Introduction
1. In July 2005 we announced that we were making available up to £18 million "pump-priming" funding up to 2007/8 to support the development and appraisal of Congestion TIF packages. Ten areas were awarded funding over two rounds.
2. In parallel we announced that we were prepared to make available up to £200 million per year from 2008/09 up to 2014/15 to support congestion TIF packages, and potentially more should more suitable schemes to a higher value emerge. We have now announced that we are extending the commitment to provide up to £200 million per year to 2018-19 in line with our long term funding profile for transport.
3. To support continued scheme development we are making available further development funding. This will be available for proposals at three stages of development:
* A third round of Pump Priming funding for the development of TIF Business Cases for TIF Programme Entry;
* Proposals that have been formally submitted and where authorities are providing further information to support the assessment by DfT and in parallel developing elements of the proposal while waiting for a programme entry decision;
* Preparatory costs for proposals between Programme Entry and Conditional Approval.
No decisions have been taken on the proportion of the funding available for each stage of funding
4. This paper sets out our approach to allocating this funding and the criteria against which we will assess bids. It should be read in parallel with the Transport Innovation Fund: Guidance on Business Case Requirements for Programme Entry.
[1]
Pump Priming - Round 3
What we are looking for
5. We are particularly looking for packages of measures that combine road pricing with better public transport although we may, by exception, consider bids involving a workplace parking levy.
6. As yet no decisions have been taken on the allocation of Congestion TIF funds to individual schemes. Our aim is to have two or three road pricing schemes fully operational by 2013/14, but the extension of the long-term funding line, and the importance we attach to tackling local congestion problems, means that we may also consider schemes that could introduce road pricing a year or two later.
7. Given the long lead times for the development and introduction of road pricing schemes we are looking for proposals which could come forward as full business cases for programme entry within the next 18 months to 2 years.
8. Pump priming will only be available for the development of proposals into full Congestion TIF Business Cases for Programme Entry. This additional funding is primarily aimed at those areas that are already within the pump-priming programme but we may also consider proposals from new areas that have made significant progress towards the development of credible proposals.
9. We are looking for evidence of a significant local financial contribution to the programme. We would not normally expect to fund more than 50% of total package development costs, but may take into account any local spending incurred before 2008/09 where it can be demonstrated that this was directly related to business case development.
10. Bids should specifically address each of the criteria below.
Criteria
Bids for pump priming will be assessed against:
a. The likelihood of the delivery of a credible full TIF business case within the next eighteen months to two years. Authorities will need to demonstrate significant progress towards developing TIF proposals based around demand management. This includes progress on:
* Development of appropriate analytical tools compliant with WEBTAG;
* Identification of the congestion problem to be tackled through hard demand management and the form of demand management to be developed;
* Consideration of options for complementary public transport investment;
* Engagement with stakeholders and development of a local political consensus on demand management;
* Development of the appropriate capacity and capability to develop a robust business case.
b. The strategic fit of the proposals with the objectives for Congestion TIF schemes, covering:
* Their potential to be effective in tackling a current or emerging congestion problem, so that transport can promote wider economic growth, social inclusion and environmental objectives, in a sustainable way;
* The extent to which the scheme fits with the Government's strategic aims and objectives for road pricing, through improved understanding of scheme design, technology, implementation and operation;
* The extent to which they combine effective demand management with better public transport, especially bus service improvements, in mutually supportive packages;
* The potential of ideas/approaches to be transferred elsewhere;
* The potential for public transport patronage growth;
* The extent of coverage of the scheme proposed. We expect to give greater weight to schemes where the impact of the scheme could bring benefits across a wide geographical area;
* The long term financial impacts of the scheme.
12. Authorities that have already benefited from pump-priming will also need to demonstrate how it has delivered significant progress towards development of proposals in line with published TIF Guidance. We will take into account their progress to date against milestones for previous allocations of pump priming. We will not consider funding for programmes of work already covered by pump priming, nor for cost overruns on existing work programmes.
13. The Department is exploring, through the Demonstrations Project, the potential for using more sophisticated technology that would support pay-as-you-go style schemes. We will want to discuss with authorities how this could be accommodated within their schemes as they develop.
14. We would expect authorities to demonstrate local political support for the development of a package of measures based around demand management - road pricing or, by exception, a workplace parking levy. This includes how agreement would be reached, where appropriate, across multi-authority areas.
Additional information sought
15. Bids should also include:
* The name of the authority (or authorities) submitting the proposal (making clear whether it is a joint proposal covering more than one authority) and the names of the signing Officers or Members.
* Where appropriate, details of the current programme for TIF pump priming work including evidence that the funds allocated have been spent effectively and milestones achieved.
* A detailed, costed work programme through to submission of a programme entry business case within a eighteen months to two years. This should include the amount of funding sought from DfT for business case development and the contribution this represents to total development costs, and how it will be used.
* Details of the project team undertaking the development of proposals, including consultancy support engaged.
* For areas that have not previously benefited from pump priming, an initial proposition for the governance arrangements that would be put in place to manage the bid should it be successful.
Funding available
16. Even with the extension of the funding line, TIF funding is limited and we only expect to support a very small number of areas through pump-priming over the coming two years. Nor have we any plans to run further rounds of pump priming at this stage.
17. Most pump-priming funding for business case development will be available for 2008/09, although a smaller amount may be available in the following year. We have not set a limit on the amount of funding available for this, but we expect authorities to be realistic in the amount they will be able to spend within a year. Authorities will not ordinarily be able to carry forward unspent funds into subsequent years. Authorities are welcome to discuss funding requirements with theirDepartmental contacts in RLTD advance of submitting a bid. We may also ask authorities to reconsider the amount of funding they have bid for.
18. The process for allocating pump priming funding is separate from the process of allocating the main TIF funds. It is not necessary to have had a successful pump-priming bid in order to apply for funding from TIF through the congestion entry point. Nor does a successful pump-priming bid offer any guarantee of success in a bid for main TIF scheme funding.
Submitting Bids
19. Authorities are invited to submit bids as and when they are ready up to 30th May 2008 - we will not consider any bids submitted after that date. However, we are anxious to ensure the minimum disruption to authorities' workplans. Where an authority submits a bid in advance of this date, we will aim to make a decision at the earliest possible date.
20. Questions relating to this guidance should be directed to
congestion.tif@dft.gsi.gov.uk, or to Stephen McFarlane (020 7944 6120).
21. All bids, whether successful or not, will be made available to the public once decisions have been made.
Post-Bid / Pre-Decision Development Funding
Overview
22. We made available a small amount of additional funding in January 2008 to local authorities who submitted business cases for TIF programme entry in 2007. This was to part-fund additional consultancy support to ensure that scheme development continues whilst the business case is being assessed. The funding was for those elements of road pricing scheme development that were identified as most likely to delay the implementation of a full scheme.
23. We will continue to make funding available for such costs up to 2010/11. Application for and award of this additional funding will have no bearing on the decision on the overall business case. Authorities will not be disadvantaged should they choose not to apply, nor should authorities take this funding as any kind of endorsement or indication of ultimate success of the bid.
24. Promoting authorities should submit a case for additional funding alongside their full TIF Business Cases, or as soon as possible afterwards. We will expect promoters to have discussed likely funding requirements with the Department in advance of bid submission. Promoters who have already submitted business cases are also invited to apply.
Criteria
25. Bids will need to satisfy the following criteria:
a. We will only consider funding for road pricing elements of business cases or for progressing elements of the package that are critical to the delivery of the road pricing scheme.
b. At the time that a bid for additional development funding is made the package business case must be of sufficient detail and quality such that it is reasonable to expect a decision on whether to award programme entry could be made within a reasonable period, or there is a plan for the provision of additional information which would make a decision within that timescale reasonable.
c. The promoter will need to demonstrate that road pricing scheme development would continue, but that the implementation date for pricing would be at risk without additional support in this period.
d. The promoter will need to demonstrate how their workplan, in respect of the additional funding, would reduce the risk of delays to the pricing implementation date should the scheme go ahead.
e. The promoter will need to satisfy the Department that the consultancy support that they intend to engage is appropriate for the task and provides good value for money. Promoters may wish to discuss this with the Department in advance of submission.
Conditions and funding available
26. Bids will only be considered once a full business case for Programme Entry has been submitted to the Department. The Department will apply the above criteria in deciding whether or not a case has been made for additional funding. We would aim to make this decision within three to four weeks of submission of a bid for additional support, and then agree a work programme and funding profile.
27. The amount of funding that the Department would be prepared to make available will be based on an assessment of the extent of the further work needed to ensure that the implementation date is not put at risk. We would expect any funding to be, as a minimum, matched by local contributions.
28. All funds would be repayable to the Department should the promoter decide to withdraw their business case.
TIF Package Preparatory Costs
29. In addition to supporting scheme development through pump priming and development costs between business case submission and decision, the Department will also consider contributing to preparatory costs incurred between Programme Entry and Full Approval. We will apply the same eligibility criteria as for conventional Local Transport Major Schemes [2]
30. However, given the potential scale of these packages compared to conventional LTP Major Schemes, we will consider making some payments towards preparatory costs at specific agreed milestones between Programme Entry and Conditional Approval, rather than only at Conditional Approval. Payments would be made in arrears once the Department is satisfied that milestones have been met.
31. It is expected that any funding made available by the Department would be supplemented by a significant local contribution. The Department will make a decision on funding available following a Programme Entry decision.
[1]
http://www.dft.gov.uk/pgr/regional/tif/tifguidanceprogrammeentry
[2]
http://www.dft.gov.uk/pgr/regional/ltp/major/majorschemeguide/
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