Capital: The Highways and Traffic Management capital budget is set by adopting an asset based approach.
This involves a systematic strategic review looking at:
- highway condition data and other intelligence, such as customer feedback
- spending requirements for each asset group, such as bridges, main road network, drainage, street lighting etc., are then determined
- taking a long term approach to provide
optimal use of the funding available.
Progress against asset condition targets is annually reviewed and will inform the next year of funding allocation.
Revenue: The overall Highways revenue budget is set based on the previous year’s allocation, plus inflation and service pressures, and is reduced by savings agreed as a result of the reduction in government funding. Once the overall total has been determined, individual budget line allocations are calculated, based on the Highway Asset Management Plan and taking account of factors such as specific savings, pressures, the condition of the asset and maintenance priorities. For weather dependent activities such as winter maintenance and emergencies, budget allocations are based on an average of the previous 5 years expenditure.