MD2735 Infrastructure Coordination Service Preparation Phase

Pilot phase (June 2019-June 2021)

1.1. MD2386 established a new function (the Infrastructure Coordination Service) within the Infrastructure team after securing £2.87m of funding from the London Lane Rental Scheme Surplus Income .

1.2. To secure the funding, the team developed a business case (see Annex A) which highlighted the potential for London to plan, programme and deliver the pipeline of infrastructure and development activity in a more coordinated way. The scale of works across London reflects not only the rapid growth of the city, but also the critical investment necessary to ensure London is fit for the future, particularly in the context of the ongoing climate emergency.

1.3. The GLA was identified by stakeholders to be perfectly positioned to drive this coordination. Working with boroughs, developers, utilities and other infrastructure providers, the GLA team designed, in the pilot phase, a work programme to respond to challenges in the sector, demonstrate the value of interventions set out in the business case and build a foundation for the continuation of the service.

1.4. The Infrastructure Coordination Service (ICS) pilot phase work programme is composed of three interrelated service lines supported by innovative data tools developed and maintained by the team, and policy experts seeking to use regulatory and policy levers to deliver long term, sustainable change across the sector. The three services are:

• The Streets Service: fostering systematic, long-term planning of collaborative works between infrastructure providers, TfL and borough highway teams and contractors. Utilising the GLA’s Infrastructure Mapping Application to identify opportunities, the team convene works promoters, project manage collaborations, and rigorously monitor and evaluate projects to understand the scale of benefits possible and share best practice. We are also seeking opportunities to build-back-better following infrastructure works, rather than like-for-like reinstatement. And where possible looking to build-in passive provision and influence routing of new assets to reduce the disruption of subsequent works.

• The Development Service: targeted at London’s developers, the service places infrastructure coordinators in boroughs to offer a consultancy-style service with fees charged on a cost recovery basis to help developers manage their interfaces with local infrastructure networks. The coordinators ‘join the dots’ across multiple teams within boroughs (planning, regeneration, housing, highways) and bring strong local infrastructure knowledge to the development project alongside expertise in managing interfaces with infrastructure systems.

• The Planning Service: this service is used by London’s local authorities (in this current phase the London Borough of Tower Hamlets) and infrastructure companies when strategically planning the infrastructure needed to support good growth and achieve other ambitions, including net-zero targets. We bring together all parties at an early stage in planning an area to inform and support the delivery of affordable housing, the viability of development, facilitate upfront strategic investment, create conditions for innovation in design and delivery, while saving costs and minimising disruption.

1.5. All services are delivered locally within partner borough organisations, being aided by our digital tools (the Infrastructure Mapping Application and London’s Underground Asset Register). Our policy team takes the local evidence and works with regulators and government to ensure policy and regulation support our coordination objectives.

1.6. Throughout the pilot phase, the ICS has received strong support across the sector including boroughs, infrastructure providers and other key stakeholders. Initial evaluation results are very encouraging with the ICS demonstrating high value for money. With the current funding ending in June 2021, the team has worked alongside external consultants (Grant Thornton) to conduct a thorough analysis of the current work programme and options for the future. The Infrastructure Coordination Steering Group (comprising senior leadership and subject matter experts within the GLA and TfL) agreed a second phase - the ‘preparation phase’ - would be beneficial to deliver more projects, refine initiatives and gather a greater evidence base before the team can develop a longer-term plan for the future.

Preparation phase (June 2021-June 2023)

1.7. Building upon learning from the pilot, the ICS is proposing to roughly double its delivery across the three service lines and further develop its data tools and policy offering. The preparation phase will see the team responding to demand by increasing geographic reach, delivering more projects, refining its services, collating more learning, increasing engagement and embedding collaboration practices within key organisations.

1.8. The draft GLA Budget for 2021/22 explained that the Infrastructure Coordination Service is funded from external sources and that its continuation would be dependent on this. Discussions with its principal funder, the Lane Rental Governance Committee, have been ongoing and, based on the positive results from the pilot phase, we have now established that the Committee is willing to provide further funding of £3.5m for a two-year preparation phase (June 2021 to June 2023) with an expanded scope and team. This proposal has received endorsement also from the Mayor’s London Infrastructure Group .

1.9. While the funding is expected to be formally agreed by the Lane Rental Governance Committee at the next meeting in February 2021, approval is sought now to ensure there is no gap or delay in delivery, we can retain our pilot phase team and we are able to begin recruitment to the expanded team as soon as funding is formally confirmed – all activities in the preparation phase are contingent on funding approval. The timing of recruitment will be managed to provide opportunities for GLA staff affected by any restructuring as a result of budget savings to apply.

1.10. The GLA ICS team is the core element in ensuring the programme functions successfully. In the pilot phase, the team has also relied to quite a large extent on external consultant support. To reduce reliance on consultants and respond to the increased workload, the ICS is proposing to introduce 11 new two-year fixed-term posts to support the service delivery and data functions: five roles to replace existing consultants, and six new posts to manage the increase in workload. The move from consultancy to fixed-term appointments will provide significant savings to offset some of the additional costs of new roles. The posts would be fully funded from the Lane Rental Surplus Income with no cost-risk to the GLA, and normal Head of Paid Service staffing protocol processes will apply.

1.11. This will ensure we:

• deliver cost efficiency – GLA staff will be more cost effective compared to the higher cost of consultant support (using consultants for the 11 roles needed would add more than £1 million to total costs, compared to GLA recruitment);

• retain talent – internal recruitment will also help ensure that we retain talent, skills and knowledge within the team;

• achieve efficiencies – time will be focused on delivery, rather than onboarding of consultants; and

• offer development opportunities for internal staff – the creation of new posts will offer opportunities to GLA staff.

1.12. An important objective of the pilot phase has been to identify alternative income streams in order to allow the ICS to diversify funding sources. For the preparation phase we have identified a range of options that could support delivery of specific elements of the work programme, including developer fees for the Development Service, funding from boroughs for the Planning Service, and continued Cabinet Office Geospatial Commission funding for London’s Underground Asset Register.

1.13. We have, however, ensured that Lane Rental income alone allows for the delivery of an effective and cost-efficient work programme, funding core activities delivered by the team between June 2021 and June 2023. The proposed £3.5m will cover the full GLA team for two years at a cost of £2.5m. This will allow for a programme budget of £1m to deliver across the three service lines. Additional, more complex elements of the work programme such as enhancing our Streets Service with healthy streets interventions or delivering pan-London sub-regional evidence bases within the Planning Service, will be contingent upon securing further funding from industry, boroughs and other partners, including through the additional potential income streams above.

2.1. As is set out in the Lane Rental Scheme Surplus Income terms of reference the proposal for the ICS Preparation Phase remains focused on reducing disruption and other adverse effects caused by streetworks by ensuring the processes of planning and delivering London’s infrastructure and development is efficient and coordinated.

2.2. Beyond reducing the adverse effects caused by roadworks, the ICS has already illustrated significant benefits to a broad range of stakeholders:

• Londoners:

- improved public realm

- improved air quality

- reduced noise pollution

- reduced disruption

• Boroughs:

- improved delivery of strategic targets such as carbon neutrality

- improved quality of roads and public realm

- cost savings from collaborative works as asset owner

- improved relationships with businesses, residents, and developers

- improved planning for growth

• Transport for London:

- reduced disruption on road network

- improved air quality across London

- cost savings from collaborative works as asset owner

- improved data sharing and planning

• Utility Companies:

- cost savings through more efficient delivery of works

- improved reputation amongst customers

- improved visibility of upcoming development

• Developers:

- improved information for planning and understanding of constraints

- improved reputation amongst local actors

- reduced uncertainty and delay in delivery.

2.3. The ICS will continue to support several of the Mayor’s ambitions around enabling affordable housing delivery, supporting good growth and minimising the negative impacts of growth on London’s environment and communities.

2.4. The Preparation phase will allow the ICS to collect further evidence of the benefits of coordination and the specific interventions being pursued by the GLA. This evidence has already emerged over the course of the pilot phase with monitoring and evaluation remaining an important focus in the next phase. This will help the team to develop and articulate the long-term, sustainable vision for the programme.

3.1. In line with the Mayor’s ambitions, the objectives of the ICS aim to improve all Londoners’ access to essential services, housing, and the city.

3.2. Infrastructure and development works often reduce the accessibility of roads and the public realm, negatively impacting several groups with protected characteristics. The ICS will aim to minimise impacts upon these groups by ensuring their needs are considered wherever possible at an early stage of project planning. Reducing the length of time of streetworks by working collaboratively will also help improve accessibility across London. The proposal also aims to improve the quality of London’s public realm to ensure it caters to the needs of all Londoners, including those with protected characteristics.

3.3. In line with GLA’s Recruitment and Selection policy, for any of the new posts advertised, we will welcome applications from everyone regardless of age, gender, ethnicity, sexual orientation, faith or disability.

Risk assessment:

Links to Mayoral strategies and priorities:

No one involved in the drafting or clearance of this document has any conflicts of interest to declare.

Approval is sought for the expenditure of up to £3.5m for the preparation phase of the Infrastructure Coordination Service and receipt from the TfL Lane Rental Governance Committee (subject to approval in early 2021) to fund the estimated costs of the project.​​​​​​​

Approved project expenditure will occur over the 24-month duration of the phase and span 3 financial years. The split across years and spend categories are detailed below:

​​​​​​​With regards to the staffing resources required to support the programme of work, the intention is for all positions to be recruited on two-year contracts and it is noted that the service is expected to continue after this preparation phase, subject to securing further external funding. However, as these posts will be recruited on a fixed term contract basis, the GLA may become liable for redundancy and/or pension capital costs if the appointees have on-going continuous service from a local authority or similar body. These costs cannot yet be substantiated but in the event such costs do arise, they will be covered by the Lane Rental Surplus Income.​​​​​​​

Once the funding position beyond this two-year preparation phase is confirmed, this will be subject to further approval via the Authority’s decision-making process (including any staffing implications and / or termination of the work programme if not sustainable beyond the period or scaling up of the programme, whichever is applicable).

6.1. The GLA has wide powers under section 30 of the Greater London Authority Act 1999 (GLA Act) to promote economic development and wealth creation, promote social development, and promote the improvement of the environment, all in Greater London. These powers are sufficiently broad to cover the proposed use of funds in this decision.

6.2. There are restrictions under section 31 of the GLA Act on the GLA incurring expenditure on doing anything which may be done by Transport for London (TfL). To the extent that anything proposed in this decision might be done by TfL, under section 31(6) these restrictions do not prevent the GLA co-operating with, or facilitating or co-ordinating the activities of, TfL.

6.3. It is noted in the Executive Summary that “…the team is in the process of securing a further £3.5m from the Lane Rental Surplus Income for a second phase of work starting in June 2021. This has been endorsed by London Infrastructure Group members, the GLA’s Infrastructure Coordination Steering Group and members of the Lane Rental Governance Committee”. The London Lane Rental Scheme is operated under the Street Works (Charges for Occupation of the Highway) (Transport for London) Order 2012. Under regulation 7 of the Street Works (Charges for Occupation of the Highway) (England) Regulations 2012, an “Approved Authority [of which TfL is one] must apply the net proceeds [of a lane rental scheme] for purposes intended to reduce the disruption and other adverse effects caused by street works”. The application of any funding received from the Lane Rental Scheme should comply with this statutory requirement.

6.4. In taking this decision, the Mayor should have due regard to the public sector equality duty under section 149 of the Equality Act 2010, namely, the need to eliminate discrimination, harassment, victimisation and any other conduct that is prohibited by or under the Equality Act, to advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it, and to foster good relations between persons who share a relevant protected characteristic and persons who do not share it. This requirement is addressed at section 3 above.

7.1. The team is currently finalising the application paper for the next phase of work (preparation phase), due to be submitted on 22 January 2021. The funding is then expected to be approved at the next Lane Rental Governance Committee meeting on 22 February 2021.

7.2. Updates will be regularly provided to key stakeholders, the Mayor’s London Infrastructure Group, the Infrastructure Coordination Steering Group and the Lane Rental Governance Committee, which will continue to monitor our progress.

7.3. Recruitment of the new posts is expected to start in March 2021, with a full team in place ready to deliver the work programme from June 2021, the start of the next phase.