Highways Agency

Framework document (July 1999) - 1999 report

Foreword by the Deputy Prime Minister

Deputy Prime Minister John Prescott "I am determined to deliver a world class integrated transport system for this country. The Highways Agency has a major role to play in this. On my behalf it manages, maintains and improves the trunk road network which is vital to bus and coach services, road freight and taxis - as well as to private motorists.

"The Agency has responded enthusiastically to the integrated transport strategy we set out in A New Deal for Transport. It has switched its emphasis from being a road builder to a network operator with maintenance its first priority. It takes a proactive and innovative approach to managing traffic on the network through its innovative "Toolkit", using the latest technology to smooth traffic flows and provide improved information. It has also taken a leading role in working with the private sector in developing new ways of delivering maintenance and construction projects more efficiently. It has forged links with other transport operators - including Railtrack and British Waterways - and pursued increased use of other transport modes for example by facilitating park and ride. I am therefore pleased to confirm the continuation of agency status.

"This new Framework Document builds on the Agency's performance in its first 5 years and clarifies its responsibilities for delivering services to trunk road users. It also sets out its role in working with road users, Regional Planning Bodies, local authorities and other interested parties in developing integrated solutions to the transport and land use problems we face. It sets the framework for the Highways Agency to play its full part in delivering our vision for a world class integrated transport system.

"The Agency has an important and demanding job to do. I wish the Chief Executive and his staff every success.

Rt Hon John Prescott, MP

Deputy Prime Minister and Secretary of State for the Environment, Transport and the Regions

July 1999

Introduction

1.1 The Highways Agency is an Executive Agency of the Department of the Environment, Transport and the Regions. This document sets out the roles and responsibilities of:

the Highways Agency;
the Department of the Environment, Transport and the Regions (Central) (DETR(C)); and
Government Offices
and the framework within which they operate.

1.2 The Highways Agency discharges most of the Secretary of State's responsibilities for trunk roads in England (see Section 3 for details). It also works with the rest of the Department and Government Offices in formulating advice on integrated transport and land use issues more generally.

Aims and Objectives of the Highways Agency

Aim

2.1 The strategic aim of the Highways Agency is:

"To contribute to sustainable development by maintaining, operating and improving the trunk road network in support of the Government's integrated transport and land use planning policies"

Objectives

2.2 The key objectives of the Highways Agency are:

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 network operator by implementing traffic management, network control 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 to travellers, monitoring and publishing information about the performance and reliability of the network; and
to be a good employer, managing the Agency's business efficiently and effectively, seeking continuous improvement.

In pursuing these objectives the Highways Agency will work in partnership with local highway authorities to share information and expertise on the management, maintenance and improvement of roads.

The Role of the Highways Agency

3.1 The Highways Agency is responsible on behalf of the Secretary of State for:

the operation of the network including management of traffic;
the maintenance of the network in a safe condition and so as to minimise expenditure over time; disruption to users and others affected; and adverse impact on the environment;
the development and implementation of a programme of improvements to make better use of the existing network without major additions to the infrastructure;
the development and implementation of major schemes ¹ approved by the Secretary of State as efficiently and effectively as possible;
the exercise of development control powers of the Secretary of State as Highway Authority;
the provision of advice on the performance of, and scope for improving, the network to regional planning bodies and local highway authorities; and
reporting to and advising the Secretary of State on the performance of the network and matters affecting it;

including such related tasks, activities and liaison with users, highway authorities and other interested parties, as is necessary for the effective and efficient discharge of the above responsibilities.

3.2 In addition the Agency will:

provide advice on roads issues to Ministers and DETR(C);
consult with and provide advice to Government Offices as set out in a Service Level Agreement;
provide technical services, advice and guidance to local highway authorities and structure owners within a remit given from time to time by Ministers;
represent the Government's interests on relevant international technical committees and where appropriate, have regard to export opportunities for the UK private sector; and
develop, publish, review and maintain engineering and other standards in concert with the Office of the Scottish Executive, the National Assembly for Wales and the Department of the Environment for Northern Ireland or any successor body.

3.3 The following responsibilities have been retained by the Secretary of State:

overall Government policy on trunk roads in England;
the addition of roads to, or the removal of roads from, the trunk road network;
decisions on what major schemes should be taken forward to improve the network. (In most cases the need for a major scheme will be identified by regional planning bodies as part of the regional planning process. The Secretary of State will decide whether such schemes will be taken forward as part of considering draft Regional Planning Guidance);
decisions following public inquiries into orders relating to trunk roads;
policy on road user charging on trunk roads;
policy on the development of the use of private finance for roads;
the methodology to be used in the appraisal of improvements to the trunk road network.

1 A "major scheme" is a scheme or group of related schemes (other than maintenance schemes) costing more than £5m. Schemes shall be deemed to be related if they are contiguous or the benefits which one is expected to deliver are dependent to a significant degree on another scheme.

Discharging the Role of the Highways Agency

Planning Framework

4.1 The Corporate Plan will set out an agreed planning framework for the Agency for a period of at least three years and consider in general terms proposed longer term initiatives. Its content will be agreed between the Agency and the Sponsor Division. The Corporate Plan will be considered by the Sponsor Division and the Highways Agency Advisory Board before being submitted to the Secretary of State for approval.

4.2 The Highways Agency and the Sponsor Division will work together to develop for consideration in each public expenditure review a range of options to deliver the Secretary of State's policies. The Agency will also provide such other supporting information as may be required for the public expenditure review process.

4.3 Each year the Agency will submit a Business Plan to a timetable agreed with the Sponsor Division. This will be considered by the Sponsor Division and the Highways Agency Advisory Board before being submitted to the Secretary of State for approval. The Business Plan will cover the forthcoming financial year. Its contents will be agreed from time to time between the Agency and the Sponsor Division. It will, however, include:

agreed performance indicators and targets;
the broad strategies to be followed in each of the main areas of the Agency's activity;
the programmes and resource requirements for each main area of activity;
the Highways Agency's plans to discharge its remit to provide advice to local highway authorities;
plans to improve the efficiency and effectiveness with which the Highways Agency discharges its responsibilities;
information on trends and assumptions.

4.4 The Business Plan will be published.

Implementation of Plans

4.5 In carrying out its tasks the Highways Agency will:

consult widely with users and others directly affected by the roads for which it is responsible, including local authorities, regional planning bodies, Government Offices for the Regions and other interested parties;
act in accordance with the agreed Business Plan and budgets, notifying Ministers immediately of any material departures from them;
report progress on a basis to be agreed with the Sponsor Division from time to time;
act in accordance with wider Government initiatives and policies;
seek prior Ministerial approval for any actions or initiatives which may prove contentious;
inform Ministers of any issues which could give rise to substantial public or parliamentary concern;
provide all such support in terms of advice on correspondence and briefing as Ministers may require;
agree its programme to make better use of the existing network in accordance with paragraph 5.6 below;
take forward major road schemes in line with scheme briefs approved by Ministers so as to deliver the specified outputs and outcomes as efficiently and effectively as possible within the agreed cost, reverting to the Sponsor Division in the first instance and, if they so advise, to Ministers should it prove impossible to deliver the scheme within the scheme brief. Guidance on scheme briefs and the procedures for progressing major schemes shall be agreed from time to time between the Agency and the Sponsor Division and approved by Ministers;
in order to ensure proper co-ordination of activity across Government, only take forward significant new initiatives which may have a major impact on other modes of transport or wider policies with either the agreement of the relevant Department or Division in DETR(C) or the approval of Ministers;
carry out a programme of research and development reflecting the aim and objectives of the Agency, in accordance with the Memorandum of Understanding between DETR(C) and the Highways Agency on their respective areas of research, dated 9 March 1999, or any subsequent revision to it;
maintain an up to date charter for road users, in line with Cabinet Office guidance; and
jointly with the Sponsor Division, further develop performance indicators to measure the performance of the Agency and of the network.

Highways Agency Chief Executive

4.6 The Chief Executive of the Agency is appointed by the Secretary of State, generally by open competition for a fixed term. The Chief Executive is a civil servant and subject to the Civil Service Code. The appointment may be renewed.

4.7 The responsibilities of the Chief Executive derive from the Secretary of State's responsibilities as Highway Authority for the management, maintenance and improvement of trunk roads in England. The Secretary of State's responsibilities in respect of other roads will not be exercised by the Chief Executive unless specified in this Framework Document or otherwise agreed between the Secretary of State and the Chief Executive.

4.8 The Chief Executive is responsible to the Secretary of State for the effective and efficient discharge of all of the tasks and responsibilities given to the Highways Agency in this Framework Document.

4.9 The Chief Executive will ensure that Agency staff work closely and co-operate with DETR(C) on all matters for which the Secretary of State, the Permanent Secretary, Policy and Sponsor Divisions are responsible.

4.10 The Chief Executive has personal access to the Secretary of State on any issue affecting the Highways Agency and its work.

4.11 The Chief Executive is appointed as an Additional Accounting Officer in the Department with responsibility for the resources voted by Parliament for the Highways Agency. The Chief Executive is responsible for the propriety and regularity of these finances.

4.12 The Chief Executive will normally be asked to represent the Secretary of State and answer for the Secretary of State at hearings of Parliamentary Committees when operational matters concerning the Agency are discussed.

4.13 The Chief Executive is liable to be summoned to appear before the Public Accounts Committee to account for the discharge of responsibilities falling to the Chief Executive under the terms of this Framework Document.

4.14 The Agency is subject to the jurisdiction of the Parliamentary Commissioner for Administration. The Permanent Secretary is the Principal Officer of the Department for this purpose but will delegate to the Chief Executive responsibility for replying on any matters concerning the Agency. The Chief Executive is responsible for ensuring that effective procedures for handling complaints about the Highways Agency are established and published and for replying to complaints personally if they cannot be satisfactorily resolved by other means.

Role of the DETR(C) and the Advisory Board

The Secretary of State

5.1 The Secretary of State will:

set the aim and objectives of the Highways Agency;
with the approval of the Prime Minister, appoint the Chief Executive of the Highways Agency;
consult the Chief Executive about the future development of the trunk road network;
approve the Highways Agency's Corporate and Business Plans and the targets, strategies and programmes they set out;
determine the level of resources to be made available to the Highways Agency, including the broad split between the main areas of activity;
monitor performance against the targets set and expect to be informed immediately should it become clear that the Highways Agency will not be able to deliver in line with the approved plans;
not normally become involved in matters for which the Highways Agency is responsible;
encourage MPs and others to write direct to the Chief Executive about matters for which the Highways Agency is responsible; and
approve revisions to the Framework Document.

Permanent Secretary

5.2 The Permanent Secretary is the Department's Principal Accounting Officer and the principal adviser to the Secretary of State on matters affecting the Department as a whole, including questions of allocation of resources, expenditure and finance. The Permanent Secretary is responsible for the management of the whole DETR organisation and may be called upon to account to Parliament for its effectiveness and efficiency. The Permanent Secretary will advise the Secretary of State on the appointment and performance of the Chief Executive.

5.3 As "Fraser Figure" for the Agency, the Permanent Secretary is the focal point at senior level within the Department for "challenging the performance of the Chief Executive and for supporting and facilitating his work in meeting his objectives and key targets". (Fraser Report, para 2.12). In this capacity the Permanent Secretary will in particular:

chair the Highways Agency Advisory Board; and
seek to ensure that the relationship between the Highways Agency and DETR(C) works effectively and efficiently in line with the principles set out in this Framework Document. In particular ensuring that the Agency is consulted about all matters, including policy proposals, having a bearing on the Agency.

Policy and Sponsor Divisions

5.4 The role of the relevant DETR(C) divisions with responsibility for policy on the matters with which the Highways Agency deals and for sponsoring the Agency ² is to advise the Permanent Secretary and Ministers on

the role which trunk roads should perform within an integrated transport policy;
the Highway's Agency's aim, objectives, Corporate and Business Plans;
the Highways Agency's resource proposals (including public expenditure reviews);
the targets to be set;
the Agency's performance;
decisions Ministers may be required to take on matters on which the Agency is required to revert to Ministers;
matters relating to trunk roads which are not the responsibility of the Highways Agency.

5.5 Policy and Sponsor Divisions will work closely and co-operatively with the Highways Agency on all matters covered in the previous paragraph. In particular they will:

consult the Highways Agency and any relevant Government Office before putting relevant advice to Ministers, reporting their views in the submission;
act as champion for the Highways Agency's interests within the Department;
ensure that the Highways Agency is briefed on wider issues which may affect it;
agree with the Agency the content and timing of submission of Corporate and Business Plans and periodic reports on progress; and
jointly with the Highways Agency, further develop performance indicators to measure the performance of the Agency and of the network.

Government Offices for the Regions

5.6 Government Offices carry out the regional responsibilities of DETR, DfEE and DTI. They are the first point of contact with Central Government for local planning authorities in respect of specific land-use planning matters. They liaise with regional planning bodies over the preparation of Regional Planning Guidance which now covers major improvements to the trunk road network and with local authorities over local transport plans. The relevant Government Office is consulted by the Agency on its improvement programme and by the Sponsor Division before putting advice to Ministers. In particular:

Government Offices may recommend switching resources between local transport plans and the Agency's 'Making Better Use' programme;
any such recommendation should either be agreed between the Highways Agency and the relevant Government Office or determined by Ministers, with changes settled in advance of the Business Plan for the year in question.

The arrangements for doing this will be set out in agreed working arrangements between Government Offices and the Highways Agency.

Highways Agency Advisory Board

5.7 The Secretary of State will appoint an Advisory Board to be chaired by the Permanent Secretary and consisting also of the Chief Executive and one or more of the Agency's board members, representatives of the Agency's Sponsor Division, one or more departmental representatives and/or representatives of Government Offices and one or more non-departmental members.

5.8 The Advisory Board's role is to:

advise the Secretary of State on the strategic direction of the Agency;
advise the Secretary of State on the Corporate and Business Plans of the Agency and its performance against the objectives and targets set in them;
advise DETR(C) and the Highways Agency on the Agency's response to wider Government initiatives and business initiatives;
provide the Highways Agency with advice, support and assistance in achieving its aims and objectives; and,
consider as necessary the need for any changes in the Framework Document.

5.9 To assist the Advisory Board, DETR(C) and the Highways Agency will keep non-departmental members of the board informed of Departmental and Agency issues and, in particular, invite them to participate in briefings and other events to help develop their expertise and ensure that best use is made of their expertise in support of the Advisory Board's role.

2 Reference to the Sponsor Division should be taken to include its line management.

Financial Arrangements

Financial Regime

6.1 The Agency is subject to public expenditure controls, including Supply Estimates and the Government public expenditure planning arrangements in force. Its expenditure forms part of the DETR Departmental Expenditure Limit (DEL) and gross running cost limit. Decisions on allocations to the Agency rest with the Secretary of State on advice from the Principal Accounting Officer. The Chief Executive accounts for the Highways Agency Vote. The Agency is controlled on a gross running costs basis. The Chief Executive must ensure that the requirements of Government Accounting are met and that any recommendations of the Public Accounts Committee, other Parliamentary Select Committees or other Parliamentary authority accepted by Government are put into effect.

Annual Report and Accounts

6.2 The Chief Executive will prepare and publish each year an annual report and accounts in accordance with the guidance and accounting policy set out by the Cabinet Office and Treasury.

6.3 The report and accounts will set out the Agency's performance related to the forecasts and targets published in that year's Business Plan and to the Department's own forecasts and targets. The accounts will be audited by the Comptroller and Auditor General, and will be published and laid before both Houses of Parliament.

6.4 The Chief Executive is responsible for ensuring that the Agency's management information and accounting systems allow for detailed and effective control over its use of resources. The accounting system will permit verification of the accounts by the Comptroller and Auditor General and the Agency will maintain the necessary interfaces with the Department's financial and accounting systems. The Agency will supply the Departmental Accounts Branch with such summarised information from the Agency as is necessary for resource accounting purposes.

Financial Delegations

6.5 Subject to the provisions set out below, the Treasury and the Principal Accounting Officer delegate to the Chief Executive the right to approve all items of expenditure, use receipts, let contracts, write off losses and make special payments within the ambit and amount of the Vote which are consistent with the Corporate and Business Plans of the Agency as approved by the Secretary of State and within agreed scheme briefs for major schemes as set out below.

Unlimited within budget and the annual delegation from Treasury, except for

Major schemes ³	within the terms of a scheme brief agreed with the Sponsor Division.
Major scheme studies	up to £50,000 unless agreed with the Sponsor Division (which may also agree a revision to this limit).

The Chief Executive has discretion to authorise financial delegations to staff within the Agency. Such sub-delegations will always be made in writing, with appropriate separation of duties, to ensure the rules governing regularity and propriety are observed and proper accountability maintained.

6.6 The Chief Executive will agree with the Department any proposals which would affect the Highways Agency's share of the Department's running cost limit. The Chief Executive has delegated responsibility for the approval of individual performance bonus payments within Treasury guidelines.

6.7 Within agreed budgets and subject to the above financial delegations, the Agency has authority to re-deploy resources according to Treasury rules on virement. The Agency shall inform DETR(C) of any proposals to vire between capital and current budgets. The Agency and DETR(C) will keep each other informed of any matters which might have an effect on the use of the other's resources and the overall operation of the Departmental Expenditure Limit.

6.8 The Principal Accounting Officer has the ultimate responsibility for ensuring that the Department and the Agency have effective financial management systems and procedures, and that the operation of those systems and procedures is consistent with the requirements of regularity, propriety and the economic and efficient conduct of business.

Contractual Delegations

6.9 The Chief Executive will establish appropriate policies and practices for the Agency's purchasing arrangements, in accordance with Departmental and Treasury guidelines and will ensure that instructions are promulgated to all staff. The Chief Executive has an unlimited delegated authority for competitive procurement and authority for single tender action limited only by the Treasury's overall delegation to Departments. The Chief Executive may authorise contractual sub-delegations to staff within the Agency.

Revision of Delegations

6.10 Delegations to the Chief Executive are subject to periodic review and any changes agreed between the Chief Executive and the Department. Agreed changes are confirmed by letter from the Department to the Chief Executive.

Insurance

6.11 The Agency's risks, including public and employer liability, are carried in line with Government policy on insurance. The Chief Executive will keep DETR(C) informed of the level of any contingent liabilities, including where possible an assessment of their values.

Audit Arrangements

6.12 The Chief Executive will maintain and direct the Agency's internal audit work. The Chief Executive will be supported by an Audit Committee which, inter alia, will approve the internal audit programme of work and consider the main issues arising from the auditors' work.

Internal Audit

6.13 The Highways Agency will establish and maintain arrangements for internal audit in accordance with the objectives, standards, scope and practices set out in Treasury guidance and manuals.

6.14 The Highways Agency Internal Audit Unit's annual report will be copied to the Department's Head of Internal Audit. The Department's Head of Internal Audit will carry out periodic checks to confirm that the internal audit arrangements established in the Agency meet the required standard and will report on these as appropriate to the Chief Executive and to the Permanent Secretary as Principal Accounting Officers. The Department's Head of Internal Audit will not undertake audit work within the Agency unless specifically requested to do so by the Chief Executive or exceptionally by the Principal Accounting Officer after consultation with the Chief Executive.

6.15 The Agency will set up an Audit Committee as a committee of the Board in accordance with Government Accounting and any Cabinet Office and Treasury guidance.

External Audit

6.16 The Comptroller and Auditor General (C&AG) will:

audit the Agency's expenditures and receipts;
examine their regularity and propriety; and
lay the accounts before Parliament.

In addition, the C&AG will have access to the books and records of the Agency in order to follow up any concerns over matters of regularity and propriety and to carry out examinations into economy, efficiency and effectiveness with which the Agency has used its resources in discharging its functions.

Economic Appraisal Audit

6.17 The Chief Executive will provide DETR(C) with such information as it requires for the audit of economic appraisal of schemes or the evaluation of pilot schemes.

3 A "major scheme" is a scheme or group of related schemes (other than maintenance schemes) costing more than £5m. Schemes shall be deemed to be related if they are contiguous or the benefits which one is expected to deliver are dependent to a significant degree on another scheme

Personnel Arrangements

7.1 The Chief Executive is responsible for the personnel management of all Highways Agency staff, other than those within the Senior Civil Service, and except for those matters where responsibility remains with the Cabinet Office.

7.2 Staff of the Agency are employees in the service of the Crown, working for the Highways Agency as part of the Department of the Environment, Transport and the Regions. Staff are employed on the terms and conditions of service that apply within the Highways Agency. Staff are covered by the provisions of the Principal Civil Service Pension Scheme, unless they opt not to be so.

7.3 The Secretary of State has responsibility for the pay and grading arrangements of Agency staff outside of the Senior Civil Service. The Chief Executive exercises that responsibility on the Secretary of State's behalf in accordance with Government public sector pay policy and within any limits set by the Secretary of State. The Agency conducts its own pay negotiations with its recognised trade unions.

7.4 The Permanent Secretary has responsibility for the personnel management of the Agency's Senior Civil Servants within the broad framework set out by the Cabinet Office. In exercising those responsibilities the Permanent Secretary consults the Chief Executive and may delegate certain responsibilities to the Chief Executive by agreement including the management of internal SCS transfers.

7.5 The Highways Agency is responsible for the recruitment of its staff, except for those grades specified in the Civil Service Order in Council 1991, for which any recruitment will be through the Civil Service Commissioners. Recruitment and promotion are on merit. Highways Agency staff will be eligible for promotion and lateral transfer to posts elsewhere in the Department and vice versa.

7.6 The Highways Agency will work towards achieving and retaining the Investor in People (IiP) standard. The Chief Executive is responsible for ensuring the Agency's staff are equipped with the skills, knowledge and other competences necessary to meet business objectives.

7.7 The Chief Executive is responsible for employee relations within the Agency. The Agency attaches importance to consultation with staff and their recognised Trade Union representatives; to the need to make full use of the skills and talents of staff; and to provide staff with opportunities to contribute to decisions affecting their jobs and careers. Consultative arrangements with recognised trade unions are maintained through the Whitley system.

7.8 The Highways Agency is committed to ensuring the equal and fair treatment of all its staff and of all applicants for employment. The Agency has an equal opportunities team which maintains liaison with the Department's equal opportunities team. In addition, the Chief Executive is responsible for ensuring that the Agency's equal opportunities policies are actively promoted and meet statutory and departmental requirements.

7.9 The Chief Executive is responsible for the effective security of Highways Agency personnel, and for the security of the organisation's intellectual and physical assets. In exercising this responsibility the Chief Executive acts within a framework agreed with the Department. The Chief Executive is also responsible for the health, safety and welfare of Agency staff and for meeting statutory and Departmental requirements.

7.10 In dismissal cases, staff in the Agency have a right of appeal to the Chief Executive, the Civil Service Appeal Board and/or the Employment Tribunal as appropriate.

7.11 Some personnel functions will, as agreed, continue to be carried out on behalf of the Agency by the Department. Functions provided in this way will be managed through Service Level Agreements drawn up between the Agency and the Department.

Review and Publication

8.1 The Secretary of State will carry out a further "Next Steps" review of the Agency no later than 2004, in consultation with the Agency, the Treasury and the Cabinet Office. The Secretary of State may carry out a review sooner if policy developments warrant it.

8.2 The Secretary of State or the Chief Executive may propose changes to this Framework Document at any time in the light of experience or to take account of changed circumstances. The need for any change in these arrangements will be considered as necessary by the Highways Agency Advisory Board. Staff and their recognised Trade Union representatives will be consulted as necessary. Any changes will be agreed with the Cabinet Office and the Treasury.

8.3 Copies of this Framework Document and any subsequent amendments to it will be placed in the Libraries of both Houses of Parliament and made available to the Agency's staff and the general public