Cabinet Meeting on Wednesday 17 December 2014

A50 Growth Corridor

Mark Winnington, Cabinet Member for Economy and Infrastructure said:

“This major investment in the A50 Growth Corridor will support new jobs, ease congestion, cut journey times and improve road safety along one of the key trunk routes between the East and West Midlands.

“Improving roads and other infrastructure to keep goods and people on the move is vital as we strive to improve Staffordshire’s economy, creating a connected county where businesses are attracted to invest and grow. Ultimately that means more jobs and prosperity for local people.

“Major manufacturers line the A50 and it is heavily used by hundreds of thousands of visitors to Alton Towers, one of the UK’s top tourist attractions, but it has long been blighted by bottlenecks around Uttoxeter.

“The projects are working at pace, in close partnership with the Highways Agency and East Staffordshire Borough Council, and in consultation with Andrew Griffiths MP, to deliver these improvements to Uttoxeter, which will have substantial benefits for the whole Staffordshire economy.”

Report Summary:

In December 2013, the Government announced a major infrastructure investment to significantly upgrade the A50(T) corridor, to support economic and residential growth in the area, and to deal with congestion and safety problems. These projects are funded by Government, with a contribution from local developers and are being delivered by Staffordshire County Council on behalf of the Department for Transport (DfT). The DfT’s interests are managed by the Highways Agency (HA). This report provides an update on progress to deliver the project.

Recommendation

I recommend that:

a. Cabinet reviews progress on the two A50 Growth Corridor projects in May 2015.

Local Members Interest

Philip Atkins East Staffordshire - Uttoxeter Rural

Geoff Morrison East Staffordshire - Uttoxeter Town

Cabinet – 17 December 2014

A50 Growth Corridor

Recommendations of the Cabinet Member for Economy, Environment & Transport

a. That Cabinet reviews progress on the two A50 Growth Corridor projects in May 2015.

Report of the Director for Place and Deputy Chief Executive

Reasons for Recommendations:

1. That Cabinet, in ensuring due diligence of the A50 Growth Corridor projects, should continue to review progress on a regular basis.

Background

2. Proposals to improve the A50(T) in Uttoxeter were announced by the Government as part of the National Infrastructure Plan and the Autumn Statement in December 2013. These improvements are in response to existing and forecasted congestion on the A50(T) in Uttoxeter, safety concerns and emerging proposals for residential and business growth in and around the town.

3. The A50(T) is a trunk road managed by the Highways Agency (HA), an executive agency of the Department for Transport (DfT). The management of the A50(T) is sub-contracted by the HA to Connect Roads, a subsidiary of Balfour Beatty. The HA has appointed the County Council to be their ‘delivery partner’ for the projects.

4. The A50 Growth Corridor investment works are being delivered through two separate and discrete projects. Project A, the first project, will deliver a grade-separated junction on the A50(T) to the West of Uttoxeter, providing improved access to a new housing and employment site to the south of the A50(T), and the existing and new JCB factories to the north of the A50(T). Project B will likely involve the reconfiguration of the existing Dove Way bridge over the A50(T) to the East of Uttoxeter, by converting it to a grade-separated junction. This second project may also involve closing the two ‘at grade’ roundabouts on the A50(T) in the Uttoxeter area.

5. Cabinet agreed to the initiation and delivery of the A50 Growth Corridor projects on 19 March 2014. This report complies with a resolution by Cabinet that an update report be provided.

Progress Report - Project A

6. Design. The design for Project A was the subject of a public engagement and consultation in February and March 2014. Feedback from the consultation exercise was evaluated and several changes made to the design, which was reviewed by the HA in October 2014. The final design is at Appendix 1.

7. Planning. A planning application for Project A was submitted to the County Council by the project team in June 2014. The County Council, as the Planning Authority for the works, consented to the construction of Project A on 6 November 2014 (under Regulation 3 of the Town and Country Planning General Regulations 1992).

8. Land Acquisition. The Council, on behalf of the HA, needs to acquire significant parcels of third party land, upon which to construct the highway works. The process of acquiring this land has started, with the District Valuer Service employed to support this work. The acquisition strategy is to ‘twin track’ the purchase of all the land needed. Firstly, to seek to acquire the land and rights by negotiation and agreement. This approach is ongoing. However, at the same time the County Council has made a Compulsory Purchase Order (“CPO”) covering all the lands to be acquired, under Part XII of the Highways Act 1980 and the Acquisition of Land Act 1981, to ensure that any land that cannot be acquired by agreement can be acquired compulsorily. The CPO was accompanied by a Side Roads Order and a Slip Roads Order. Statutory objections were received in respect of these orders. Consequently a Public Inquiry will be required to confirm the acquisition of land required, unless the objections are withdrawn in advance.

9. Finance. The total cost of delivering Project A is estimated to be £34m. This will cover all the anticipated costs of civil engineering works, land acquisition, compensation, internal and external professional fees, and other incidental costs. This funding has been approved and the County Council has entered into a legal agreement (“Funding Agreement”) with the Highways Agency, which authorises the County Council to carry out the highways works and allows for the recovery of all appropriate costs. The finance model includes a contribution from local developers and employers, the total value of which is under negotiation.

10. Procurement. The County Council’s construction partner for the civil engineering works is a joint venture between Carillion and LaFarge Tarmac, who were procured via the Midlands Highways Alliance framework contract (Medium Schemes Framework 2). Early contractor involvement has commenced and target costs, delivery plans and a contract are being prepared. Authority for signing the contract with the Carillion and LaFarge Tarmac alliance will be made under a delegated decision by the Cabinet Member for Economy and Infrastructure, in conjunction with the Director of Democracy, Law and Transformation.

11. Business Development. It is expected that the projects will support the development of some 7,500 jobs in Uttoxeter, by improving access to the A50(T) for local businesses and making the town a more attractive place for businesses to locate. The Make It Stoke-on-Trent & Staffordshire Inward Investment Service is working on behalf of the County Council and Stoke-on-Trent City Council to maximise the opportunities to attract investment to the area.

12. Timetable. Construction of Project A will be commissioned as soon as the relevant third party land has been acquired. This is expected to be in Summer 2015, with the build time estimated to be 9 to 12 months.

Progress Report - Project B

13. Project B will be built second, and will take significantly longer to commission than the western junction. The acquisition of third party land is likely to be relatively complicated and lengthy due to the number of parcels of land to be acquired and the nature of the occupiers. In addition the effect on traffic flows around Uttoxeter Town will need to be examined. Whilst an early indicative design for Project B was previewed during the Project A public consultation, the preferred design option has not yet been selected. To inform this decision, the design team has commissioned a detailed traffic model of the town, which was completed in November 2014. Work has now started on producing an options appraisal for Project B, which will be subject to an extensive public consultation exercise in early 2015. Once a design option has been selected, a planning application will be submitted and the process of land acquisition started. Concurrently, the County Council will enter into a further Funding Agreement with the Highways Agency for Project B. As with Project A, there will be a period of time that, prior to the finalisation of the Agreement, the County Council will be incurring expenditure, primarily on fees, at risk; although it is anticipated that the Agreement will be under the basis of full cost recovery and include recovery of all County Council expenditure incurred on the project up to that point. In the meantime, opportunities to minimise risk are being explored with the Highways Agency.

Appendices:

1. Project A – Design Drawing.

List of Background Documents: None

Report Commissioner: Steve Burrows

Job Title: Commissioner for Business and the Enterprise County

Telephone Number: 01785 277204

Email: steve.burrows@staffordshire.gov.uk

APPENDIX 1PROJECT A – DESIGN DRAWING

APPENDIX 1

PROJECT A

DESIGN

Summary of Community Impact Assessment (including a Health Impact Assessment if applicable) for A50 Growth Corridor

Impact Assessment

SCC’s Priority Outcomes & Impact Areas

Impact: (positive / neutral / negative)

Provide brief detail of impact

Prosperity, knowledge, skills, aspirations

Positive Increased opportunity for employment at all ability levels.

Living safely Positive The proposals will improve road safety on the A50.

Supporting vulnerable people Neutral

Supporting healthier living Neutral

Highways and transport networks

Positive The A50 projects will significantly improve the highway network in and around Uttoxeter.

Learning, education and culture Positive The considerable number of new jobs available will provide in work learning and development opportunities for many more local people.

Children and young people Positive The considerable number of new jobs available will provide many new opportunities for young people. It will help to raise aspirations, and provide direction for young people’s learning, development and career choices.

Citizens and decision making, improved community involvement

Neutral

Physical environment including climate change

Neutral

Maximisation of use of community property portfolio

Neutral

Equalities Impact Impact: (positive / neutral / negative)

Provide brief detail of impact

Age Positive

Disability Positive

Ethnicity Positive

Gender Positive

Religion / Belief Positive

Sexuality Positive

The considerable number of new jobs should create employment opportunities for all people seeking work regardless of personal circumstances.

Impact / Implications

Resource and value for money (in consultation with finance representatives)

The cost of these projects is estimated to be in the order of £80m. The County Council are not making a financial contribution to the projects and will recover all costs incurred.

Risks identified and mitigation offered (see corporate risk register categorisation)

The principle of full cost recovery has been acknowledged by the Highways Agency / Department of Transport and will be incorporated into appropriate Funding Agreements which are currently being progressed. In advance of those agreements being formally signed, costs are being incurred in respect of fees and may need to be spent upfront in order to purchase land required to deliver the projects. Although it is understood that these costs incurred in advance will all be recoverable, it should be noted that such expenditure is ‘at risk’ until such time that the Agreements have been finalised.

There is always a risk that we could lose at a Public Inquiry, although it is anticipated that this risk will be mitigated by negotiation with landowners to acquire land and withdrawal of the objection.

Legal imperative to change if applicable (in consultation with legal representative)

As set out in the Report.

Report Commissioner: Steve Burrows