Capital: The Highways and Traffic Management capital budget is set by adopting an asset based approach.
This involves a systematic strategic review looking at:
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.