Issue - meetings

To consider Transport for the North’s 2023/24 Business Plan and Budget and its associated funding arrangements.

Lead: Paul Kelly

4.1          Members received the report from the Finance Director who outlined the key points in his report which included reference to sustainability challenge in the period beyond the current spending period, i.e. from April 2025. In order to maintain our current capacity and capability into 25/26 he indicated that TfN would require a step change in funding from £6.5m to £8.0m (£7.2m to £8.7m if we include the £0.7m of incremental funding allocated for 23/24 and 24/25) for a 3-year term.

4.2          Cllr Swinburn asked if inflation had been taken into account with the presented figures.

The Finance Director explained that a 7% contingency had been included in order to account for rising inflation.

4.3          Cllr Crane requested information on the support available on the bus service improvement plan.

Resolved:

1)    That the Board notes the draft Business Plan for 2023/24, and delegates the steps required to finalise the Business Plan to the Chief Executive in consultation with the Chair.

2)   That the Board approves the Budget for 2023/24.

3)   That Board notes the Outturn report in particular the projected closing reserves at 31 March 2023 of £3.7m.

4)   That Board approves the proposed use of reserves of £0.83m in 2023/24.

5)   That Board notes that the Audit & Governance Committee reviewed the Annual Treasury Management Strategy.

To consider the 2023/24 Business Plan and budget.

Lead: Martin Tugwell and Paul Kelly

4.1             Members received the presentation of the Finance Director.  The Chief Executive and Finance Director then highlighted the key points in their presentation.

4.2          Cllr Jones requested more information on the Centre of Excellence and its funding.

The Chief Executive explained that as well as the core funding Transport for the North has been granted an additional £700,000 for each of the next two years to develop its offer.  He commented that the organisation is already a centre of excellence which has good quality data that is evidence-led with clear policy development and a strategy that flows from it.  He added the additional funding is an evolution of the current role rather than something new and was pleased to see that additional funding.

4.3          Regarding Great British Railways Transitions (GBRT) Cllr Fenton requested further information on the Northern Proposition and  asked when there is likely to be an announcement on the location of the GBR Headquarters.

The Chief Executive replied that he has no information on when the announcement regarding the headquarters will be.

On the Northern Proposition he stated that across the North a degree of devolution is already in place through the Rail North Agreement provides a role for TfN alongside the DfT overseeing delivery of the Northern and TransPennine contracts as well as, allowing Transport for the North to establish sub–Regional Business Units. 

He explained that a number of activities have been identified by the Rail North Partnership as opportunities going forward including taking account of revenue as well as costs when undertaking business planning and building on the stations as a place initiative.  He then went on to state his belief that there are some aspects of rail reforms that can be moved forward in the North at pace due to the devolution that exists.

Addressing the specific issue of the proposition he explained that work is taking place through a sub group of Members to help develop a detailed proposition about utilising the opportunities created by GBR of having a single guiding mind for the rail industry and how Transport for the North would like this to work.

4.4          Cllr O’Hara asked about support for smaller areas if all the money is to be directed into the bigger locations.

The Chief Executive explained that the evidence base shows that there needs to continue to be investment in growing the railway if strategic outcomes are  to be delivered for the North as well as economic growth that is sustainable and provides people with access to opportunities and services.  He added that in order to do this it is important to continue to make the case for revenues to be considered as well as costs as the strength of the recovery means that there are revenues for services.

He stated that there needs to be continued pressure in support of maintaining the delivery of services that are needed now, as well as being supportive and helping to deliver the investment that is already in the pipeline.

4.5  ...  view the full minutes text for item 4