Agenda item

1.          That the 15-year Highway and Transport Asset Management Strategy, as set out in Annex 1 to the submitted report, be approved.

2.         That the revised allocation of capital budgets from 2017 onwards as outlined in paragraph 20 of the submitted report, be approved.

3.         That minor future amendments to the strategy, within the overall resource allocation, can be made by the Strategic Director of Environment and Infrastructure, in consultation with the Cabinet Member for Highways, Transport and Flooding.

Reasons for Decisions:

To ensure that we manage our assets effectively with the resources available, and that this is aligned to our business plan, delivers the councils corporate goals, and reflects national best practice.

The success of Operation Horizon to reduce the length of the network in need of structural repair to 12%  means we can now rebalance investment across the different asset types to achieve the best outcomes for Surrey over the next 15 years. 

To enable us to demonstrate to the Department for Transport (DfT) that we have embedded asset management principles into our core policies and procedures. This will help deliver value for money and ensure our DfT funding allocations are not reduced unnecessarily.

[The decision on this item may be called in by the Economic Prosperity, Environment and Highways Scrutiny Board]

The Cabinet Member for Highways, Transport and Flooding introduced the report, stating that Surrey was one of the first authorities to develop an Asset Management Plan in 2005 (STAMP) and that it was refreshed in 2014 and now must be revised again so that it was in line with best practice.

He said that the Department of Transport (DfT) had introduced changes to the way they fund local highway authorities (the ‘Incentive Element’), which meant that those who are not applying sound asset management principles would receive a 15.5% reduction in highway maintenance funding by 2021. In terms of the funding Surrey received, this would mean a reduction in funding of £4.3 million over this period if the Council could not demonstrate that an effective approach was not being applied.

Operation Horizon was forecast to reduce the length of Surrey’s road network that were in need of structural repair from 17% in 2013 to 12% in 2018. As a result of the success of this programme, the Council’s depreciation modelling indicated that over the next 15 years levels of investment between roads and other assets should be rebalanced to achieve the greatest overall benefits for Surrey in the long-term.

He informed Cabinet that in developing the revised Strategy, there had been consultation with Members to determine their priorities using a tool called ‘You Choose’. He also drew attention to the risk management and implications, as set out in paragraph 12 – 15 of the submitted report and also tabled a revised last sentence for paragraph 15, as detailed:

‘The delivery of the strategy may be at risk to varying degrees, in the event that any/all of the above becomes an If any/all of these risks materialise, unless additional funding is provided by central government and/or the council, the programmes of work described in paragraph 9 would be reviewed.’

And also a revised recommendation 3, with additional wording in Bold and Italics:

‘Agrees that minor future amendments to the strategy, within the overall resource allocation, can be made by the Strategic Director of Environment and Infrastructure in consultation with the Cabinet Member for Highways, Transport and Flooding.’

Finally, he commended the approval of a new 15-year Highways and Transport Asset Management Strategy to Cabinet.

Other Cabinet Members considered that the Highway and Transport Asset Management Strategy was a helpful document which clearly set out the Council’s priorities and strategic goals for the highways network.

The Leader of the Council was pleased to report that the maintenance backlog had reduced over the last five years and also that the communication process with residents had improved over this period, since Project Horizon had taken place.

RESOLVED (as amended):

1.          That the 15-year Highway and Transport Asset Management Strategy, as set out in Annex 1 to the submitted report, be approved.

2.         That the revised allocation of capital budgets from 2017 onwards as outlined in paragraph 20 of the submitted report, be approved.

3.         That minor future amendments to the strategy, within the overall resource allocation, can be made by the Strategic Director of Environment and Infrastructure, in consultation with the Cabinet Member for Highways, Transport and Flooding.

Reasons for Decisions:

To ensure that we manage our assets effectively with the resources available, and that this is aligned to our business plan, delivers the councils corporate goals, and reflects national best practice.

The success of Operation Horizon to reduce the length of the network in need of structural repair to 12%  means we can now rebalance investment across the different asset types to achieve the best outcomes for Surrey over the next 15 years. 

To enable us to demonstrate to the Department for Transport (DfT) that we have embedded asset management principles into our core policies and procedures. This will help deliver value for money and ensure our DfT funding allocations are not reduced unnecessarily.