URL: https://www.southampton.gov.uk/modernGov/ieDecisionDetails.aspx?ID=3562

Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: To consider the report of the Cabinet Member for Transport seeking approval for the Lane Rental Scheme.

Content: (i)  To approve the Lane Rental Scheme application to the DfT for their review, following the public consultation on the revised Lane Rental Network for the city’s roads. (ii)  Subject to the outcome of the application to the DfT, delegate to authority to the Director of Transport & Planning to do anything necessary to implement the approved Lane Rental scheme. Its introduction would be as per Section 74A of the New Roads and Street Works Act 1991 and in pursuance of its Network Management Duty as set out in the Traffic Management Act 2004. The introduction of a Lane Rental scheme in the city would offer a wider benefit to the city, residents and businesses in potentially 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. Whilst the review of the network, following DfT feedback, has meant a lower network coverage than we would like, the benefits of having a Lane Rental scheme still remain.   All utility, developer, private and Highway Authority works on a LR 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 scheme in the first instance- i.e. a LR scheme should be self-funded by the scheme. 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, documented and reported on, so cannot be treated as another source of General Fund (GF) revenue but may be able to offset some GF revenue pressures.   In short, 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 LR scheme would incentivise the completion of works in an efficient and expeditious manner, thereby reducing the disruption from the works on the network.   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 in April & October respectively. This paper seeks a decision on an application re-submission as part of Tranche 2 applications in October 2025 and would allow for the DfT to assess the application in late 2025/26 (November ‘25- January ‘26). The Lane Rental project forms part of the Council’s Transformation Programme of projects, 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.   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. Following data modelling, an initial draft Lane Rental network was generated, as well as potential timings for that to be applicable. 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 previous 19.4% network we’d consulted on and applied for in April. Further to the DfT feedback and unlikely imminent changes to the guidance, officers have reviewed and reduced the network to meet the 10% guidance.   The proposed 10% Lane Rental network mainly covers the Principal A Road routes in the city, following the review of the network we have still managed to retain some of the city centre routes but we’ve needed to remove much of the city centre routes & Classified Roads around the rest of the city to meet the target of 10%.   Lane Rental would be applicable to both utility works and any SCC or Highway works.   The application for Lane Rental would be scrutinised by the DfT and the decision whether to grant permission can only be given by the department 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. ·  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 April 2026. ·  Waiting for the DfT to review their guidelines to more urban authorities such as Southampton.

Date of Decision: September 25, 2025