Purpose

To consider the report of the Cabinet Member
for Transport seeking approval for the Lane Rental
Scheme.

Decision

(i) 
To approve the Lane Rental Scheme application to the DfT for their
review, following the public consultation on the revised Lane
Rental Network for the city’s roads.
(ii) 
Subject to the outcome of the application to the DfT, delegate to
authority to the Director of Transport & Planning to do
anything necessary to implement the approved Lane Rental scheme.
Its introduction would be as per Section 74A of the New Roads and
Street Works Act 1991 and in pursuance of its Network Management
Duty as set out in the Traffic Management Act 2004.

Reasons for the decision

The introduction of a Lane Rental scheme in
the city would offer a wider benefit to the city, residents and
businesses in potentially easing congestion on the city’s
busiest roads. Lane Rental schemes are intended to focus on
congested, strategic routes that are already classed as traffic
sensitive. The Lane Rental scheme would sit alongside the existing
Permit Scheme and would add an additional layer of management of
works taking place on the network. Whilst the review of the
network, following DfT feedback, has meant a lower network coverage
than we would like, the benefits of having a Lane Rental scheme
still remain.
 
All utility, developer, private and Highway
Authority works on a LR road will attract a daily charge, which
will go into a fund. It can then be used to cover the cost of
setting up and running the scheme in the first instance- i.e. a LR
scheme should be self-funded by the scheme. Any remaining surplus
funds can be used for schemes or innovation that reduce congestion
and most recently the DfT has announced at least 50% of surplus
funds can be used for highway maintenance purposes – pothole
repairs or resurfacing. DfT have made an interim update to guidance
on this. The amendment to the 2012 regulations that will implement
this decision will be made later in 2025. On this basis there is an
expectation of further DfT guidance on how surplus funds are
allocated, documented and reported on, so cannot be treated as
another source of General Fund (GF) revenue but may be able to
offset some GF revenue pressures.
 
In short, the implementation of a Lane Rental
Scheme would allow the Council to charge any works promoter
carrying out any registerable works in the street for the time
those works occupy the highway, in a bid to reduce the amount of
time traffic is disrupted whilst works are being carried out. It is
anticipated a LR scheme would incentivise the completion of works
in an efficient and expeditious manner, thereby reducing the
disruption from the works on the network.
 
In order to
implement a Lane Rental scheme in the city, a detailed application
must be submitted to the DfT for their approval and for the legal
order to be made. In October 2024, the DfT announced that they
would be accepting applications twice a year in April & October
respectively. This paper seeks a decision on an application
re-submission as part of Tranche 2 applications in October 2025 and
would allow for the DfT to assess the application in late 2025/26
(November ‘25- January ‘26). The Lane Rental project
forms part of the Council’s Transformation Programme of
projects, with potential savings being aligned with the roll out of
a scheme. Details of the Transformation savings targets can be
found under Financial Implications below.
 
Significant work has been undertaken with a
consultant to analyse a variety of data sets (traffic data, permit
data, congestion data, bus route data) to understand the type of
works, durations, timing of works as well as traffic data,
including flows and congestion hotspots. Following data modelling,
an initial draft Lane Rental network was generated, as well as
potential timings for that to be applicable. Outputs have been
reviewed and refined further as part of an iterative process to
refine the network extents and the applicable timings. It is worth
noting, there were considerably more roads identified from the
initial outputs than we were able to include in the previous 19.4%
network we’d consulted on and applied for in April. Further
to the DfT feedback and unlikely imminent changes to the guidance,
officers have reviewed and reduced the network to meet the 10%
guidance.
 
The proposed 10% Lane Rental network mainly
covers the Principal A Road routes in the city, following the
review of the network we have still managed to retain some of the
city centre routes but we’ve needed to remove much of the
city centre routes & Classified Roads around the rest of the
city to meet the target of 10%.
 
Lane Rental would be applicable to both
utility works and any SCC or Highway works.
 
The application for Lane Rental would be
scrutinised by the DfT and the decision whether to grant permission
can only be given by the department following their application
review.

Alternative options considered

Do nothing: Non progression of Lane
Rental scheme.
· 
Data analysis and Cost Benefit Analysis clearly show there is both
a need in terms of the delays felt across the city’s roads
and a benefit to seeking to improve this for the wider public.
· 
Public perception of congestion and road works – a key issue
within the city.
 
Further consideration: Delayed
submission of application to the DfT
· 
Further review of the network and submission in April 2026.
· 
Waiting for the DfT to review their guidelines to more urban
authorities such as Southampton.