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Proposals unveiled to widen transport scheme impact assessment

Published: Thursday, 29th September 2016

Department for Transport launches new consultation to gather input on proposed changes to the wider economic impacts guidance and priorities for further research…

Key changes in the way the impact of transport schemes is assessed has been proposed by the Department for Transport and are now out for consultation.

Under these proposals greater weight would be given to impacts on the wider economy beyond the businesses and passengers directly affected by the scheme.

This would include productivity gains from employees and how well businesses are connected to each other. The appraisal would also cover structural changes as businesses and households relocate.

Crucially, regeneration impacts have been integrated into the assessment of wider economic impacts. This reflects a greater focus on understanding the distribution of economic activity within the guidance on wider economic impacts.

The proposals provide greater clarity about how the analysis of wider economic impacts will be used to inform assessments of value for money. This assessment will involve a consideration of the degree to which the scheme will produce structural economic impacts and change land-use.

The changes also focus on the relationship between the measures of benefits used in appraisal (welfare) and economic metrics such as GDP or GVA and employment. The guidance describes how these should be reported in the Transport Business Case and introduces new requirements to ensure that these measures can be reconciled to a consistent evidence base.

Access the consultation.

Roger Milne