The second round of consultation on the funding assistance rates review will help shape our decisions
We’ve started our second round of engagement with local authorities on the best way to implement the provisional funding assistance rates framework developed as part of a review into the funding assistance rates system.
The funding assistance rate is the proportion of costs of a land transport activity undertaken by a local authority (or other approved organisation) that is paid from the National Land Transport Fund.
The ‘Funding assistance rates (FAR) review Options Discussion Document (external link) ’ seeks councils’ and other stakeholders’ views about the framework, the factors that will determine approved organisations’ funding assistance rates, any trade-offs that will need to be made, and how the components should fit together.
It also sets out how funding assistance rates fit within the wider set of tools we use to make planning and investment decisions for our transport network. The discussion document emphasises the principles around ensuring we invest optimally across the whole of the transport network rather than taking a district-by-district approach, and needing to find the appropriate way to split the costs between road users and land owners.
It presents five options for how councils’ funding assistance rates could be set, with an invitation to suggest other options. Each option uses different metrics (index of deprivation, capital value of rateable land, number of rating assessments and lane kilometres of local roads), or combinations of those metrics, as proxies for councils’ ability to raise the local share of land transport activities. Councils are grouped into possible funding assistance rates bands and the document provides two sets of indicative funding assistance rates for each council under each option (one at each end of the possible overall co-investment rate range from 50 percent to 53 percent).
The document also seeks feedback on:
Jenny Chetwynd, steering committee chairperson says: “Over the next couple of months, we’ll be talking with councils and other stakeholders about the issues, as well as encouraging them to talk to each other. Ideally we want them to work through potential options with each other and us as that will help us make the best possible decision.”
The closing date for submissions is Monday 3 March 2014.
About the funding assistance rates review
The review into the funding assistance rates system was set up to:
You can find out more about the review on the Transport Agency’s website. (external link)