Connecting the country
Annual report and accounts 2019

Video transcript Our journey so far

We believe in a connected country – joining people, places and businesses together.

Four years into delivering the Government’s first Road Investment Strategy we’ve delivered £6.3 billion worth of road improvements with £848 million of efficiency savings.

44 road schemes have been completed or are under construction, as well as 100 safety schemes. We’ve also completed 109 biodiversity schemes, improving the environment around our network, 951 noise reduction schemes, 101 cycling/walking schemes and built the infrastructure for 38,000 new homes.

We are passionate about making our roads as safe as possible for the people who are travelling or working on them.

Our business at a glance

We believe that connecting people builds communities, creates opportunities and helps the nation thrive. We aim to provide all our customers with safe and reliable journeys through the way we operate, maintain and enhance one of the most advanced road networks in the world.

At a glance at a glance

We manage and maintain 4,300 miles of motorways and major A-roads carrying four million vehicle every day.

  • Our roads carry over two-thirds of all freight.
  • Our major schemes deliver over £2 benefit to the UK economy for every £1 invested.
  • Sectors heavily reliant on our roads employ 7.4 million people and contribute £314 billion to the UK economy.

Where we spent our money

Our total expenditure in 2018-19 was £3.8 billion. In 2017-18 this was £3.4 billion.
This breaks down regionally as follows:

  • North West £335 million (compared to £374 million in 2017-18)
  • North East £304 million (compared to £291 million in 2017-18)
  • Midlands £626 million (compared to £559 million in 2017-18)
  • East £591 million (compared to £566 million in 2017-18)
  • South West £158 million (compared to £129 million in 2017-18)
  • South East £627 million (compared to £474 million in 2017-18)
  • Our national budget was £1,109 million (compared to £1,007 million in 2017-18). This includes PFI service payments, national projects and support costs.

Our RIS1 delivery so far in numbers

  • The value of road improvements is £6.3 billion.
  • We’ve made efficiency savings of £848 million.
  • We have 44 road schemes completed or under construction.
  • We’ve completed 100 safety schemes.

Our RIS1 social impact so far in numbers

  • We’ve completed 109 biodiversity schemes, 951 noise schemes, and 101 cycling and walking schemes.
  • We’ve created infrastructure for 38,000 new homes.
  • We manage and maintain 4,300 miles of motorways and major A-roads carrying four million vehicle every day.
  • Our roads carry over two-thirds of all freight.
  • Our major schemes deliver over £2 benefit to the UK economy for every £1 invested.
  • Sectors heavily reliant on our roads employ 7.4 million people and contribute £314 billion to the UK economy.

Where we spent our money

Our total expenditure in 2018-19 was £3.8 billion. In 2017-18 this was £3.4 billion.
This breaks down regionally as follows:

  • North West £335 million (compared to £374 million in 2017-18)
  • North East £304 million (compared to £291 million in 2017-18)
  • Midlands £626 million (compared to £559 million in 2017-18)
  • East £591 million (compared to £566 million in 2017-18)
  • South West £158 million (compared to £129 million in 2017-18)
  • South East £627 million (compared to £474 million in 2017-18)1
  • Our national budget was £1,109 million (compared to £1,007 million in 2017-18). This includes PFI service payments, national projects and support costs.

Our RIS1 delivery so far in numbers

  • The value of road improvements is £6.3 billion.
  • We’ve made efficiency savings of £848 million.
  • We have 44 road schemes completed or under construction.
  • We’ve completed 100 safety schemes.

Our RIS1 social impact so far in numbers

We’ve completed 109 biodiversity schemes, 951 noise schemes, and 101 cycling and walking schemes.
We’ve created infrastructure for 38,000 new homes.
We manage and maintain 4,300 miles of motorways and major A-roads carrying four million vehicle every day.
Our roads carry over two-thirds of all freight.
Our major schemes deliver over £2 benefit to the UK economy for every £1 invested.
Sectors heavily reliant on our roads employ 7.4 million people and contribute £314 billion to the UK economy.

Where we spent our money

Our total expenditure in 2018-19 was £3.8 billion. In 2017-18 this was £3.4 billion.
This breaks down regionally as follows:
North West £335 million (compared to £374 million in 2017-18)
North East £304 million (compared to £291 million in 2017-18)
Midlands £626 million (compared to £559 million in 2017-18)
East £591 million (compared to £566 million in 2017-18)
South West £158 million (compared to £129 million in 2017-18)
South East £627 million (compared to £474 million in 2017-18)
Our national budget was £1,109 million (compared to £1,007 million in 2017-18). This includes PFI service payments, national projects and support costs.

Our RIS1 delivery so far in numbers

The value of road improvements is £6.3 billion.
We’ve made efficiency savings of £848 million.
We have 44 road schemes completed or under construction.
We’ve completed 100 safety schemes.

Our RIS1 social impact so far in numbers

We’ve completed 109 biodiversity schemes, 951 noise schemes, and 101 cycling and walking schemes.
We’ve created infrastructure for 38,000 new homes.
We manage and maintain 4,300 miles of motorways and major A-roads carrying four million vehicle every day.
Our roads carry over two-thirds of all freight.
Our major schemes deliver over £2 benefit to the UK economy for every £1 invested.
Sectors heavily reliant on our roads employ 7.4 million people and contribute £314 billion to the UK economy.

Where we spent our money

Our total expenditure in 2018-19 was £3.8 billion. In 2017-18 this was £3.4 billion.
This breaks down regionally as follows:
North West £335 million (compared to £374 million in 2017-18)
North East £304 million (compared to £291 million in 2017-18)
Midlands £626 million (compared to £559 million in 2017-18)
East £591 million (compared to £566 million in 2017-18)
South West £158 million (compared to £129 million in 2017-18)
South East £627 million (compared to £474 million in 2017-18)
Our national budget was £1,109 million (compared to £1,007 million in 2017-18). This includes PFI service payments, national projects and support costs.

Our RIS1 delivery so far in numbers

  • The value of road improvements is £6.3 billion.
  • We’ve made efficiency savings of £848 million.
  • We have 44 road schemes completed or under construction.
  • We’ve completed 100 safety schemes.

Our RIS1 social impact so far in numbers

  • We’ve completed 109 biodiversity schemes, 951 noise schemes, and 101 cycling and walking schemes.
  • We’ve created infrastructure for 38,000 new homes.

Our financial review

Overview of our financial performance

We have achieved our financial targets for 2018-19.  We met our Delivery Plan commitments and remained within our £3.8 billion funding. As planned, our capital spend continues to increase as we progress through the current road period, and as more projects enter construction phase. We invested £0.4 billion more this year, and capital spending is 37% greater than three years ago.

Our key financial successes in 2018-19 include:

Our key financial successes in 2018-19 include:

  • Spending £3.8 billion on operating, maintaining and enhancing the SRN, which equates to £10 million a day.
  • Investing £674 million in the renewal of the SRN.
  • Delivering the planned capital investment within our funding.
  • Creating efficiencies to keep within flat operational funding levels.
  • Achieving year-end results (outturn) within 1% of supplementary estimates.
  • Achieving cash outturn for the year within 1% of target.
  • Delivering efficiency savings ahead of RIS1 trajectory.
  • Protecting and increasing the value of the SRN through our maintenance work and enhancement programme.
  • Refinancing the M25 PFI contract, leading to undiscounted savings of £149 million across its lifetime.

Our strategic performance: KPIs

Overview of our strategic performance

This section provides a snapshot of our performance over the last four years, since the beginning of RIS1.

Our eight strategic key performance indicators (KPIs), measured across 10 RIS1 targets set by the DfT in 2015, provide a framework against which we can monitor our progress. Our results for 2018‑19 show that our performance has increased and we have met the majority of our commitments, with further work needed in some areas.

 

Our KPI’s

1. Making the network safer

KPI: We must achieve a 40% reduction in the number of people killed and seriously injured on our network by the end of 2020.

  • In 2015 we achieved a reduction of 1.6%.
  • In 2016 the number of people killed and seriously injured on our network increased by 15.2%.
  • In 2017 we achieved a reduction of 10.5%.
  • In 2018 the number of people killed and seriously injured on our network increased by 2.0%.

2. Improving user satisfaction

KPI: We must achieve a score of 90% road user satisfaction by March 2017 and then maintain or improve that standard.

  • In 2015-16 our score was 89.32%.
  • In 2016-17 our score was 89.11%.
  • In 2017-18 our score was 88.73%.
  • In 2018-19 our score was 88.41%.

3. Supporting the smooth flow of traffic

KPI (a): We must make sure there is 97% lane availability in any one rolling year to support the smooth flow of traffic.

  • In 2015-16 there was 98.40% lane availability.
  • In 2016-17 there was 98.41% lane availability.
  • In 2017-18 there was 98.26% lane availability.
  • In 2018-19 there was 98.29% lane availability.

4. Average delay

KPI: There is no Government set target for this measure

  • In 2015-16 the average delay was 8.93 seconds.
  • In 2016-17 the average delay was 8.95 seconds.
  • In 2017-18 the average delay was 9.19 seconds.
  • In 2018-19 the average delay was 9.37 seconds.

5. Delivering better environmental outcomes

KPI 5a: We must mitigate at least 1,150 noise important areas by 2020.

  • In 2015-16 we mitigated 62 areas.
  • In 2016-17 we mitigated 141 areas.
  • In 2017-18 we mitigated 448 areas.
  • In 2018-19 we mitigated 300 areas.

KPI 5b: We must publish a biodiversity action plan by 30 June 2015 and report annually on how we have delivered against the plan.

We published the plan in 2015-16 and have reported annually on delivery against the plan in each subsequent year.

6. Crossings

KPI: We do not have a measure for this target.

  • In 2015-16 we upgraded 49 crossings and created 13 new ones.
  • In 2016-17 we upgraded 7 crossings and created 20 new ones.
  • In 2017-18 we upgraded 72 crossings and created 28 new ones.
  • In 2018-19 we upgraded 54 crossings and created 29 new ones.
  • For the RIS1 period, the four-year cumulative total is 182 upgraded crossings and 90 new ones.

7. Achieving real efficiency

KPI: We will make capital expenditure savings of at least £1.212 billion by 2019-20.

  • In 2015-16 we saved £55 million.
  • In 2016-17 we saved £114 million, giving a cumulative total of £169 million.
  • In 2017-18 we saved £317 million, giving a cumulative total of £486 million.
  • In 2018-19 we saved £362 million, giving a cumulative total of £848 million.

8. Keeping the network in good condition

KPI: We must ensure that 95% of pavement (the road surface) requires no further investigation for possible maintenance.

  • In 2015-16 we achieved 92.3%.
  • In 2016-17 we achieved 94.3%.
  • In 2017-18 we achieved 95.2%.
  • In 2018-19 we achieved 95.5%.

Our responsibility

For the first time, we have introduced a Social Impact section to our Annual Report this year, to introduce some of the work we do across our business to minimise our impact on the environment and local communities, and to ensure that we operate sustainably, improving the quality of life for current and future generations.

We have £675 million in ring-fenced funding to help protect and develop the surroundings of our SRN, to promote positive environmental, social and economic outcomes for everyone. This funding is separated into five distinct Designated Funds: Environment, Cycling, Safety and Integration, Air Quality, Growth and Housing, and Innovation.

You can read more about our work in each of these areas – as well as our Safety, Customer Service, and People initiatives – in the Responsibility section of our report.