Decision details

To consider the report of the Cabinet Member for Environment and Transport seeking approval for the Lane Rental Scheme.

(i)  To submit a Lane Rental Scheme application to the DfT for their review in April 2025 (tranche 1).

(ii)  Subject to the outcome of the application to the DfT, to delegate the authority to the Director of Transport & Planning, following consultation with the Cabinet Member for Environment & Transport, Executive Director of Enabling Services (s.151 Officer) and Director of Legal & Governance to take all decisions and actions necessary to implement any DfT approved scheme. 

1.  The introduction of a Lane Rental scheme in the city would offer a wider benefit to the city, residents and businesses by reducing the impact of works on the highway network and support easing congestion on the city’s busiest roads. Lane Rental schemes are intended to focus on congested, strategic routes that are already classed as traffic sensitive. The Lane Rental scheme would sit alongside the existing permit scheme and would add an additional layer of management of works taking place on the network.

2.  All utility, developer, private and Highway Authority works on a Lane Rental Road will attract a daily charge, which will go into a fund. It can then be used to cover the cost of setting up and running the Lane Rental scheme in the first instance- i.e. a Lane Rental scheme should be self-funded.  Any remaining surplus funds can be used for schemes or innovation that reduce congestion and most recently the DfT has announced at least 50% of surplus funds can be used for highway maintenance purposes – pothole repairs or resurfacing. DfT have made an interim update to guidance on this. The amendment to the 2012 regulations that will implement this decision will be made later in 2025.  On this basis there is an expectation of further DfT guidance on how surplus funds are allocated must be fully documented and reported on, so cannot be treated as another source of general-purpose revenue.

3.  The implementation of a Lane Rental scheme would allow the Council to charge any works promoter carrying out any registerable works in the street for the time those works occupy the highway, in a bid to reduce the amount of time traffic is disrupted whilst works are being carried out. It is anticipated a Lane Rental scheme would incentivise the completion of works in an efficient and expeditious manner, thereby reducing the disruption from the works on the network.

4.  In order to implement a Lane Rental scheme in the city, a detailed application must be submitted to the DfT for their approval and for the legal order to be made.  In October 2024, the DfT announced that they would be accepting applications twice a year as follows and so on.

• Tranche 1: all bids sent to the DfT between now and 1 April 2025 will be assessed as a group between May-July 2025

• Tranche 2: any bids sent by 1 October 2025 will be assessed as a group between November 2025-January 2026

An application submission as part of Tranche 1 applications in April would allow for the DfT to assess the application in 2025. The Lane Rental scheme forms part of the Parking & Traffic Management Transformation Programme, with potential savings being aligned with the roll out of a scheme. Details of the Transformation savings targets can be found under Financial Implications below.

5.  Significant work has been undertaken with a consultant to analyse a variety of data sets (traffic data, permit data, congestion data, bus route data) to understand the type of works, durations, timing of works as well as traffic data, including flows and congestion hotspots. Subsequent analysis has then allowed for modelling works to be undertaken to create an initial draft network for Lane Rental to be applicable to, as well as potential timings for that to be applicable as well. Outputs have been reviewed and refined further as part of an iterative process to refine the network extents and the applicable timings. It is worth noting, there were considerably more roads identified from the initial outputs than we were able to include in the final draft. The finalised draft network and analysis has then been used to which form part of the consultation to stakeholders and the public, ahead of the application to the DfT.

6.  The proposed Lane Rental network covers some of the key city centre routes and bus interchanges, it is hoped the proposed scheme can help improve journey times for more sustainable modes of transport such as bus patronage, cyclists.

7.  Lane Rental would be applicable to any SCC or Highway works carried out on the proposed network.

8.  The application for Lane Rental would be scrutinised by the DfT and the decision whether to approve can only be given by the DfT following their application review.

Do nothing: Non progression of Lane Rental scheme.

•  Data analysis and Cost Benefit Analysis clearly show there is both a need in terms of the delays felt across the city’s roads and a benefit to seeking to improve this for the wider public.

•  Adverse public perception of congestion and road works – a key issue within the city.

Further consideration: Delayed submission of application to the DfT

•  Further review of the network and submission in October 2025 (tranche 2).

•  Project has moved at pace to try and meet the tranche one deadline for DfT approval.

•  Realistically in terms of the proposed Lane Rental network it is not recommended to reduce this and dilute the potential effect it could have on the network.