Transport

As part of its work in support of the second National Infrastructure Assessment, to be published in 2023, the Commission is undertaking two projects looking at key challenges linked to the question of how transport infrastructure can better support the levelling up economic opportunities across different regions in England. These are:

• Challenge 8: Urban mobility and congestion – the Commission will examine how the development of at scale mass transit systems can support productivity in cities and city regions and consider the role of congestion charging and other demand management measures
• Challenge 9: Interurban transport across modes – the Commission will consider relative priorities and long term investment needs, including the role of new technologies, as part of a strategic multimodal transport plan.

More information about these challenges can be found in the Baseline Report.

As part of Challenge 8, in June 2022 we published Getting cities moving, which says getting more people making more trips into and around city centres is essential for English cities outside of London to have any chance of succeeding in levelling up their regional economies. To do that, in the face of post-pandemic uncertainty about transport demand, cities will need flexible strategic transport plans that can adapt to a range of future transport demand scenarios. And to avoid adding to already congested roads and undermining their efforts to meet net zero targets, they’ll need to actively shift more of those additional journeys from cars to other modes of transport. This interim report will inform the final recommendations the Commission makes to government on urban transport, as part of our second National Infrastructure Assessment in the second half of 2023.

Many of our larger towns and cities face significant challenges from traffic congestion, which can inhibit their economic development and reduce quality of life for people who live and work in them. It’s important that government and cities take action to ensure that space in cities is used effectively through investing in fast, frequent public transport systems. But this requires a new approach to how urban transport is planned and funded.

That’s why the Commission believes metro mayors and other city leaders need more devolved powers to enable them to better develop integrated strategies for transport, employment and housing; to be effective, these powers should be backed up by stable funding plans that enable more confident in long term planning.

In its newest study, the Commission is looking specifically at how to maximise the regeneration and levelling up benefits of infrastructure policy and investment for towns and suburban areas in England outside of its major cities, focusing particularly on transport and digital infrastructure.

Achieving net zero greenhouse gas emissions means helping drivers transition away from petrol/diesel engines – which account for a quarter of UK emissions – and towards electric vehicles (EVs). EVs are an increasingly familiar sight on roads and offer real benefits for drivers and the environment, and the government has committed to the phasing out of the sale of new petrol and diesel cars to encourage drivers to make the switch

A rapid transition to EVs needs the right infrastructure support. The National Infrastructure Assessment in 2018 explored how to give drivers the confidence they need to switch to an electric vehicle.

A national rapid-charging network – focused initially in harder-to-reach areas – is crucial, and the government has committed £1.3bn to kick start electric vehicle charging infrastructure. Allocating more council parking spaces to charge points, and increasing investment in a smarter electricity network to support innovations like smart charging are also important steps.

In March 2022 the Government published its Electric Vehicle (EV) Infrastructure Strategy, committing to 300,000 operational public chargepoints by 2030.

The Commission welcomed the strategy as a “promising package of measures”, but also highlighted the need to focus on delivery, to encourage drivers to make the switch ahead of the 2030 band on sales of new diesel and petrol cars and vanes.

Construction has started on HS2, the new high speed rail line connecting London, the Midlands and the North. The government is developing an integrated rail plan, one aim of which is to ensure that Phase 2b of HS2 and other major rail investments, such as Northern Powerhouse Rail and the Midlands Rai Hub, are scoped, phased and sequenced effectively to deliver the greatest benefits to passengers and businesses.

The Commission’s role has been to make its own independent assessment of the rail needs of the Midlands and the North, that helps inform this plan.

Published in December 2020, our final report proposed a menu of options for a programme of rail investments in the Midlands and the North, using three different illustrative budget options. The government’s subsequent Integrated Rail Plan, published in November 2021, set out its intention to take an adaptive approach to future rail investment in these regions through a core pipeline of investment, aiming to speed up delivery of benefits for communities and businesses; this was in line with the approached recommended by the Commission in the Rail Needs Assessment.

Freight is essential to modern life. Increases in just-in-time manufacturing processes and the popularity of online shopping mean the UK freight sector is set to grow considerably.

1.6 billion tonnes of goods are currently moved around the UK each year, and over the next 30 years demand for heavy and light freight transport is expected to increase significantly. This has major implications for how emissions and urban congestion are tackled: projections suggest road and rail freight might contribute as much as 20 per cent of the UK’s greenhouse gas emissions by 2050, if action is not taken.

The Commission has recommended new diesel HGV sales end by 2040 as part of efforts to help freight become carbon-free by 2050. Freight logistics must also be considered earlier in the planning system, to ensure infrastructure and better design solutions are available to reduce congestion.

Over the next thirty years, cars and vans will become increasingly autonomous. Connected digitally to other vehicles and roadside infrastructure, they offer the potential to improve road safety, increase efficiency and improve accessibility to transportation. Future investment in our roads therefore needs to harness the new technologies being developed in this field to enhance our roads, streets, and places.

The impacts of technology associated with Connected and Autonomous Vehicles (CAVs for short) needs to be comprehensively understood. Our National Infrastructure Assessment in 2018 recommended that government must account for the potential impacts of CAVs in its future road investment plans. The Commission also ran a competition that year to encourage innovative projects which might help prepare our roads for the advent of CAVs.

London’s transport systems have been under increasing pressure from growth. New areas in and around London for housing need to be found to meet projected population growth which has been forecast to grow to 10 million people by 2030. In 2016 the Commission reviewed the strategic case for additional large scale transport infrastructure and, in particular, made proposals for a new north-east to south-west ‘Crossrail 2’ line and a clear strategic case for Crossrail 2 to happen.

While it is difficult to predict the long term impact of the pandemic on patterns of public transport use in London, continued delay in making big strategic decisions risks constraining economic growth in the future.

In 2016 the Commission looked at the strategic transport imperatives for the north of England and found there was a clear need for a ‘transformation’ in transport connectivity. It takes longer to get from Liverpool to Hull by train than it takes to travel twice the distance from London to Paris. Manchester and Leeds are less than 40 miles apart and yet on the congested M62 this often takes more than two hours by car.

Our study recommended immediate and longer term improvements, including an east-west high speed link, integrated with HS2, and significant funding to improve the M62 and other key road corridors crucial to the region’s economy. A number of these recommendations were considered as part of the Commission’s Rail Needs Assessment, the final report of which was published in December 2020 and will inform the government’s Integrated Rail Plan.

Government should commit to decarbonising road freight by 2050, announcing plans by the end of 2021 to ban the sale of new diesel powered HGVs no later than 2040. To support this:

• government should, in conjunction with distribution and transmission network operators, prepare detailed assessments of the infrastructure required to enable the uptake of battery electric or hydrogen HGVs, including the refuelling requirements at depots and key rest areas on major freight routes. For battery electric, these assessments should include enhancements to distribution networks alongside alternatives to reinforcement, such as energy storage. For hydrogen, these assessments should cover the production, storage and distribution of hydrogen, including any dependency with the decarbonisation of the heating supply system.
•  Ofgem, as part of the next energy distribution price review (RIIO‑ED2) starting in 2023, should include a clear requirement for distribution network operators (in partnership with the freight industry) to map out the infrastructure upgrades and opportunities for alternative solutions, such as energy storage, required to enable large scale freight van charging at depots.

Government should undertake detailed cross‑modal analysis, using a corridor‑based approach, of the long term options for rail freight’s transition to zero emissions, including low carbon rail services and the scope for road based alternatives. It should then publish, by the end of 2021, a full strategy for rail freight to reach zero emissions by 2050, specifying the investments and/or subsidies that it will provide to get there.

To help manage peak time congestion on the urban transport network, local authorities should include a plan for urban freight within the infrastructure strategies they are developing. These plans should review local regulations to incentivise low congestion operations, consider the case for investments in infrastructure such as consolidation centres, and identify the land and regulatory requirements of new and innovative low congestion initiatives.

Government should produce new planning practice guidance on freight for strategic policy making authorities. The guidance should better support these authorities in planning for efficient freight networks to service homes and businesses as part of their plan making processes. This new planning practice guidance, which should be prepared by the end of 2020, should give further detail on appropriate considerations when planning for freight, such as the need to:

• provide and protect sufficient land/floorspace for storage and distribution activities on the basis of population and economic need, with particular consideration for the floorspace requirements for last mile distribution and consolidation centres;
• support the clustering of related activities within a supply chain, minimising the distance that goods must be moved and maximising the potential for efficient operations;
• maximise the potential for freight trips to be made at off peak times; and
• accommodate deliveries and servicing activity at the point of delivery.

Government should develop a data standard for freight data collection to support local authorities, outlining the requirements for technological capability, data requirements, and data format. Such a standard must seek to ensure consistent data quality and format across technologies to allow regional and national aggregation, and should be complete by the end of 2020.

Government should establish a new bi‑annual ‘Freight Leadership Council’, inviting representatives from BEIS, DfT, MHCLG, DEFRA and HM Treasury, devolved administrations, all freight modes and parts of the supply chain. This Council’s main focus should be on strategic, long term issues – specifically supporting decarbonisation of road and rail freight by 2050. This Council should hold its first meeting before the end of 2020.

The Commission recommends that government, Ofgem and local authorities should enable the roll out of charging infrastructure sufficient to allow consumer demand to reach close to 100 per cent electric new car and van sales by 2030. Government should address the implications of technological innovation in long term transport planning processes, including the next rail control period and road investment strategy.

• Ofgem should take on the role of regulating the interaction between electric vehicle charge points and the electricity network immediately, ensuring that electric vehicle charging and vehicle to grid services contribute to the optimisation of the energy system. Government, industry and Ofgem should work together to set minimum standards for a network of interoperable, smart charge points
• Ofgem should commission electricity network operators to work with charge point providers to identify potential anticipatory investments required to accommodate public charging infrastructure. Opportunities for investment within the current price control period should be identified by Summer 2019
• Government should place a requirement on local authorities to work with charge point providers to allocate 5 per cent of their parking spaces (including on-street) by 2020 and 20 per cent by 2025 which may be converted to electric vehicle charge points
• Government should subsidise, by 2022, the provision of rapid charge points in rural and remote areas, where the market will not deliver in the short term
• Government should establish a centre for advanced transport technology in the Department for Transport to bring together work on technological innovation and ensure its implications are central to future investment proposals. This should include developing and overseeing the Commission’s proposed connected and autonomous vehicles framework.

The Commission recommends that government should make £500 million a year of funding available from 2025/26 to 2034/35 for local highways authorities to address the local road maintenance backlog.

The Commission recommends that cities should have the powers and funding they need to pursue ambitious, integrated strategies for transport, employment and housing.

• By 2021, metro mayors and city leaders should develop and implement long term integrated strategies for transport, employment and housing that will support growth in their cities.
• By 2021, government should ensure city leaders have the right powers to deliver these integrated strategies, including the power for metro mayors to make decisions on major housing development sites.
• Government should set out devolved infrastructure budgets for individual cities for locally determined urban transport priorities in line with the funding profile set out by the Commission. Budgets for 2021-2026 should be confirmed by mid 2019. Government should pass legislation, by 2020, requiring cities to be given regular five year infrastructure budgets.
• Government should allocate significant long term funding for major capacity upgrades in selected growth priority cities, in line with the funding profile set out by the Commission. Cities benefiting from major projects should make commitments on housing delivery and provide at least 25 per cent of funding. Priority cities should be identified by mid 2019, with long term investment commitments agreed by 2020. Future rounds should take place no more than twice a parliament.

• 1a: Government should progress work on East West Rail, the Expressway and new settlements through a single co-ordinated delivery programme, with cross-government ministerial commitment and oversight. The aim of this programme should be to unlock opportunities for transformational housing growth through the creation of well-connected new communities. As part of this programme Government should commit:
  • £1bn to deliver the infrastructure necessary for a high quality and resilient rail commuter service between Bicester and Bedford, accelerating delivery of this section of East West Rail to a target date of 2023;
  • to accelerate work on the development of the new East West Rail line between Bedford and Cambridge, and commit to open the line by 2030; and
  • to deliver the ‘missing link’ of the Oxford-Cambridge Expressway, accelerating development work to deliver a clearly-defined and agreed route by 2025, enabling construction to begin as part of the next Road Investment Strategy (RIS 2) and be complete by 2030.
• Key milestones and decision points in the development of East West Rail and the Expressway should be subject to “in principle” agreement to the development of significantly more ambitious proposals for housing growth in the arc, including major new settlements and urban extensions, and subsequently, progress in identifying, evaluating and designating sites. “In principle” agreement should be provided within 12 months. The schemes should be futureproofed to ensure the potential for expansion and improvement is not permanently and prematurely closed.
• 1b: Government should seek to introduce fast, direct services to London to enable growth in the arc between Bicester and Bletchley and improve connectivity between London and Aylesbury. Any such improvements should be contingent on local authorities’ commitment to major development between Bicester and Bletchley and around existing settlements.
• 1c: Government should work with the private sector and the relevant local authorities to agree funding packages and progress schemes to support housing and employment growth now. These should include:
  • essential works required to enable passenger services between Oxford and Cowley no later than 2019
  • the acceleration of East West Rail phase 3 works around south Cambridge to enable the deliver of a Cambridge South station in 2022 as part of Control Period 6.
• Substantial private sector and local contributions, reflecting the benefits that these parties gain, will be required to enable the delivery of these schemes.

• Government should work with local authorities to put in place an independent design panel for East West Rail, the Expressway and new and expanded settlements across the arc by April 2018. This panel should work in concert with existing infrastructure design panels and new development corporations to specify, scrutinise and challenge settlement designs, plans and delivery, with a view to:
  • making most efficient use of new and existing infrastructure (including transport and utilities)
  • supporting positive social outcomes (including better mental and physical health)
  • achieving net gains in biodiversity and natural capital across the arc
  • improving quality of life for existing and future residents
• Government should establish arrangements for the long-term stewardship of valued community assets in each new or expanded settlement, placing responsibility and resources in the hands of the community – learning from both the Parks Trust in Milton Keynes and the Letchworth Garden City Heritage Foundation
• It should ensure that strategic infrastructure, including new elements of East West Rail and the Oxford-Cambridge Expressway, are planned and developed to achieve net gains in biodiversity and natural capital across the arc.

• Our motorways must have mobile telecommunication networks fit for the future. It is vital that our motorways are able to meet both the long term operational needs of connected vehicles and the connectivity needs of the passengers. This will necessitate the timely installation of an open and accessible mobile telecommunication and backhaul network that is fit for the future.
• The government should set out its plans for how to deliver this by the end of 2017. As part of this work consideration should be given to who is best placed to install, manage, fund and own the network, noting the potential for private sector funding.
• Ensuring that best use is made of the existing infrastructure, such as masts, poles, ducts power supplies and the fibre network alongside our motorways, so that it can be used to support the backhaul of mobile data will be essential.
• Ultimately, the government should ensure that the necessary infrastructure is in place on motorways by 2025 at the latest if it wants to offer a reasonable level of connectivity on a timescale consistent with the deployment of 5G networks.
• Ofcom should set out how a regulatory regime would support these different operating models.

• Rail passengers should have high capacity wireless connectivity. This should be achieved through a delivery model that utilises trackside infrastructure to provide an open and accessible mobile telecommunication and backhaul network that is fit for the future.
• The government should set out its plans for how to deliver this by the end of 2017. As part of this work consideration should be given to who is best placed to install, manage, fund and own the network, noting the potential for private sector funding.
• Ensuring that best use is made of the existing infrastructure, such as masts, poles, ducts power supplies and the fibre network alongside our railways so that it can be used to support the backhaul of mobile data will be essential. Ultimately, the government should ensure that the necessary infrastructure is in place on the main rail and key commuter routes by 2025 at the latest if it wants to offer a reasonable level of connectivity on a timescale consistent with the deployment of 5G networks.
• Ofcom should set out how a regulatory regime would support these different operating models.

Improving connectivity between the cities of the North will not be sufficient to create the northern powerhouse, but is necessary. Transformations in transport connectivity should form part of a broader strategy incorporating improvements in education, workforce training, research and innovation, spatial planning and wider infrastructure investment.