Funding Strategic Infrastructure

securing a sustainable and prosperous Hampshire

Stuart Jarvis,Director Economy, Transport and

Environment 18th July 2011

Strategic Infrastructure

1. Background 2. Challenges 3. New funding

mechanisms 4. Hampshire

opportunities- Senate backed local solutions

Background

• Historic Funding Model in Hampshire and the South East

• Developer Funding• Government Funding• Privatised Utility Company

Investment• Council Funding

Developer Contributions2005/6 – 2010/11

• Section 106 secured £150M for key infrastructure

• HCC Transport Tariff and School contributions formula

• Affordable Housing• No comprehensive system in place • Restriction of S106 for Off Site Works• Community Infrastructure Levy

Government Funding

• Scaled back PFI • Reduced national infrastructure spending and

focus on marquee projects (e.g. HS2)• Competitive Funding Mechanisms• Disaggregation of funding streams and

Priorities• Complexity and Cost of Bidding • Direct Government Capital Spending (e.g.

Schools)

Utilities Investment

• Regulators Role and Remit• Short Term Investment Planning• Role of the Quangos• Environmentalism and

Sustainability

Council Funding• Reduced Government Funding and

‘Council Tax Freeze’• Scaling back Capital grants and PFI

e.g. LTP Integrated Transport Funding LTP2 2006/7 £13.3 million LTP 3 2011/12 £6.5 million• Struggle to fund bids and find match

funds• Local Govt Funding Review

Challenges •Size of the Task

•Hampshire Infrastructure Review 2009 (amended 2011)

Challenges Cont…

Future funding mechanisms

• Regional Growth Fund• New Homes Bonus• Community Infrastructure Levy

Additional funding options

Review the use of local government finance:

Consider asset backed Hampshire bonds

Maximise funding streams / mixed portfolio

Delivery mechanisms

• Joint Strategic Infrastructure Plans• Pooling of resources / capitalising

funds• Economies in procurement • Political leadership

Conclusions

Questions