineering solutions. The involvement of the contractor earlier in the process will also enable work to start sooner.

EFFICIENCY

FORWARD THINKING AND INNOVATIVE SOLUTIONS ON THE MOTORWAY AND TRUNK ROAD NETWORK ARE ESSENTIAL TO PROVIDE THE BEST POSSIBLE SERVICES TO ROAD USERS.

Installing safety fences near Scratchwood services on the M1, junction 2.

The new aim and objectives for the Agency, reinforced by the long-term goals in "Transport 2010:The 10 Year Plan", are already increasing the focus of the Agency on outcomes rather than outputs. This has given added impetus to the delivery of high quality services that are efficient and responsive to the needs of citizens in line with the Modernising Government agenda.

The M1/A1 link, Leeds - one of our recent DBFO successes.

Major changes in transport policy over the first five years of the Agency's existence have led to the Agency's role being redefined over that time. It is to the considerable credit of our skilled and able staff that they have responded so well in delivering the enormous changes required of us. However, we know that we still have a great deal to do, that improvement is a continuous process, and that we need to apply the same innovative thinking to improving our internal processes as is applied on the motorway and trunk road network.

The majority of the targets set in 1999/2000 were achieved, including publishing a Green Policy statement and Action Plan, and meeting most of the Road User Charter obligations and Whitehall Standards. However, the Agency did fail to achieve two key targets. The Accounts were qualified and we therefore failed to achieve the target of publishing audited accounts in the Treasury Resource Accounting and Budgeting format. We are aiming now to publish on 21 March 2001. The Agency also failed to achieve Investors in People (I IP) accreditation although the assessment recognised the significant progress made towards achieving the standard.

We remain committed to achieving IIP accreditation in 2000 and have taken further steps to support our staff and provide them with the new skills and resources they need to deliver our changing business. The Agency's development and training team was strengthened during 1999/2000 by the appointment of local training advisers in each office. The Agency's central training programme was overhauled and updated and a range of new courses offered. These changes contributed to the Agency gaining I IP accreditation in October 2000.

During 1999/2000 other changes were introduced to enable the Agency to fulfil its network operator role more effectively and to prepare the organisation for the future. We strengthened the relationships with planning bodies by re-aligning the Agency's operational boundaries to match those of the Government Offices and regional planning bodies. This enables the Agency's Network and Customer Service teams to concentrate on developing relationships with these and other partners, while our Project Services teams focus on the delivery of programmes and schemes.

Key Ministerial Target tables

TARGETS, OUTTURNS & ACHIEVEMENTS
THROUGHPUT		2000/2001	1999/2000	1998/1999	1997/1998
To end the year with between x% and y% of the network requiring maintenance within the next year. (Business Plan 2000/01, Annex 7)	Target Outturn	7.0% to 8.0%		-	-
To ensure that the percentage of the trunk road network having a zero residual life at the end of the financial year 1999/2000 is less than the figure published in the 1998 report of the National Road Maintenance Condition Survey. (Business Plan 1999/2000, Maintenance, Target 1, p.27)	Target Outturn	Discontinued - replaced by target above Footnote1	<7.26 6.1(A)	-	-
To complete x lane kilometres of surface renewal, including reconstruction, overlays, resurfacing, inlays and surface dressing (Business Plan 1999/2000, Maintenance, Target 2, p.27)	Target Outturn	Discontinued - replaced by outcome target above	1750 2570 (A)	2100 2389	1400 1978
To complete 100 bridge maintenance schemes each costing over £200k (Business Plan 1999/2000, Maintenance, Target 5, p.27)	Target Outturn	Discontinued - structures maintenance now monitored at working level	100 135 (A)	-	-
To achieve a saving of x estimated vehicle hours from the network communications and economy local network management schemes (LNMSs) completed in the year. (Business Plan 2000/01, Annex 7)	Target Outtum	250,000	-	-	-
To complete x road schemes costing between £100k and £3m aimed at improving road safety, contributing to an efficient economy and improving conditions for pedestrians, cyclists and equestrians (together with reducing community severance). These schemes are also aimed at reducing the adverse impacts of motorways and trunk roads on the environment and facilitating integration with other forms of transport, promoting choice and information for travellers. (Business 1999/2000 March, Making Better Use, Target 7, p.27)	Target Outturn	Discontinued - replaced by outcome targets above and below	100 104 (A)	-	-

(A) denotes target achieved

 

TARGETS, OUTTURNS & ACHIEVEMENTS
THROUGHPUT		2000/2001	1999/2000	1998/1999	1997/1998
To complete x network control projects	Target Outturn	Discontinued - replaced by outcome target above	Discontinued	25 25	N/A
To complete 20 local network management schemes (each costing less than £3m) aimed at improving journey time reliability and/or reducing the impact of roads on the environment.	Target Outturn	Discontinued - replaced by outcome target above	Discontinued	20 102	-
To improve safety for all road users and contribute to the Government's new safety strategy and targets for 2010, set out in "Making the Network Safer: the Highways Agency's Strategic Plan for Safety" published on 1 March 2000:
• reduce the number of people killed and seriously injured on trunk roads in the current year to x (compared with the 1994- 98 average of 5589)	Target Outturn	5056	-	-	-
• reduce the slight casualty rate in the current year to y slight casualties per hundred million vehicle km (compared with the 1994-98 average of 21.76)	Target Outturn	21.13	-	-	-
In each case to allow for expected year to year fluctuations in casualty levels, the Agency will be deemed to have met the target if the result is no more than 5% above the milestone target figure. (Business Plan 2000/01, Annex 7)
To contribute to Government's target of reducing road casualties by one third (compared to average for 1981-1985) by ensuring accident rates on the motorway and all purpose trunk road network do not exceed x accidents involving personal injury for every 100 million vehicle kilometres travelled. (Business Plan 1999/2000, Making Better Use, Target 8, p.27)	Target Outturn	Discontinued - replaced by target above	20 18 (A) Footnote2	21 18.6	21 19.2

 

TARGETS, OUTTURNS & ACHIEVEMENTS
THROUGHPUT		2000/2001	1999/2000	1998/1999	1997/1998
Complete x safety schemes Note: definition of safety schemes changed from year to year, so performance not directly comparable)	Target Outturn	Discontinued - replaced by outcome target above	Discontinued - included in combined Target above, listed under "Congestion"	200 377	180 264
Achieve an average annual target of x% across the four environment programme sub-indicators. (Noise, Air Quality. Biodiversity, Landscape) (Business Plan 2000/01, Annex 7)	Target Outturn	85%	-	-	-
To achieve by the end of the year no less than x% of the TPI scheme milestones listed in the Business Plan. 2000/01 Annex, 4 (1999/2000 Annex B, Target 10, p.28)	Target Outturn	90%	85% 87% (A)	80% 91%	80% 94%
- % of vacant residential properties at the end of year does not exceed x% of residential portfolio; and the	Target Outturn	15%	18% 17% (A)	<18% 25%	-
- % of vacant habitable properties empty for > 6 months does not exceed y%. (Annex 4) Business Plan 2000/01.	Target Outturn	3%	3% 2.6% (A)	<7% 4.5%	-
(Business Plan 1999/2000,TPI, Target 11, p.28)		Footnote3
FINANCIAL PERFORMANCE
The Agency will manage its programme and	Target Outturn	Discontinued: now monitored at working level	95- 100% 99.7% (A)	92.5-100% 99.6%	-
running costs within the agreed financial allocation	Target Outturn		95-100% 99.6% (A)	90-100% 99.5%	-
(Business Plan 1999/2000. Continuous Business Improvements, Targets 15, 15.1-15.2, Annex B, p.28)
Achieve x of the efficiency/ effectiveness performance measure targets set for the main areas of our programme (Business Plan 1999/2000. Continuous Business Improvements, Target 17 - 17.9, Annex B p.29)	Target Outturn	Discontinued - Efficiency and effectiveness now monitored at working level	8 out of 9 8 out of 9 (A)	80% 60%	- -

 

Footnote1 continues PSA target "to keep a safe, well maintained network available for use."  

Footnote2 direct comparison of accident figures between this and previous years is less meaningful because the 1999 figures are based on a new trunk road assignment method.  

Footnote3 targets for 2000/01 exclude London properties which have transferred to Transport for London. (TfL)

(A) denotes target achieved

PERFORMANCE AGAINST MILESTONE TARGETS 1999/2000

Maintenance

1. To develop jointly with DETR indices of the condition of road pavements suitable for publication by 31 March 2000. Achieved.

2. To ensure that there is no material disruption on the network as a result of the Millennium Bug by:

• Carrying out risk assessment on all known Agency control systems, road-side equipment and facilities by the end of June 1999; and
• Having Agency-wide business continuity plans and contingency plans in place

Achieved : Both targets achieved to timetable.

3. To ensure that major roadworks on existing roads are:-

• No more than 2.5 miles (4km) long; ( 95%) and
• At least 6 miles (9.6km) apart (97.5%) except in urban areas (defined as areas where the speed limit is 30mph or less), emergencies, and otherwise agreed with DETR. Achieved.

Making Better Use of the Existing Network

1. Progress the Traffic Control Centre Public-Private Partnership to the point of inviting best and final offers by 31 March 2000. Achieved.

Continuous Business Improvements

1. To develop and introduce jointly with DETR a revised set of efficiency targets and indicators by 31 March 2000. Achieved

2. To publish a policy statement and action plan by 30 September 1999 on how the Agency will take forward the Government's policy on Greening Government Operations. Achieved: Published 30 September 1999.

3. To attain Investors in People status by 31 December 1999: Not achieved.Although the I1P assessors in December 1999 reported a massive shift forward in the number of indicators met or partially met the Agency still needed to take forward action in some areas to fully meet the standard. (I IP accreditation was achieved in October 2000.)

4. To meet all agreed key milestones for the successful introduction of Resource Accounting and Budgeting listed below:

• Publication of audited Agency accounts in approved HM Treasury-RAB format; and
• Satisfaction of DETR needs for Government Trigger Points 2 and 3. Not achieved.The Agency account was qualified in two major areas.

Citizen's Charter Targets:

5. To fulfil the obligations of the Road Users Charter. Not achieved. Although we failed to reach the standard in some areas overall an improvement was made over previous years performance.

6. To ensure the service provided to the public is in accordance with the six Whitehall standards. Not achieved. Failed to meet one sub element target for correspondence by 0.7%.

The Agency targets are set within the context of the DETR Public Service Agreement. Two targets in the agreement were of relevance to the Agency in 1999/2000.

• End the decline in the condition of our motorways and trunk roads (and restore the cuts in the maintenance of local authority principal roads and bridges) On course: condition of motorways and trunk roads improved.
• Complete a "Next Steps" Review of the Agency by July 1999, and introduce a revised set of efficiency and effectiveness targets and measures by March 2000. Achieved.

Recruitment policy

Introduction

1 The Civil Service Order in Council 1995, authorises the Civil Service Commissioners to require departments and agencies to publish summary information about their recruitment policy and annual statistics showing the number of appointments made and the use of permitted exceptions.  

Principles for Recruitment

2 The Agency is bound by the principles for recruitment set out in the Civil Service Commissioners' Recruitment Code, 4th Edition, April 1999.

a Individuals will be selected on merit on the basis of fair and open competition.

b Prospective applicants will be given equal and reasonable access to adequate information about the job and its requirements, and about the selection process.

c Applicants will be considered equally on merit at each stage of the selection process. That process will be based on criteria relevant to the job and applied consistently to all candidates. Selection methods will be reliable, objective and guard against bias.

3 In compliance with Civil Service policy, equal opportunity will apply throughout the recruitment process. Applications will therefore be encouraged regardless of age, gender, race, colour, nationality, ethnic or national origins, disability, religion, sexual orientation, marital status or working patterns.  

Exceptions to the Recruitment Principles

4 The Highways Agency will only permit those categories of exceptions allowed by the Civil Service Order in Council 1995 ie:

a short term appointments

b secondments

c re-appointment or re-instatement of former civil servants

d transfers into the Civil Service

e surplus acceptable candidates for shortage posts; and

f disabled candidates.

5 Any cases (at whatever level) within these categories, but which do not fall within the provisions of the Code, will be referred to the Civil Service Commissioners to consider. In relation to the Senior Civil Service, the approval of the Civil Service Commissioners will be sought before appointments are made using the exceptions, apart from appointments of less than 12 months.

6 As permitted by the Order in Council, the Highways Agency may offer encouragement or assistance in the process of selection to disabled applicants which may not be available to other candidates (category 4(f) above). In this context a disabled person is someone who declares that they have a physical or mental impairment which is expected to last for at least 12 months and which has an adverse effect on their ability to carry out normal day to day activities. Any disabled applicant who meets the minimum criteria specified for a post will be guaranteed an interview for that post.  

Audit

7 There will be two levels of audit for the Highways Agency's recruitment policy and procedures:

a by independent consultants appointed by the Office of the Civil Service Commissioners to verify the adequacy and compliance of our systems in fully meeting the requirements of the Code; and

b by HA internal auditors to reassure the Chief Executive about the adequacy and use of management controls to ensure that delegated recruitment complies with the requirements of the Code.

Click to view PERFORMANCE AGAINST MILESTONE TARGETS 1999/2000

Congestion map

Click on the map to view a larger image.

Residual life map

Click on the image to view a larger version.

The map above shows that 88% of the asphalt covered motorway network has in excess of five years life.

 

1 Residual life is defined as the life remaining in the road before it reaches a point at which the rate of deterioration is no longer predictable.

2 The blue lengths shown on the map represent concrete carriageway which is not measured in residual life terms.

3 Where gaps appear on the map, this indicates no motorway route.

	Years	% of motorway network	Length in km
	Less than 0	5.2	218
	0 to 4	6.8	286
	Greater than	4 88.0	3686

Highways Agency Accounts for the year ending 31 March 2000

History and Background

The Highways Agency was created in 1994 as an Executive Agency of the Department of Transport (now Department of Environment,Transport and the Regions DETR).  

Principal Activities

The aim of the Agency is to contribute to sustainable development by maintaining, operating and improving the motorway and trunk road network in support of the Government's integrated transport and land use planning policies. As network operator, it manages some 6,350 miles (10,200km) of trunk roads and motorways and delivers the Secretary of State's programme of motorway and trunk road improvement schemes.  

Funding

For the 1999/2000 financial year, the Agency was funded on a gross running cost basis from within Class III, Vote 8 of the DETR Appropriations Account. The Agency was allocated £1.47bn against which it spent £1.46bn.  

Review of the Year

A review of the year is contained in the body of the Annual Report.  

Future Developments

In continuance of the policy set out in the 1998 White Paper A New Deal for Transport: Better for Everyone, the Agency will continue to negotiate the transfer of responsibility for non-core network routes to local authorities.

During the last year the Agency undertook a review of its strategic planning and programming processes with the aim of creating a new structure that would better support the Board and improve liaison relationships with DETR. Proposals have been accepted by the Board and will be implemented during the forthcoming year.  

Important events since the end of the Financial Year

On 3 July 2000, the Agency transferred its trunk road network assets within the boundary of Greater London to the newly created Greater London Authority (GLA).These assets comprised roads, structures, communications, lands, surplus properties, stocks and debtors. Liabilities for contractors' costs, land acquisition and compensation costs and bridge strengthening work, associated with these assets, were also transferred.

The net value of the assets to be transferred is estimated at £6.2bn, as at 31 March 2000.This transaction will be reported in the Agency's 2000/01 accounts, as a transfer of function. Accordingly, the Agency's reserves will be reduced by an amount equivalent to the net value of the assets transferred. The 1999/2000 comparative balance sheet figures will be restated.

On 20 July 2000, the Deputy Prime Minister presented the Government's ten-year investment plan to modernise the nation's transport system. As part of the plan, £22bn has been earmarked for the Agency to improve services for its customers. The Agency's strategy to meet the challenge of the plan is set out in "Strategic Roads 2010".  

Board

The composition of the board during the year was:

Lawrie Haynes	Chief Executive to 31 October 1999
Peter Nutt	Network & Customer Services Director to 31 October 1999 Acting Chief Executive from 1 November 1999
John Kerman	Quality Services Director
Hazel Parker-Brown	Human Resource Services Director to 3 September 1999
Ginny Clarke	Acting Human Resource Service Director from 6 September 1999
Jon Seddon	Finance Services Director
David York	Project Services Director
Richard Thorndike	Acting Network & Customer Services Director from 1 November 1999

Lawrie Haynes was appointed through an open competition which was advertised in the press. His appointment, initially for 5 years from 1 April 1994 until 13 February 1999, had been extended until 30 September 2001. He terminated his contract with the Highways Agency on 31 October 1999. Peter Nutt replaced him as Acting Chief Executive on 1 November 1999, pending recruitment of a substantive Chief Executive through open competition.

Tim Matthews joined the Agency as the Chief Executive on 25 September 2000 and was appointed through an open competition.

The remuneration of the members of the Board is based on Senior Civil Service Salary Reviews, except for Jon Seddon who had a fixed term contract for the period 7 November 1994 to 6 May 2001. He terminated his contract with the Highways Agency on 7 September 2000. Mel Quinn replaced him as Acting Finance Director, pending recruitment of a substantive Finance Director through open competition. The remuneration details of the board are set out at Note 2 to the Accounts.  

Advisory Board

Responsibility for advising the Secretary of State on the performance of the Agency lies with the DETR Permanent Secretary assisted by an Advisory Board. Members during 1999/2000 were:

Sir Richard Mottram KCB	(Chairman, Permanent Secretary)
Lawrie Haynes	(to 31 October 1999)
Peter Nutt
John Kerman
David York
Chris Brearley CB	Director General, Planning, Roads and Local Transport
Diane Phillips CB	Director, Roads and Traffic, DETR (to 31 January 2000)
Dennis Roberts	Director, Roads and Traffic, DETR (from 1 February 2000)
Neil McDonald	Divisional Manager, Roads Policy Division, DETR
Wendy Pritchard	Independent Consultant (to 31 August 1999)
David Cawthra CBE	Independent Consultant (to 31 August 1999)

 

Equal Opportunities

There is a well-established Equal Opportunities Action Plan that is reviewed, updated and published each year. Through this the Agency is committed to helping all staff, regardless of gender, ethnicity, disability, age, religion, sexual orientation, marital status, care responsibilities or working patterns, to make the most of their opportunities for selection, promotion and development. We believe that all staff are entitled to be treated fairly and with respect.  

Disabled Persons Policy

The Agency is committed to helping disabled staff make the most of their opportunities for selection, promotion and development. As a demonstration of this commitment, the Agency has been awarded the two tick Disability Symbol by the Employment Service, which enables staff with disabilities to be guaranteed an interview for a post provided they meet the minimum criteria specified.  

Employee Involvement

The Agency seeks to maximise every communication channel to employees in order to involve them in the running of the organisation. This is done through a variety of methods, including regular in-house newsletters and bulletins, management briefings, trade union consultation and widespread training programmes.  

Policy on payment of supplies and payment performance

The Agency aims to settle all valid invoices within contract terms, which are usually 30 days but 40 days for consultant and land compensation payments. During 1999/2000, the Agency paid 91.2% (1998/99 96.3%) of invoices within this target.

The Agency is rationalising its accounts payable function. This includes reducing the number of local payment centres and centralising the function in a single office in Birmingham. Two centres were closed during the year. Payment performance was affected during this transitional period as new staff in Birmingham were recruited and trained and by the prolonged closure of the business over the millennium period. Two further centres will be closed during 2000. In planning the transfer of the remaining functions, the Agency has actions in hand to ensure we do not experience similar problems in meeting our Prompt Payment Initiative (PPI) obligations.  

Year 2000 Issue

The Agency undertook a comprehensive Year 2000 Programme and achieved compliance of all of its major systems by June 1999 at a cost of £7.5m. The Agency has not experienced any significant problems arising from the millennium issue.  

Introduction of the Euro

No expenditure was incurred in 1999/2000 in connection with the preparation for the Euro. The Agency is currently reviewing the potential impact of the Euro on our operations and is preparing an appropriate action plan.  

Basis of accounts

These accounts have been prepared in accordance with the HM Treasury Resource Accounting Manual. The Treasury did not issue a separate accounts direction for the Agency's 1999/2000 accruals accounts, so there is no statutory basis for a formal audit opinion by the Comptroller and Auditor General on these accounts. They are, therefore, formally classified as unaudited. However, the National Audit Office has undertaken a full audit of the Agency's accounts as an integral part of its audit of the Department of the Environment, Transport and the Region's 1999/2000 resource accounts. Issues relating to the audit of the Agency's accounts are dealt with in the C&AG's opinion and report on the DETR accounts.

Tim Matthews
Accounting Officer

22 December 2000

Statement on the system of internal financial control

As Accounting Officer, I acknowledge my responsibility for ensuring that an effective system of internal financial control is maintained and operated by the Highways Agency.

The system can provide only reasonable and not absolute assurance that assets are safeguarded, transactions authorised and properly recorded, and that material errors or irregularities are either prevented or would be detected within a timely period.

The system of internal financial control is based on a framework of regular management information, administrative procedures including the segregation of duties, and a system of delegation and accountability. In particular, it includes:  

Comprehensive budgeting systems with an annual budget which is reviewed and agreed by the Board

The Agency assembles an annual budget consistent with the allocations resulting from the Comprehensive Spending Review agreed with DETR and HM Treasury. In preparing budgets staff use two manuals, Budget User Guide and Bidding Pack, and standardised budget templates. The Agency's organisational structure enables these guides and templates to be distributed by the corporate business management function to local business management teams and to be cascaded through Directorate operational teams. The Board reviews and approves the annual budget.  

Regular reviews by the Board of periodic and annual financial reports, which indicate financial performance against the forecasts

The Finance and Business Management Action Group (FBMAG), a sub-group of the Board, reviews financial reports on a monthly basis, following which a report is made to the Board. The FBMAG rigorously monitors, at business level, performance against objectives on a quarterly basis. I attend the quarterly business reviews personally. FBMAG also discusses and addresses any specific financial issues that arise in the Agency.

The basis of the reviews is the monthly management reports. These provide forecasts, budgets and variance analysis prepared by the Directorates and allow the Board to monitor the key business activities and risks and the progress towards meeting the financial objectives set for the year.  

Setting targets to measure financial and other performance

Key targets are set as part of the Agency's business planning process. The process is initiated internally by the Agency proposing a costed programme aimed at discharging the Secretary of State's obligation for maintaining, operating and improving the trunk road network in support of the Government's integrated transport and land use planning policies. The programme, including a resource allocation, is agreed following discussions and negotiations between the Agency, DETR, and Ministers. The agreed programme is further developed by the Agency producing a business plan and an internal Agency management plan including key annual targets and performance measures. The business plan is agreed initially with DETR and the Highways Agency Advisory Board and subsequently ratified by Ministers.

The key targets are cascaded to Directorates and Divisions via an Agency management plan that provides clear responsibility for the delivery of the targets. More specific targets and objectives are transmitted in individual Directorate and Divisional management plans. Objectives are cascaded to individuals through their job descriptions and personal development plans. The Agency controls, and monitors achievement of the targets by regular reviews of performance, by the Board.  

Clearly defined capital investment control guidelines

The Agency uses a number of structured systems and techniques to appraise investment in projects including value-adding techniques such as value management and value engineering. A Capital Investment Committee operates within the Agency with the objective of improving the added value of the Agency's spending.

Decisions on investments in the trunk road infrastructure of £5m or below are made by the Agency. Further approval must be sought from DETR for decisions on investments above £5m.  

Formal project management disciplines

The Agency's Managing Agency Project (MAP) II projects aims to build on well-established formal project delivery disciplines within the Agency. It seeks to establish a new Agency `ethos' for project delivery in the Agency with a view to improving the delivery of all activities in terms of requirement, time and resource. The project will include the implementation of a new framework for the delivery of projects and the introduction of consistent IT support systems to support and reinforce both the ethos and the framework. The project, currently in the implementation stage, is forecast to be completed by the end of December 2000.  

A system of financial delegation and accountability

Financial authority is cascaded from myself as Agency Accounting Officer through Board members to Agency staff. The current delegations framework is under review and a new framework is expected to be implemented during the forthcoming financial year.

The Highways Agency has an internal audit unit, which operates to standards defined in the Government Internal Audit Manual. The work of the internal audit unit is informed by analysis of the risk to which the Agency is exposed, and annual internal plans are based on this analysis. The analysis of risk and the internal audit plans are endorsed by the Agency's Audit Committee, which I chair. Annually, the Head of Internal Audit (HIA) provides me with a report that summarises internal audit activity in the Agency. The report includes the HIA's independent opinion on the adequacy and effectiveness of the Agency's system of internal financial control. During the course of the year the HIA also provides interim reports to the Audit Committee on emerging findings relating to the framework of internal control.

My review of the effectiveness of the system of internal financial control is informed by the work of the internal auditors, the Audit Committee which oversees the work of the internal auditor, the executive managers within the Agency who have responsibility for the development and maintenance of the financial control framework, and comments made by the external auditors in their management letter and other reports.

Notwithstanding the above control framework, I acknowledge that further work has to be done in respect of the Agency's lands liabilities.

At the balance sheet date the Agency had approximately 4,000 individual land acquisition, blight and compensation liabilities, details of which were previously held on individual case files extending over several years. In preparing for the accounts the Agency sought to transfer these records from a paper to an electronic medium. Errors arising out of the transfer of the data were identified.

The Agency has a programme of work in hand to identify and correct any outstanding errors in the liability as well as introducing new controls over the updating and maintenance of the new electronic system.

The Agency is also considering further the appropriateness of the current accounting treatment and recognition within the accounts of seven Design, Build, Finance and Operate (DBFO) road schemes. The new build element of these schemes, valued at £984m, is not recognised in the Agency's balance sheet other than as an intangible asset, valued at £195m, representing the reversionary interest in the new build element at the end of the DBFO contract period.

The correct accounting treatment is based on analysis and conclusions drawn from work carried out to date by the Agency. I recognise that this analysis is not necessarily conclusive and further work is being undertaken to confirm, or correct, the treatment.

As Accounting Officer, I am aware of the recommendations of the Turnbull Committee and am taking reasonable steps to comply with the Treasury's requirement for a statement of internal control to be prepared for the year ended 31 March 2002, in accordance with guidance to be issued by the Treasury.

Tim Matthews
Accounting Officer

22 December 2000

Statement of Highways Agency and Chief Executive's responsibilities

1. The Accounts have been prepared on an accruals basis and must give a true and fair view of the Agency's state of affairs at the year-end of its income, expenditure and cash flows for the financial year.

2. In preparing the Accounts the Agency is required to:

(a) comply with the HM Treasury Resource Accounting Manual, including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis;

(b) make judgements and estimates on a reasonable basis;

(c) state whether applicable accounting standards have been followed and disclose and explain any material departures in the financial statements;

(d) prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Agency will continue in operation.

3. The responsibilities of the Accounting Officer, including his responsibility for the propriety of the public finances for which he is answerable and for the keeping of proper records, are set out in the Accounting Officers' Memorandum, issued by the Treasury and published in Government Accounting.

Tim Matthews
Accounting Officer

22 December 2000

Unaudited operating cost statement

FOR THE YEAR ENDED 31 MARCH 2000
		1999/2000
	Note	£000
Administration Costs
Staff costs	2	50,826
Cost of capital charge		37
Audit fee		265
Other administration costs	3	34,034
Gross administration costs		85,162
Operating income appropriated in aid of the Vote	4	( 1,359)
Net Administration Costs		83,803
Programme Costs
Cost of capital charge		3,295,786
Programme expenditure	3	(1,422,243)
Gross programme costs		1,873,543
Operating income:
appropriated in aid of the Vote	4	(13,025)
not appropriated in aid of the Vote	4	(10,982)
Net Programme Costs		1,849,536
Net Operating Cost		1,933,339

 

UNAUDITED STATEMENT OF RECOGNISED GAINS AND LOSSES FOR THE YEAR ENDED 31 MARCH 2000
		1999/2000
	Note	£000
Gain on the revaluation of tangible fixed assets	17	10,986,954
Loss on network detrunkings	17	(72,498)
Total recognised gains & losses for the financial year		10,914,456

There were no acquisitions or discontinued operations in the year.

Unaudited balance sheet

FOR THE YEAR ENDED 31 MARCH 2000
AS AT 31 MARCH 2000
		31 Mar 00	31 Mar 99
	Note	£000	£000
Fixed Assets
Tangible Assets	5	62,454,992	48,998,900
Intangible Assets	6	197,269	159,465
		62,652,261	49,158,365
Debtors: amount due after more than one year	7	74,249	73,404
Current Assets
Stocks	9	15,328	11,731
Debtors: amounts due within one year	10	144,766	116,888
Cash at bank and in hand		24,243	-
		184,337	128,619
Creditors: amounts falling due within one year	11	(225,264)	(229,276)
Net Current Assets/(Liabilities)		(40,927)	(100,657)
Total Assets less Current Liabilities		62,685,583	49,131,112
Creditors: amounts falling due after more than one year	12	(105,446)	(96,018)
Provisions for liabilities and charges	13	(769,555)	(958,109)
		61,810,582	48,076,985
Taxpayers' Equity
General Fund	17	50,821,492	48,074,849
Revaluation Reserve	17	10,989,090	2,136
		61,810,582	48,076,985

Tim Matthews
Accounting Officer

22 December 2000

Unaudited cash flow statement

FOR THE YEAR END 31 MARCH 2000
	Note	1999/2000
		£000
Net cash outflow from operating activities		(887,752)
Capital expenditure and financial investment		(568,514)
Net cash outflow before financing		(1,456,266)
Receipts from the Consolidated Fund		175
Financing from the Consolidated Fund		1,484,183
Increase in cash in the period		28,092
Reconciliation of operating cost to operating cash flows
Net Operating Cost	OCS	(1,933,339)
Adjustments for non-cash transactions:
Depreciation/impairment	3	(2,281,642)
Gain on sale of fixed assets	3	(6,434)
Cost of capital charge	OCS	3,295,823
Notional audit fee	OCS	265
Movements in working capital other than cash	8	28,345
Increase in debtors due after one year	7	(845)
Increase in creditors due after one year	12	9,428
Decrease in provisions for liabilities and charges	13	647
Net cash outflow from operating activities		(887,752)
Analysis of capital expenditure and financial investment
Investments in the road network		502,886
Other fixed asset purchases		29,817
Investment in intangible assets		99,831
Proceeds from sale of fixed assets		(64,020)
Net analysis of capital expenditure and financial investment		568,514
Analysis of financing
Payments to Consolidated Fund
Receipt of amounts relating to previous year		9,076
Surrender of Consolidated Fund Extra Receipts		(8,901)
		175
Funding from Consolidated Fund
Supply Vote granted (Appropriation Account, Class III Vote 8)		1,484,184
Less undrawn grant		(1)
		1,484,183
Increase in cash		(28,092)
Net cash requirement		1,456,266

Notes to the 1999/2000 Agency accounts

These financial statements have been prepared in accordance with the Resource Accounting Manual issued by HM Treasury. The particular accounting policies adopted by the Agency are described below. They have been applied consistently in dealing with items considered material in relation to the accounts. 

1.1 Accounting Convention

These accounts have been prepared under the historical cost convention modified to account for the revaluation of fixed assets, and stocks where material, at their value to the business by reference to their current costs. 

1.2 Tangible Fixed Assets

Title to the freehold land and buildings shown in the accounts is held as follows:

(a) property on the departmental estate, title to which is held by the Department of the Environment, Transport and the Regions

(b) property held by the Department of the Environment,Transport and the Regions in the name of the Secretary of State.

Freehold land and buildings have been restated at current cost . They are valued on the basis of open market value for existing use. Valuations are undertaken by professional surveyors at intervals not exceeding five years and are adjusted using appropriate indices in the intervening years. Assets held for resale, being land and property released from road schemes, are valued at open market value, less a provision for selling costs.

The motorway and trunk road network is valued at depreciated replacement cost . The network assets comprise carriageways, including earthworks, tunnelling and road pavements; roadside communications; bridges and other structures; and land and buildings within the highways perimeter. Together these assets form a network infrastructure that is intended to be maintained at a specific level of service potential by continuing replacement and refurbishment.

The road network assets are valued by reference to internal costing and physical asset records. A full revaluation is undertaken by professional surveyors at intervals not exceeding five years. In intervening years these valuations are adjusted using appropriate indices and adjusted for any additions or disposals. The estimated un-expired life of the network is reassessed annually and the valuation adjusted as required. Other tangible assets with the exception of IT hardware and office equipment have been stated at current cost using appropriate indices.

Expenditure on road building schemes in the course of design or construction is capitalised as part of the network valuation and indexed in the same way as the valuation of completed roads. Schemes in the course of design are only capitalised where management consider it is probable that the scheme will proceed to construction.

Where management consider it is probable that a scheme will not proceed to construction or where a scheme has been formally withdrawn from the Secretary of State's road programme, cumulative expenditure is written-off to the Operating Cost Statement and any retained land is valued and reclassified as a surplus asset .

The minimum level for capitalisation of tangible assets are:

 

Asset	Minimum
(a) For infrastructure assets	£100,000
(b) For other assets (excluding land)	£2,000
(c) For Land	no minimum

There are no grouped assets. 

1.3 Depreciation

No depreciation is provided on freehold land.

Expenditure on renewals, repair and replacement of the existing road network is charged to the Operating Cost Statement as a proxy for depreciation. Any impairment or conversely improvement, revealed by condition surveys carried out as part of the Agency's asset management programme is charged or credited as further depreciation. These surveys are carried out by external consultants on a rolling basis.

This methodology reinforces the treatment of the road network as an infrastructure asset that is intended to be maintained at a specific level of service potential by continuing replacement and refurbishment.

Impairments in the value of the trunk road network resulting from changes in replacement cost are reflected in the asset valuation and charged against the revaluation reserve. Any impairment which reduces the value below the original 1995 valuation is charged to the Operating Cost Statement . Reversals of impairment are credited to the Operating Cost Statement until the cumulative impairment charge is reversed, and thereafter to the revaluation reserve.

Depreciation of assets is provided at rates calculated to write off the valuation of freehold buildings and other tangible fixed assets on a straight-line depreciation method. Lives are normally in the following ranges:

(a) freehold or leasehold buildings	50 years or length of lease
(b) plant, equipment and computers	3 to 10 years
(c) fixtures and fittings	10 years
(d) vehicles	4 years
(e) Assets in storage	no depreciation

Assets in storage are assets held in Yate stores. They are kept in controlled conditions and do not deteriorate. They have a design life of 60 years. Whilst not depreciated, they are subject to an annual impairment review. 

1.4 DBFO schemes

The accounting treatment of these contracts is based on an analysis of the degree to which contract risk is transferred to the DBFO operator. This analysis has been carried out independently using KPMG in accordance with the instructions and guidance set out in HM Treasury Technical Note No.1 ( revised). Where the balance of risk has been transferred to the operator, the contract has not been recorded on Agency's balance sheet . Where these off balance sheet contracts revert to the Agency at the end of the contract (normally after 30 years) an intangible fixed asset has been recognised. This "reversionary interest" is valued at the net present value of the depreciated replacement cost of the asset at the end of the contract (see 1.5). When ownership reverts back to the Agency it will be recognised as a tangible fixed asset in line with the Agency's standard accounting policy.

Where the balance of the risk has not been sufficiently transferred to the operator the value of the contract is recorded as a tangible fixed asset on the Agency's balance sheet at fair value and a corresponding liability will be set up to record the payments due to the operator for that contract . The liability is reduced over the term of the contract in accordance with FRS5 guidance. 

1.5 Intangible Fixed Assets

These comprise:

(a) the net present value of the residual value of concessions granted in respect of Design Build, Finance and Operate road projects and estuarial crossings where the scheme assets are classified as off-balance sheet (see note 1.4)

(b) software licenses which are valued at historical cost, depreciated over three to ten years 

1.6 Stocks

Stocks are valued at cost, or replacement cost where materially different . Long-term stock holdings for special structures (such as tunnels and bridges) where there are no recent purchases are valued at estimated replacement cost . Where excess or obsolete stock holdings have been identified, a provision has been made to reduce the carrying value to estimated net realisable value. 

1.7 Research and Development

Expenditure on research and development is treated as an operating cost in the year in which it is incurred. Fixed assets acquired for use in research and development are depreciated in accordance with the fixed asset category. 

1.8 Capital Charge

A charge reflecting the cost of capital utilised by the Agency is included in operating costs. The current rate of charge, set by H M Treasury, is 6% of average capital employed during the year. 

1.9 VAT

Input VAT on certain contracted-out services is recovered through the Department of the Environment, Transport and the Regions' registration, under annual Treasury Direction. Irrecoverable VAT is charged to the relevant expenditure category or, if appropriate, capitalised with additions to fixed assets. Income and expenditure is otherwise shown net of VAT. 

1.10 Pensions

Present and past employees are covered by the provisions of the Principal Civil Service Pension Scheme (PCSPS), which is mostly, non-contributory. Although the Scheme is a defined benefit scheme, liability for payments of future benefits is a charge to the PCSPS. Departments, agencies and other bodies covered by the PCSPS meet the cost of pension cover provided for the staff they employ by payment of charges calculated on an accruing basis. There is a separate scheme statement for the PCSPS as a whole. 

1.11 Early Departure Costs

The Agency is required to meet the additional cost of benefits beyond the normal PCSPS benefits in respect of employees who retire early. The Agency provides in full for this cost when the early retirement programme has been announced and is binding on the Agency. The Agency has settled most of its liability in advance by making a payment to the Paymasters account for the credit of the Civil Superannuation Vote. The amount provided is shown net of any such payment

 

2. STAFF NUMBERS AND COSTS
	1999/2000
	No.
The average number of whole time equivalent persons employed
(including senior management) during the year was as follows:	1,624
The aggregate payroll costs of these persons were as follows:	£000
Wages and salaries	40,537
Social Security costs	3,235
Other pension costs	7,054
Total	50,826

For 1999/2000 contributions of £5,788,000 (1998-99 £5,509,000) were paid to the Principal Civil Service Pension Scheme (PCSPS) at rates determined by the Government Actuary and advised by the Treasury. These rates were in the range 12%-18.5% (1998-99 12%-18.5%) of pensionable pay.

 

THE EMOLUMENTS OF LAWRIE HAYNES,AS CHIEF EXECUTIVE, UP TO 31 OCTOBER 99 WERE AS FOLLOWS:
	1999/2000
	£
Salary	70,137
Performance bonus (for	1998/99) 17,335
Taxable benefits	-
Total	87,472

 

THE WHOLE YEAR EMOLUMENTS OF THE ACTING CHIEF EXECUTIVE, PETER NUTT, WERE AS FOLLOWS:
	1999/2000
	£
Salary	82,387
Performance bonus	-
Taxable benefits	-
Total	82,387

The Chief Executive is an ordinary member of the PCSPS.

 

THE SALARIES OF THE OTHER MEMBERS OF THE BOARD WERE IN THE FOLLOWING BANDS:
	1999/2000
	No.
<£40,000	1
£50,000 - £54,999	1
£55,000 - £59,999	-
£60,000 - £64,999	-
£65,000 - £69,999	1
£70,000 - £74,999	2
£75,000 - £79,999	-
£80,000 - £84,999	1
Total	6

 

THE NUMBER AND SALARIES OF OTHER STAFF EARNING ABOVE £40,000 ARE AS FOLLOWS:
	1999/2000
	No.
£40,000 - £44,999	70
£45,000 - £49,999	39
£50,000 - £54,999	12
£55,000 - £59,999	7
£60,000 - £64,999	1
£65,000 - £69,999	1
£70,000 - £74,999	1
£75,000 - £79,999	-
Total	131

Salaries include gross salaries, performance bonuses payable, reserved rights to London weighting or London allowances, recruitment and retention allowances, private office allowances, and long-term detached duty allowances. Bonuses paid in respect of the year are also included.

 

PENSION ENTITLEMENTS FOR SENIOR PERSONNEL:
Name	Age	Salary	Real increase in pension at age 60	Total accrued pension at age 60-31 Mar 00
		£000	£000	£000
Mr Lawrie Haynes*	47	85-90	0.0-2.5	5-10
Mr Peter Nutt	51	80-85	2.5-5.0	25-30
Mr Jon Seddon	43	80-85	0.0-2.5	5-10
Mr John Kerman	53	70-75	0.0-2.5	20-25
Mr Richard Thorndike	55	65-70	2.5-5.0	20-25
Mr David York	49	65-70	0.0-2.5	25-30
Ms Ginny Clarke	45	50-55	0.0-2.5	5-10
Mrs Hazel Parker-Brown**	47	0-40	0.0-2.5	15-20

* to 31 October 1999

** to 3 September 1999

Pension benefits are provided through the Principal Civil Service Pension Scheme (PCSPS).This is a statutory scheme, which provides benefits on a "final salary" basis at a normal retirement age of 60. Benefits accrue at the rate of 1/80th of pensionable salary for each year of service. In addition, a lump sum equivalent to 3 years pension is payable on retirement . Members pay contributions of 1.5 per cent of pensionable earnings. Pensions increase in payment in line with the Retail Prices Index . On death, pensions are payable to the surviving spouse at a rate of half the member's pension. On death in service the scheme pays a lump sum benefits of twice-pensionable pay and also provides a service enhancement on computing the spouse's pension. The enhancement depends on length of service and cannot exceed 10 years. Medical retirement is possible in the event of serious ill health . In this case, pensions are brought into payment immediately without actuarial reduction and with service enhanced as for widow(er) pensions.

 

3A. OTHER ADMINISTRATION COSTS
	1999/2000
	£000
Rentals under operating leases:
Hire of plant and machinery	101
Other operating leases	3,840
Non-cash items:
Depreciation	1,490
Amortisation	548
Provision for doubtful debts	(347)
Other expenditure	28,402
Total	34,034

 

3B. NET PROGRAMME COSTS
	1999/2000
	£000
Research and development expenditure	13,575
Capital maintenance (Note 1.3)	501,112
Current maintenance	238,849
Non-cash items:
Depreciation	412,448
Impairment	(2,696,128)
Gain on disposal of fixed assets	(6,434)
Provision for land & property acquisition (Note 13)	1,448
Other expenditure	112,887
Total	(1,422,243)

Administration costs reflect the costs of running the Agency as defined under the Administration cost-control regime. Programme costs reflect non-administration costs, including any payments of grants and other disbursements by the Agency.

Depreciation includes a charge of £405,663,000 to reflect changes in the condition of the networks identified by condition surveys. The impairment credit is in respect of a reversal of impairment in value previously charged to the operating cost statement in previous unpublished dry run accounts.

 

4. OPERATING INCOME
		1999/2000
	£000	£000	£000
Operating income analysed by classification and activity, is as follows:	Appropriated in aid	Not Appropriated in aid	Total
Administration Income
Fees	693	-	693
Recoveries	14	-	14
Other	652	-	652
	1,359	-	1,359
Programme Income
Rent - external tenants	5,014	-	5,014
Claims against third parties	7,556	-	7,556
Interest earned	-	4,361	4,361
Other CFER	-	6,621	6,621
Other	455	-	455
	13,025	10,982	24,007

Operating income relates directly to the operating activities of the Agency. It principally comprises rent from properties acquired for road schemes which have yet to be disposed, recoveries from third parties for damage to the network, interest for the Severn Bridge subordinated loan (see note 7) and other fees and charges provided on a full-cost basis to external customers, as well as public repayment work . It includes both income appropriated-in-aid of the Agency's Vote and income to the Consolidated Fund, which HM Treasury had agreed should be treated as operating income.

 

5.TANGIBLE FIXED ASSETS
	Trunk road network	Assets under construction	Land & Buildings	Plant & equipment	Total
	£000	£000	£000	£000	£000
At Replacement Cost or Valuation
At 1 April 1999	57,766,118	1,494,638	177,154	76,029	59,513,939
Capital expenditure	122,671	163,154	22,958	6,859	315,642
Disposals / de-trunkings	(81,014)	-	(56,889)	(1,155)	(139,058)
Revaluation	12,006,619	62,001	23,095	2,239	12,093,954
Transfers & reclassifications	581,699	(581,699)	-	-	-
At 31 March 2000	70,396,093	1,138,094	166,318	83,972	71,784,477
Accumulated Depreciation
At 1 April 1999	10,412,897	46,926	3,821	51,395	10,515,039
Charge for the year-dep'n	(2,243,539)	(46,926)	1,188	5,697	(2,283,580)
Disposals /de-trunkings	(8,516)	-	-	(458)	(8,974)
Revaluation	1,105,821	-	40	1,139	1,107,000
Transfers & reclassifications	-	-	-	-	-
At 31 March 2000	9,266,663	-	5,049	57,773	9,329,485
Net Book Value	£000	£000	£000	£000	£000
At 31 March 2000	61,129,430	1,138,094	161,269	26,199	62,454,992
At 31 March 1999	47,353,221	1,447,712	173,333	24,634	48,998,900

An external valuation of the network, as it existed at 31 March 1995, was undertaken during the year by EC Harris - Professional Surveyors. This was based on internal costing and physical asset records provided by the Agency. The valuation has been adjusted for subsequent road pavement additions and network disposals. Bridges and other structures and roadside communications added to the network since 31 March 1995 have been valued using historical records. These will be independently valued during 2000/2001.

An external valuation of the Agency's assets held for resale, being the land and buildings released from the road schemes, was undertaken during the year by the Valuation Office Agency. The valuation was carried out in conjunction with Chartered Surveyors. A valuation of the Agency's interest in its motorway service area leaseholds was also undertaken by the Valuation Office Agency.

In accordance with HM Treasury's Resource Accounting Manual, the balance sheet valuation date for fixed assets is 30 September 1999. However the trunk road network and assets under construction have been indexed to 31 March 2000 to account for the material increase in the Road Construction Tender Price Index (issued by DETR) between September 1999 and March 2000.

 

6. INTANGIBLE FIXED ASSETS
	Reversionary interest in DBFO schemes	Software licenses	Total
	£000	£000	£000
At Replacement Cost or Valuation
At 1 April 1999	157,897	2,986	160,883
Capital expenditure	38,105	1,638	39,743
Disposals	-	-	-
Revaluation	-	-	-
Transfers & reclassifications	-	-	-
At 31 March 2000	196,002	4,624	200,626
Accumulated Depreciation
At 1 April 1999	-	1,418	1,418
Charge for the year	1,391	548	1,939
Disposals	-	-	-
Revaluation	-	-	-
Transfers & revaluations	-	-	-
At 31 March 2000	1,391	1,966	3,357
Net Book Value	£000	£000	£000
At 31 March 2000	194,611	2,658	197,269
At 31 March 1999	157,897	1,568	159,465

The reversionary interest is based on the Public Sector Comparator, (an estimate of what the project would cost if traditional Agency procurement methods were used).The Net Present Value (NPV) of the seven DBFO schemes not accounted for in the Agency's balance sheet is £983.7m . The valuation is based on the RCTPI index as at the 30 September 1999.

 

THE SCHEMES ARE:
		Contract start date	Contract end date	£m NPV
M1-A1	(Yorkshire) link	26 Mar 1996	25 Mar 2026	395.4
A1(M)	Alconbury - Peterborough	8 Feb 1996	7 Feb 2026	192.3
A419 /A417	Swindon - Gloucester	8 Feb 1996	7 Feb 2026	104.6
A50 /A564	Stoke - Derby link	6 May 1996	5 May 2026	37.3
M40	Junctions 1-15	8 Oct 1996	7 Oct 2026	71.2
A19	Dishforth to Tyne Tunnel	15 Oct 1996	14 Oct 2026	47.8
A30 /A35	Exeter to Bere Regis	24 Jul 1996	23 Jul 2026	135.1
				983.7

 

7. DEBTORS:AMOUNTS DUE AFTER MORE THAN ONE YEAR
	1999/2000	1998/99
	£000	£000
Severn River Crossing plc subordinated loan	73,870	72,931
Other	379	473
Total	74,249	73,404

The Subordinated debt loan represents a £60 million index-linked subordinated loan to Severn River Crossing plc, which was advanced on 26 April 1992. It carries an interest rate of 6% and is repayable by the year 2022 or earlier. The increase in the year reflects the current year indexation by means of the RPI,