Source · Select Committees · Transport Committee

Recommendation 7

7 Accepted

Two-year guarantee for street works reinstatements proves inadequate given local authority budget constraints.

Conclusion
Local authority budgets for road maintenance are stretched thin; they can ill afford the expense of making good reinstatements which are not up to scratch. We note the concern about increasing costs being reflected in utility bills, but there is a balance to be struck: good quality road and pavement surfaces are also in consumers’ interests. A two-year guarantee for a publicly-maintained asset is inadequate, especially since reinstatements which meet the standards tend to last more than ten years. (Conclusion, Paragraph 37)
Government Response Summary
The government highlights existing legal frameworks that allow permit scheme fee discounts to incentivise efficient street works and early completion. It commits to engaging with highway authorities to understand how these powers are being used, identify any implementation barriers, and determine if further guidance amendments are needed to ensure consistent and effective use of fee incentives.
Government Response Accepted
HM Government Accepted
We welcome the Committee’s interest in exploring how permit scheme fees can further incentivise efficient working practices. The current legal framework already permits authorities to offer fee discounts for early completion or other efficiency measures. Maximum fees for permits are set out regulation 30 of the Traffic Management Permit Scheme (England) Regulations 2007 (S.I. 2007/3372) (the permit regulations) and in statutory guidance (Permit scheme guidance) and vary according to the type of permit and road. Regulation 30(3A) of the permit regulations requires permit schemes to include discounts for where works on traffic-sensitive streets are carried out outside of the busiest times. Further, regulations 31(1), 31(2) and 31(3) prescribe limited circumstances when no fee is payable or a fee discount applies, and regulation 30 states that permit schemes must include circumstances when fees may be discounted (this may include a discount in a specified circumstance or a range of discounts with criteria for determining their application). As set out at page 33 of the statutory guidance, authorities are encouraged to offer a range of discounts, within their permit schemes, to reward behaviour change and reduce disruption to the travelling public. Schemes may set out specific circumstances in which the authority will always waive or reduce fees, such as when methods are used to speed up the work. It is important to note that permit fees must be charged on a cost recovery basis ensuring that they reflect the actual administrative costs incurred by the authority and cannot be used as a penalty for late or overrunning works. The current framework already differentiates between the scale of works with major works attract higher permit fees than standard or minor works, reflecting the greater complexity and potential disruption involved. Additionally, Lane Rental schemes which can be operated by authorities with approval (where they already have permit schemes in place), are designed to minimise disruption and congestion by incentivising undertakers to carry out works outside of the busiest times on traffic-sensitive roads and to carry out works on different locations. We will engage with highway authorities to understand how these existing powers are being used in practice, and if not, why not. This engagement will help identify any barriers to implementation and whether further amendments to guidance are required to ensure that the scope for fees to incentivise early completion of works is being used consistently and effectively across the sector.