Business Plan 2003/2004

Contents

Foreword by Chief Executive

1. Introduction

2. Serving our Customers

3. Supporting an Improved Service

Appendices

Download: All 3 Appendicies (629KB PDF)

Business Plan 2003/2004

Foreword by Chief Executive

The English motorway and trunk road network is vital to the social fabric and economic capability of the UK. With car ownership rising and both private and commercial demand increasing year on year, ensuring that our road users have reliable journeys in terms of time is one of our priorities. Tackling this requires an innovative and active approach in managing traffic and making the best use of road capacity whilst keeping the impact on the environment to a minimum. With a successful track record of delivery we are committed to meeting this challenge and delivering the high standards of service our customers and stakeholders expect.

This business plan sets out how we will be following our aim of delivering safer roads, more reliable journeys and better information to travellers, whilst continuing to develop our people and improve our business processes.

Spending Review 2002 provided the Agency with a total budget of £4.1bn in 2003-04. This includes an allocation of £1.7bn, rising to £1.9bn by 2005-06, to enable us to maintain and renew the network and progress many major road improvements, with nine due to open in 2003-04, along with a wide range of smaller safety, congestion and environmental schemes. 2002 also saw the announcement of 92 priority action sites to tackle safety and congestion 'hot spots'. We have also had a major involvement in the Government's Multi Modal Studies, with 6 new major schemes added to the Targeted Programme of Improvements as a result. More are likely to follow when the remaining studies report.

We will be improving the way we communicate with our customers and stakeholders as part of a wide-ranging communications review. We will continue to innovate and introduce new approaches to help us manage the movement of traffic around the network and will make significant progress in delivering the information systems needed to increase predictability of journey times for drivers.

We cannot deliver these service improvements in isolation. We work closely with our suppliers, stakeholders and planning bodies and these partnerships will continue to be developed over the next three years. Completing the move of our non-corporate London based functions to our regional offices will also help to strengthen our regional focus.

Delivering these improvements in service will make a real difference to the lives and work of a huge number of individuals, communities and businesses up and down the country, whether they use our network or are affected by it. These are improvements everyone in the Agency is fully committed to delivering.

tim matthews signiture

Tim Matthews
Chief Executive

Foreword by Chief Executive

Introduction

About us

The Highways Agency is an Executive Agency of the Department for Transport (DfT) responsible for operating, maintaining and improving the strategic road network in England on behalf of the Secretary of State for Transport. We have a major role in delivering the Government's Ten Year Plan for Transport. The Agency's top-level management structure is explained at Appendix 1.

We have a number of regional offices in England, as shown on the inside cover of this plan. These help us to form close links with our local customers and stakeholders and play an active part in the local planning process.

We also fulfil an international role by building good working relationships and sharing experience and expertise with other overseas road administrations. This helps promote the value of UK knowledge, expertise and best practice across the world to support UK industry.

Our purpose and role

Our role as network operator - managing the traffic using our roads and administering the network as a public asset - has developed rapidly over the past two years. This has given us a greater focus on providing a high level of service to road users on our network. To fulfil our role we have a total budget in 2003-04 of some £4.1bn, which includes a charge of £2.2bn for the cost of capital against our net assets which are valued at some £62bn1.

Our new strategic framework, shown in Chart 1.1, supports the DfT Public Service Agreement (PSA) targets objectives aiming to:

The next 5 years will see major improvements across the whole of our work. Critical to this is the satisfactory implementation of our Targeted Programme of Improvements, tackling priority action sites and safety and congestion hot spots. We will continue to maintain the network in a good condition with the minimum of disruption to road users.

We will reinforce our role as a network operator by being more actively involved in influencing travel patterns and managing traffic flows. We will progressively take on greater responsibility for routine traffic management, working in partnership with the police, allowing them to focus on traffic law enforcement and accident investigation. We will be introducing demand management measures and technology-based operational techniques to alleviate conditions on the most-heavily trafficked parts of the network.

There will be a step-change in the delivery of traffic information to travellers. We have been at the forefront of developing highway information technology and important projects. This year the new national Traffic Control Centre will become fully operational, offering improved information on network conditions to drivers.

We will not be doing this work alone. We will be working closely with stakeholders, transport providers and highways authorities so that our joint efforts can be focused on tackling the challenges facing the network.

Chart 1.1: HA Strategic Framework

Aim

Safe Roads, Reliable Journeys, Informed Travellers

Objectives
  1. To deliver a high quality service to all our customers by:
    • Improving road safety
    • Making journeys more reliable through better network management and information
    • Respecting the environment.
  2. To ensure more effective delivery through better working relationships.
  3. To implement best practice and innovative solutions to improve service now and in the future.
  4. To be a good employer.
  5. To be an efficient Agency with effective business processes and resource management systems.
Values

Customer Service

Teamwork

Improvement

Diversity

Best Value

Integrity

A balanced approach to planning and managing our performance

We continue to improve the way we plan and manage our performance. The latest step in this improvement is the development of a 'Balanced Scorecard' of areas, key to the delivery of our objectives and related targets.

As part of this work we have identified five perspectives, mirroring our formal objectives. These are 'Customer Service', 'Teamwork', 'Improvement', 'Diversity' and 'Best Value' and are contained in our Balanced Scorecard shown below. These headings, along with 'Integrity' also comprise our values, which help to create the behaviours needed to deliver our objectives.

The 'balance' is reflected in ensuring that all aspects of our business are carefully managed to deliver our aim. The contents of this Business Plan reflects this new approach.

Key Performance Targets

Challenging but achievable performance indicators and targets in support of the Agency's objectives and the Ten Year Plan for Transport, are agreed with Ministers each year. Performance against our targets is reported to Parliament in our Annual Report.

Our Key Performance Indicators and Targets for the following year are separated into two classes:

A full list, as related to each of our objectives, is shown in Table 1.2.

Explanatory notes covering each performance indicator are provided at Appendix 2.

Table 1.2: Highways Agency 2003-04 Key Performance Indicators
Balanced Scorecard Perspective Objective Key Performance Measure 03-04 Target
Ministerial Targets
Customer Service To deliver a high quality service to all our customers by: 1. Average annual score on Road User Satisfaction Surveys. At least 84%
2. Meet all 13 annual Road Users' Charter targets with a minimum of 9 being validated as met by auditors. 100%
3. The Six Service Standards for Central Government met. 100%
  • Improving Safety;

    (In measures 5 and 6, to allow for expected year to year fluctuations in casualty levels, the Agency will have been deemed to have met the target if the reduction achieved is no more than 5% above the milestone target figures.)
4. Estimated proportion of the network likely to require maintenance in the next year. Between 7% and 8%
5. Reduction in number of people killed/seriously injured on trunk roads compared with the 1994-98 average of 4991. At least 694 (to 4297)
6. Reduction in the slight casualty rate per 100m vehicle km compared with the 1994-98 average of 22.14. At least 0.92 (to 21.22)
7. Reduction in road workers killed per 100,000 - target number. At least 5
  • Making journeys more reliable through better network management and information
8. Percentage of lanes available in peak hours. At least 98.5%
9. Achievement of Major Scheme milestones. At least 47 out of 49
10. Operational HA Traffic Control Centre. 31 March 2004
  • Respecting the Environment
11. Average achievement across the following five sub-indicators:
  • Improve air quality of at least 4 sites in Air Quality Management Areas.
  • Achieve at least 12% of Biodiversity Action Plan, extending across 15 targets.
  • Introduce no less than 8 planting schemes to enhance the landscape.
  • Treat at least 300 lane kms of concrete road surface with lower noise surfacing.
  • Treat at least 2 pollution risk water outfall sites.
At least 95%
Management Targets
Teamwork
  • To ensure more effective delivery through better working relationships.
12. Average score on the Agency's Partnership Satisfaction Survey. At least 83%
Improvement To implement best practice and innovative solutions to improve service now and in the future. . Ensure system is in place to meet the requirements of the DfT Publication and Assessment Scheme. With effect from 30 November 2003
Diversity To be a good employer 14. IiP accreditation. Maintain
15. Improvement in job satisfaction as measured in 2003 Staff Survey. At least 5%
16. Number of interim and final reports against Performance and Development Plans completed within published timeframe. At least 90%
Best value To be an efficient Agency with effective business processes and resource management systems. 17. Percentage invoices paid within contract terms or, if none, within 30 days. At least 98%
18. To achieve administration efficiency savings. 2.5%
19. To remain within the Agency's delegated budget. See section 3

England's strategic road network

The strategic road network operated by the Highways Agency is the single largest Government asset2 valued at over £62 bn3 and comprises some 9,380km/5,863 miles4 of motorways and trunk roads.

The network carries a third of all road traffic in England and two thirds of all freight traffic, with over 170bn vehicle km of journeys undertaken each year5. It provides a vital service to commerce and industry and has a huge impact on the lives of individuals and communities. It is currently divided into 'core' and 'non-core' roads6.

The type of roads comprising the core network vary greatly within and between regions - from single carriageway trunk roads carrying less than 10,000 vehicles a day to motorways accommodating up to 200,000 vehicles a day (see map opposite). About 40% of this network is of motorway standard; while over 60% of the all-purpose trunk roads are of dual-carriageway standard. The core network comprises less than 2.5% of England's roads (about 4,165 miles (6,700 km) out of a total of 176,599 miles (284,000 km)) but carries nearly a third of all traffic and up to two thirds of all freight.

In defining the core network, the Government took into account the following factors:

ImageThe purpose of this network is to provide quick and relatively safe long distance journeys on the strategic national routes.

The remaining 'non core' network is in the process of being detrunked and transferred to local authorities. These routes were considered to service local and regional needs and would be more appropriately managed by local authorities. The detrunking programme is progressing well. Responsibility for all non-core roads is due to transfer to local highway authorities by 31 March 2006. Some 1,550km will already have been transferred, subject to 2002-03 detrunkings being achieved, with a further 1,253km due to transfer in 2003-04. This will leave just 397km to be de-trunked over the remaining two years.

2 Source: HM Treasury National Asset Register. July 2001

3 Source: As at 31 March 2002 (2001-02 Highways Agency Annual Report and Accounts)

4 Source: As at 31 March 2002 (2001-02 Highways Agency Annual Report and Accounts)

5 Source:Transport Statistics 2002

6 The division of the network into 'core and 'non-core' was announced in the 1998 White Paper 'A New Deal for Roads in England'.

Introduction

Serving our Customers

Improving Safety

  • Indicator
  • Target
  • Estimated proportion of the network likely to require maintenance in the next year
  • Between 7% and 8%
  • Indicator
  • Target
  • Reduction in number of people killed/seriously injured on trunk roads compared with the 1994-98 average of 4991
  • At least 694 (to 4297)
  • Indicator
  • Target
  • Reduction in the slight casualty rate per 100m vehicle km compared with the 1994-98 average of 22.14
  • At least 0.92 (to 21.22)
  • Indicator
  • Target
  • Reduction in road workers killed per 100,000 - target number
  • At least 5
ImagesMaintaining the Network

Maintaining the network to keep it safe and available for use is our top priority and accounts for the largest portion of our budget at some £748m. Surveys confirm that the network is in good condition. In order to keep it that way we carry out a wide range of activities, including:

To minimise disruption maintenance is undertaken outside peak hours wherever possible. Over the next three years we will look for ways to further improve our maintenance activities by:

We will also be carrying out a number of maintenance schemes across the country. Examples include:

In 2003-04 we are also introducing a new approach to maintaining our roads over their 'life' - the period between the road being built and being replaced. This 'whole life cost' approach will provide a better and more cost effective balance between the need to carry out work, the cost, and the disruption to road users. We will be developing a new maintenance indicator and future targets based on this approach.

Reducing Casualties

imagesMost accidents on the network are caused by excessive speed or driver error. We will tackle these and other safety problems by:

We will also continue to improve crossing facilities for disabled users, cyclists, horse riders and other non-motorised users and carry out research into the causes of accidents to identify other ways to improve safety.

We will be installing over 6,000 new emergency telephones over the next 3 years. These will offer better sound quality, a text display, be multi language to help non-English speaking users, and have improved facilities for the hard of hearing and disabled.

We will also work to cut accidents at road works for both drivers and road workers. The latest figures from the Health & Safety Executive show there were 22 deaths in 2000 at road works (five of which were road workers) and more than 800 serious accidents. Our challenging targets have been set to meet targets laid down in the Ten Year Plan against a backdrop of increasing road usage. We are committed to the Health & Safety Executive's principles in 'Revitalising Health & Safety', with a new performance target introduced for 2003. We aim to achieve this by:

Local Network Management Schemes

Local Network Management Schemes are small schemes aimed at making better use of the network as it stands. Whilst many of them relate to improving safety, they also deliver improvements in journey reliability, information and the environment.

image

Improving Reliability

  • Indicator
  • Target
  • Percentage of lanes available in peak hours
  • At least 98.5%
  • Indicator
  • Target
  • Achievement of Major Scheme milestones
  • At least 47 out of 49
  • Indicator
  • Target
  • HA National Traffic Control Centre fully operational
  • By 31 March 2004
Images
Managing traffic

Delays caused by volume of traffic, incidents and road works lead to frustration for road users and increased costs for industry. With vehicle ownership rising steadily, demand is forecast to increase further. To tackle this rise we will need to make full use of the latest techniques and technology in managing traffic on the network and minimise delays caused by road works and incidents. These include:

The growing importance of our role as a traffic manager will become evident during 2003-04 with more traffic management initiatives, in partnership with the police, to reduce disruption arising from incidents and minimise delays caused by essential maintenance. We will also be improving measurement techniques to ensure that journey times can be measured, trends analysed and performance managed more effectively. This will, in turn, help us to improve the performance indicators that we use in this area.

National Traffic Control Centre

Key to managing traffic will be our national Traffic Control Centre (TCC) which we will ensure becomes operational by 31 March 2004. This public private partnership will:

We will also be upgrading our telecommunications network to a modern, digital facility, starting in spring 2004, following the award of a public-private partnership contract to improve, operate and maintain this structure.

imagesMajor Schemes

Some problems on the network can only be solved, realistically, by providing more capacity. Capital investment in these improvements will be about £431m in 2003-04. Examples include:

We will also continue to contribute to the Government Office led Multi Modal Studies into solving transport problems.

Details of the Major Schemes and their milestones are shown in Appendix 3.

Major Schemes due to open in 2003-04
Better Information

ImageRoad users want accurate, up-to-date information about road works and conditions on the network to help them to plan their journeys. We currently provide a wide range of information to customers through:

Over the next three years we will also implement a new communication strategy that will better explain the Agency's activities and make it easier for people to contact us.

Image

Respecting the Environment

  • Indicator
  • Target
  • Average achievement across the following five sub-indicators:
    • Improve air quality of at least 4 sites in Air Quality Management Areas
    • Achieve at least 12% of Biodiversity Action Plan, extending across 15 targets
    • Introduce no less than 8 planting schemes to enhance the landscape
    • Treat at least 300 lane kms of concrete road surface with lower noise surfacing
    • Treat at least 2 pollution risk water outfall sites.
  • At least 95%

ImageBalancing the needs of road users with the needs of neighbouring communities and the environment continues to be a high priority for the Agency. We will achieve this balance through programmes to reduce noise and protect the environment. This includes the progression of our Biodiversity Action Plan, published in March 2002, which sets targets over ten years for the protection and encouragement of wildlife on our land. This, alongside our environmental strategy, covers all aspects of the environment including heritage, landscape management, biodiversity and air quality. These support initiatives such as the Biodiversity Strategy for England and the National Air Quality Strategy. Environmental measures include:

 

Customer Feedback

  • Indicator
  • Target
  • Average annual score on Road User Satisfaction Surveys
  • At least 84%
  • Indicator
  • Target
  • Meet all 13 annual Road Users' Charter targets with a minimum of 9 being validated as met by auditors
  • 100%
  • Indicator
  • Target
  • The 6 Service Standards for Central Government met
  • 100%

People at work

During 2003-04 we will continue to gather our customers views through:

We will also be reviewing the Road Users' Charter in consultation with the appropriate stakeholders.

 

Serving our Customers

Supporting an Improved Service

Teamwork

  • Indicator
  • Target
  • Average score on the Agency's Partnership Satisfaction Survey
  • At least 83%
imagesOur Partners

To deliver improvements to our services and the network we need to work closely with a wide range of partners and other stakeholders. These include:

Working with our Suppliers and Industry

We are one of the country's major public sector clients, procuring 95% of our services from external suppliers.

Our Procurement Strategy sets out how we will increase quality and reduce whole life costs, for example by developing longer-term partnerships with fewer suppliers. This approach is a key element of our new highway maintenance and improvement contracts. The Procurement Strategy also sets out how we will speed up the delivery of our major schemes, for example through involving suppliers earlier.

We work closely with industry to improve safety on our network, develop standards, share information and encourage improved products, materials and car designs. We also work with industry on new research and pilot schemes to develop techniques and keep the Agency at the forefront of new developments in technology.

Planning in partnership

We work with Regional Planning Bodies and the Regional Development Agencies to develop recommendations for Ministers as part of the regional planning process. We will continue to build on these relationships to carry forward the proposals on devolved Regional Government in the White Paper "Your Region, Your Choice".

We also work closely with road user representatives and interest groups to identify their priorities and develop route management strategies that reflect their needs.

Delivering improvements in partnering

Over the next three years we aim to:

2003-04 will also see the first tolled motorway in the country, the privately financed and delivered M6 Toll Road outside Birmingham, open to traffic.

Improvement

  • Indicator
  • Target
  • Ensure system is in place to meet the requirements of the DfT Publication and Assessment Scheme.
  • With effect from 30 November 2003
ImagesWhy we need to learn and innovate

To meet our 10 Year Plan targets, we need to ensure that learning, innovation and continuous improvement is embedded into all of our activities through:

Innovation on the network

We have developed innovative forms of contract for maintenance and Design, Build, Finance and Operate (DBFO) schemes. We are working to address common concerns, share best practice and exchange ideas, allowing us to benchmark our performance against similar organisations.

We carry out extensive research into the use of new materials including:

We also carry out wide ranging research into sustainable construction, such as the use of recycled materials in road construction, and using vegetation to stabilise motorway embankments and cutting slopes. We aim to remain at the forefront of strategic road management and new technology by:

The DfT's Publication and Assessment Scheme requires the Agency to publish and assess all research completed, retrospectively since 30 November 2002, within six months of project completion. Work is underway in ensuring that a suitable system is in place to meet this requirement by 30 November 2003.

Innovation in the Agency

By March 2006 we aim to:

Diversity

  • Indicator
  • Target
  • IiP accreditation
  • Maintain
  • Indicator
  • Target
  • Improvement in job satisfaction as measured in 2003 Staff Survey
  • At least 5%
  • Indicator
  • Target
  • Number of interim and final reports against Performance and Development Plans completed within published timeframe
  • At least 90%
ImageAchieving results through our people

The achievement of our objectives depends critically on how our workforce develops and responds to the challenges we face. The five-year objective set out in our Corporate Plan is to have a workforce that is committed, skilled and equipped for the task, of the right size and composition and in the right place. Through the development of a new People Strategy we will ensure that our people management, personnel and development policies and systems fully support our people in the delivery of our business objectives.

Activities will include:

imageDeveloping our skills

Over the next few years our workforce will be taking forward our traffic manager role, while continuing to be a first class asset manager of the road network. We aim to be recognised for our customer focused delivery as well as our technical excellence.

Greater collaboration with our supply partners will require increased project delivery skills and better partnership working. This will involve development of the Project Sponsor role, which focuses increasingly upon contract and performance management.

To gain the confidence of customers, we need to improve the quality of information available. We shall develop our people to communicate clear, reliable and timely information in a professional, courteous and flexible way.

The right resources in the right location

To ensure improved and closer working with customers and stakeholders, we have embarked on the migration of key functions from London to our regional offices. Significant progress has been made and we plan to complete the migration of functions by September 2003. A sizeable number of staff have moved or intend to move with their work. In addition, we have started the recruitment of new staff in the regions, both to take on responsibility for migrated functions and to support increased activity to deliver the 10 Year Plan, as well as providing new skills. In parallel, our estate is being developed to meet our changing accommodation needs.

Best Value

  • Indicator
  • Target
  • Percentage invoices paid within contract terms or, if none, within 30 days
  • At least 98%
  • Indicator
  • Target
  • To achieve efficiency savings
  • 2.5%
  • Indicator & Target
  • To remain within the Agency's delegated Budget
ImageAchieving economy, efficiency and effectiveness

With responsibility for operating a public asset valued at over £62bn, we are embracing best practice management processes through a continuing programme of Business Improvement initiatives. We will ensure that it continues to operate a sound mechanism for internal control through:

ImageManaging our property portfolio

Most major schemes involve acquiring land and property for construction works. We currently own around 530 houses, which were bought before construction works, and we are managing this portfolio to:

We will make more of our houses available to social landlords and key workers in areas of housing need and work with social housing groups to achieve this. Any property or land that is not needed will be sold, taking into account its economic, social or heritage value.

Image

Our Budget

Our Programme and Administration funding is agreed through the Government's biennial spending reviews, with the most recent covering the period 1 April 2003 to 31 March 2006. This provided an increase in programme delivery budgets from £1.7bn (2003-04) to £1.9bn (2005-06). Funding levels for 2004-05 and 2005-06 are indicative and are reviewed by Ministers each year. Details of the full indicative budget are set out in Table 3.1.

Highways Agency Budget (43KB PDF)

Supporting an Improved Service