Transport & energy infrastructure planning news, July 2018

On 25 June, the House of Commons voted in favour of the proposals for the expansion of Heathrow Airport set out in the Airports National Policy Statement (NPS). Following this, on 26 June Transport Secretary Chris Grayling formally designated the NPS.

The NPS sets out the Government’s policy on the need for extra airport capacity and infrastructure in the South East, and its preferred location and scheme for achieving this, which is a new north-west runway at Heathrow Airport.

The NPS will be used as the primary basis for decision making on development consent applications relating to the new runway at Heathrow, and will also be a material consideration when considering applications for extra runway capacity and infrastructure at other airports in the south east.

If the objectives of the NPS are delivered, Heathrow will see the construction of a runway at least 3,500m long, which will allow for a further 260,000 take-offs and landings each year.

It is understood that the next and formal stage of consultation ahead of the DCO application will take place later in 2018 at which time further information on possible impacts arising from the proposal will be made available for review. It has been suggested that construction of the runway could commence in 2021 with it being operational in 2026. 

In the build up to the vote, Transport Secretary Chris Grayling urged MPs to consider the positive impact that the expansion would have on the UK economy, opening up overseas markets, as well as creating thousands of new jobs within the UK. He also set out five pledges which would govern the future expansion:

• The scheme would be privately financed and come at no cost to taxpayers;
• It would provide significant boost to the economy, creating new international routes, more than 100,000 new jobs, doubled freight capacity and deliver benefits of up to £74 billion to passengers and the wider economy;
• It would bring wider benefits for the whole of the UK, with about 15% of new slots allocated for domestic routes, new rail links, and new global opportunities for regional business;
• Environmental protections would be built in, meeting existing air quality and climate change targets; and
• A legal protection on commitments, Heathrow’s pledges to be legally enforceable, with punishment of unlimited fines or grounded planes if broken.

Whilst the Commons voted 415 to 119, resulting in a majority of 296, the decision to expand Heathrow has faced significant opposition on a number of grounds, predominantly over costs, environmental concerns, and worries over the capacity of supporting infrastructure.

On the 7 June, the London Assembly agreed a motion asserting its opposition to the expansion of Heathrow Airport. Following the results of the vote, Chairman of the London Assembly, Tony Arbour AM, stated:

‘The London Assembly unanimously opposes the expansion of Heathrow airport on the grounds of air pollution, noise and the health impact it will have on Londoners. Together with the Mayor we shall seek to overturn this calamitous decision, which can only increase the environmental harm that the airport already creates.’

Opponents have a six-week window in which to challenge the decision through judicial review. The Mayor of London, Sadiq Khan, has already stated that he will join legal action brought by local councils against Heathrow Airport expansion.

 

On 13 June, the Automated and Electric Vehicles Bill completed its parliamentary passage through the House of Lords, following the conclusion of the Third Reading.

The measures set out in the Bill are intended to help deliver the Conservative Manifesto commitment for all road vehicles to be zero-emission by 2050. The only amendments agreed in the House of Lords were moved by Government.

The main measures to be brought through will enable the Government to make regulations regarding the provision of electric vehicle charging infrastructure and to require that charge points have ‘smart’ capability.

The Bill will complement proposed policies put forward in the draft revised National Planning Policy Framework, encouraging new developments to be designed to enable the charging of plug-in and low emission vehicles in safe and accessible locations.

Midlands Connect has unveiled its 20-year vision to relieve congestion on the region’s motorway network, proposing a range of measures which will improve the ‘Midlands Motorway Hub’.

The report sets out a range of measures aimed at harnessing the potential benefits an improved Midlands Motorway Hub could bring for the UK, including the creation of up to 50,000 new jobs and the construction of 50,000 new homes in the region.

The report identifies east-west connectivity as a major barrier to economic growth in the area. The strategy's key proposals include investigating the economic case for a Western Strategic Route linking M5/M6, widening the M42 from Junction 3A to Junction 7 and creating an A46 Expressway.

Improvements could transfer around 20% of the traffic travelling through the region away from the motorways, improving the economic performance of the Black Country, as well as connecting up to 45,000 new homes in proposed garden villages.

Highways England have announced plans to improve a 15 mile stretch of the M27, installing Smart signalling and signage between Southampton and Portsmouth.

The proposed plans are intended to improve capacity by a third along the stretch which is currently affected by significant traffic travelling along the south coast, improving safety, congestion and making journey times more reliable.

On 25 June, Business and Energy Secretary Greg Clark delivered an oral statement to Parliament announcing the UK Government decision not to progress the Swansea Bay tidal lagoon scheme.

The decision was taken based on the conclusions of the ‘value for money’ analysis for the proposed scheme, which were shared with the Welsh Government. The assessment highlighted how the Swansea Bay tidal lagoon would not meet the requirements for value for money and, therefore, the use of public funds to support it would not be justifiable.

The statement underlined how the proposed scheme would cost £1.3bn and it would provide ‘if successful to its maximum ambition’ around 0.15% of the annual electricity needed in the UK. On the other hand, Greg Clark highlighted how ‘[t]he same power generated by the lagoon, over 60 years, for £1.3bn, would cost around £400m for offshore wind even at today’s prices.’

In his Statement Greg Clark said:

‘Securing our energy needs into the future has to be done seriously and, when much cheaper alternatives exist, no individual project, and no particular technology, can proceed at any price. That is true for all technologies. The fact that this proposal has not demonstrated that it could be value for money does not mean that its potential is not recognised.’

Welsh Secretary Alun Cairns commented:

‘I realise the disappointment this decision may cause, but ultimately this project did not meet the threshold for taxpayer value. […] It’s important to stress that the issue here is specifically with the tidal lagoon application, not the concept of marine energy itself.’

Ministers have reached an initial agreement with the Japanese company Hitachi, to back the Wylfa Newydd nuclear power plant in Anglesey, North Wales. The company has developed proposals to build two new reactors with a combined capacity of 2.9GW.

Announcing the plans, Business and Energy Secretary Greg Clark MP stated that the National Audit Office and the Public Accounts Committee have recommended that the Government consider using an alternative financing model as to that used for Hinkley Point C to help reducing costs for consumers and taxpayers.

However, concerns were raised during the related Commons debate on nuclear power, with MPs questioning the Government’s commitment to renewable energy, claiming that funding for clean energy is at its lowest level since 2008.

 

A joint venture partnership between the public transport operator Keolis, the infrastructure management specialist Amey and Transport for Wales, will bring forward £5 billion of investment which will bring improvements to the Wales and Borders train services, as well as helping to fund the creation of the South Wales Metro.

The new contract includes measures to employ over 600 additional staff, a commitment to replace all trains by 2023, £194 million to modernise stations across Wales, and improvements to Sunday services which will be boosted by 61 per cent.

UK Rail Minister Jo Johnson commented:

‘This is a historic day for passengers because it puts more control of regional train services into local hands and benefits rail users on both sides of the border. We have worked closely with the Welsh Government to secure the best deal and the new franchise will bring extra services and record investment. We are also investing £125 million to establish a new metro service connecting towns and villages across South Wales.’

A £90million city region deal has been signed for Stirling and Clackmannanshire with the aim of stimulating economic investment and strengthening the regional economy. The Deal will comprise funding from both the UK and Scottish Governments, and is expected to create thousands of jobs throughout the 15 years of the plan and beyond.

Investment will focus on innovation and research, with the aim of improving business start-up and growth, helping companies develop and export their specialist expertise, whilst helping local people get the skills needed for the modern employment market.

Projects which will receive funding from the deal include the new Tartan Visitor Centre in Stirling, a new Aquaculture Innovation Hub, the creation of an International Environment Centre, as well as plans to release Ministry of Defence land at Forthside for new housing and business premises.

On 11 June, The Transport (Scotland) Bill was introduced before the Scottish Parliament. When enacted, the Bill will bring forward a range of measures aimed at improving Scotland’s transport network, making it cleaner and more efficient, as well as improving accessibility.

Measures proposed in the Bill include: providing local authorities and Regional Transport Partnerships (RTPs) with greater flexibility to improve local bus services through partnership working with operators, or running services themselves; giving local authorities greater powers to create low-emission zones and tackle problems with double parking and parking on pavements; as well as allowing RTPs to build up and carry appropriate reserves.

On 11 June, at the launch of the 2018 London Tech Week, Mayor of London, Sadiq Khan presented a new city-wide initiative aimed at making London the world’s ‘smartest city’, and helping secure the capital’s global position as a leading tech hub.

The Mayor took the opportunity to reveal his new report, ‘Smarter London Together’, which will act as a flexible digital masterplan for the city. The report sets out a range of proposals that aim to boost user-centred design, data-sharing, infrastructure, skills and collaboration within the capital.

The Mayor’s plans include proposing planning powers for full fibre connectivity to all new homes, as well as working alongside Transport for London (TfL) and councils to roll out 4G using public buildings and existing physical infrastructure. The roadmap also includes plans to commission a new generation of smart technology, such as lamp posts incorporating air quality sensors, publicly-accessible wifi and electric vehicle charging points).

Sadiq Khan commented;

‘As one of the world’s leading technology hubs, we need to be bold and think big, to experiment and try things out that have not been done elsewhere. I see London’s future as a global ‘test-bed city’ for civic innovation, where the best ideas are developed, amplified and scaled.’