News story: Defence Minister outlines progress on building a Better Defence Estate

In a statement to MPs, Mr Ellwood confirmed that the MOD has already disposed of nine sites and has advanced its plans for the release of other sites which have been identified for sale.

The changes under the Better Defence Estates Strategy, announced in 2016, are the most significant since the end of the Second World War and will see the sale of 91 sites owned or managed by the MOD.

The site sales will release land no longer required by the military, which will be able to be used for more economically beneficial purposes, such as house building.

The plans will save the taxpayer around £140 million by the end of the decade, rising to £3 billion by the end of 2040. The changes will also reduce the number of personnel being regularly moved between different bases, providing greater long-term stability and certainty for our Armed Forces and their families.

All money raised will be reinvested back into defence, with £4 billion committed to improving military bases, including accommodation.

Mr Ellwood also announced that the RAF will stop using RAF Linton-on-Ouse in North Yorkshire by 2020 and RAF Scampton in Lincolnshire by 2022.

RAF Scampton is the current home of the Red Arrows and work is underway to find them a new home fit for purpose. The MOD will work closely with the local council and potential buyers to ensure the site’s future use meets the needs of the local economy, whilst also exploring ways in which the heritage of the site, including a museum, can be preserved.

Despite RAF Scampton’s closure, the RAF presence in Lincolnshire continues to grow. There will be significant investment in the Lincolnshire area, with several hundred service personnel arriving at RAF Cranwell, RAF Waddington and RAF Coningsby over the next five years.

RAF Linton-on-Ouse, the main base for the No.1 Flying Training School, will cease being an RAF Station in 2020 and the MOD is currently considering other potential defence uses, ahead of an eventual disposal of the site.

Minister for Defence People and Veterans Tobias Ellwood said:

Our military bases are where our service personnel live, train and work, so it’s important that we have sites which suit the needs of the armed forces.

That’s why we’re making our defence estate more modern and efficient, by closing sites we don’t need and investing in more modern accommodation. As well as saving money, and allowing reinvestment back into a more modern and better defence estate, the changes will provide greater long-term stability and certainty for our Armed Forces and their families.

Key facts

  • The Better Defence Estates strategy is part of the Defence Estate Optimisation Programme, which will reduce the size of the built estate by 30 per cent by 2040 and will meet our SDSR commitment. See the strategy here

The programme has already delivered nine disposals at:

  • Hullavington Airfield
  • Chalgrove Airfield
  • Somerset Barracks
  • MOD facilities at Swansea Airport
  • Moat House
  • Rylston Road ARC (London)
  • Newtonards Airfield
  • Copthorne Barracks
  • Lodge Hill

  • The plans will deliver savings of over £140 million of running costs over the next 10 years, rising to nearly £3 billion by 2040. This is in addition to the £4 billion which will be spent over the next 10 years.

  • As at 1 April 2016, the MOD currently controls around 2% of UK land, owning more than 568,000 acres of land and foreshore in the UK (either freehold or leasehold) and holding the rights over a further 548,573 acres.

  • The estate includes approximately 50,000 houses, 60,000 technical assets such as hangars or workshops and 20,000 other key assets such as runways and electrical networks.

  • The cost of maintaining this estate is significant, approximately £2.5bn per annum and spread across too many inefficient assets and sites.

  • Approximately 40 per cent of our built assets are over 50 years old and do not meet the needs of a modern fighting force.

  • The size of the built estate has reduced by 9 per cent since 1999/00 compared to a total personnel reduction of 36 per cent.



Press release: Government proposes shake-up of Local Enterprise Partnerships

New proposals for Local Enterprise Partnerships (LEPs) to supercharge economic growth and drive forward investment in local businesses across the country have been put forward by ministers today (24 July 2018).

The publication of the ‘Strengthened Local Enterprise Partnerships’ review sees government delivering on its promise in the Industrial Strategy white paper to bring forward reforms to the leadership, governance and accountability of the 38 LEPs charged with kick-starting economic growth and creating jobs in their regions.

The review proposes a number of changes to boost the performance of LEPs, increase their diversity and ensure they’re operating in an open and transparent way. These include:

  • up to £20 million of additional funding between 2018 to 2019 and 2019 to 2020 to support the implementation of these changes and embed evidence in Local Industrial Strategies
  • supporting LEPs to consult widely and transparently on appointing new Chairs and improve board diversity
  • a requirement for women to make up at least one third of LEP boards by 2020 with the expectation of equal representation by 2023
  • a mandate for LEPs to submit proposals for revised geographies including removing situations in which 2 LEP geographies overlap

The Communities Secretary, Rt. Hon James Brokenshire MP, said:

This publication of the Strengthened Local Enterprise Partnerships policy represents a step change in approach for LEPs. We will continue our work to strengthen these leading institutions to develop ambitious strategies for growth and build an economy which is fit for the future.

Local Growth Minister, Jake Berry MP, said:

We’ve committed over £9 billion to help LEPs through 3 rounds of Growth Deals to deliver on their investment priorities, while creating new and exciting economic opportunities for local businesses and communities across the country.

This landmark shake-up of our local enterprise partnerships will help us deliver on our pledge to deliver over £12 billion through the Local Growth Fund by 2021 while allowing LEPs to use their local knowledge to deliver inclusive growth.

Further information

Local Growth Fund

Local Enterprise Partnerships are playing a vital role in driving forward economic growth across the country, helping to build a country that works for everyone.

By 2021, government will have invested over £12 billion through the Local Growth Fund, allowing LEPs to use their local knowledge to get all areas of the country firing on all cylinders.

Analysis has shown that every £1 of Local Growth Fund invested could generate £4.81 in benefits.

The full ‘Strengthened Local Enterprise Partnerships’ report can be accessed on GOV.UK

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Press release: Upgrades to busy M3 junction at Winchester backed

96% of people who responded to the non-statutory consultation backed the need for the improvements to this junction, which will be redesigned under the plans to create dedicated free flow lanes which will allow drivers travelling between the M3 and the A34 to avoid using the junction roundabout.

The roundabout itself will be rebuilt to allow for the additional lanes to run through it, increasing capacity and making it easier for traffic to interchange between the M3 and the A34. This will reduce queuing and make journey times more reliable.

Highways England Project Manager Simon Hewett said:

More than 110,000 vehicles use this busy junction each day to interchange with the A34 and routes into Winchester, often more than 6,000 each hour during peak times. Regular road users know that often becomes congested, with queues backing up onto the main carriageway.

The upgrade to M3 junction 9 will create new dedicated link roads to separate out local and long distance traffic. Through traffic will not have to stop at the roundabout, freeing it up for local traffic and commuters. We are improving access for pedestrians, cyclists and equestrians, with the upgrade including a new 4m side cycle path with a new footpath next to the cycleway to the River Itchen.

We are aware of people’s concerns about traffic merging between the A34 and A33; this was the most common point raised during the consultation period and we are reviewing a number of options to address this.

A public consultation on the upgrade was held from 9 January to 19 February. 854 responses were received during this consultation. Information events were held in the Winchester area for the public and stakeholders including local authorities, landowners and businesses, so people could look at the plans and speak to members of the project team.

96% of people who responded to the consultation questionnaire said they agree that improvements are needed at the junction. 98% of people were concerned about traffic congestion at the existing M3 junction 9, with 92% concerned both about road safety and reliability of journey time.

Today’s announcement paves the way for work on the upgrade to start in the 2021, subject to statutory processes. The upgraded junction is expected to be fully open to traffic in 2023.

A copy of the consultation report and announcement flyer can be found on the Highways England website where anyone interested in the scheme can also sign up to receive updates.

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Statement to Parliament: Annual update on Crossrail 2018

It has been another productive year for the Crossrail project with a number of key milestones achieved and progress made across all areas. The programme is now 93% complete and is entering the critical testing and commissioning stage.

In May as part of the second stage of the Crossrail opening strategy, TfL Rail took over operation of the former Heathrow Connect service to Heathrow Airport as well as some local services between Paddington and Hayes & Harlington. This builds on the introduction of new Class 345 trains on the Liverpool Street to Shenfield route in June 2017. Fifteen of the new trains are now in regular service.

All core track work was completed last summer, which enabled the first Elizabeth line train to make its maiden voyage through the central tunnels in February this year. The new Abbey Wood station opened to existing rail passengers, and the construction and fit-out of the other new Elizabeth Line stations continues to progress with the installation of lifts and escalators and completion of architectural finishes. The Department for Transport and Transport for London (TfL) – the joint sponsors of the project – continue to work with Crossrail Limited to ensure operational readiness in advance of the opening of the Elizabeth Line.

As reported in the update to Parliament last year, cost pressures have increased across the project. Both the department and TfL remain committed to the successful delivery of this project and have agreed an overall funding envelope for delivery of the project of £15.4 billion. This will enable the completion of the project at a cost lower than planned under the last Labour government. The anticipated cost of the project was previously estimated at £15.9 billion in 2007 and increased to £17.8 billion in 2009, before the Coalition Government took steps to bring down the costs following the June 2010 Comprehensive Spending Review.

The additional funding is being provided to both Crossrail Limited and Network Rail. £300 million is being made available to Crossrail Limited, with the Department for Transport and TfL contributing £150 million each.

Around £290 million is being provided for completion of the programme of works on the national rail network, and is being funded by the Department for Transport and Network Rail. It remains the case that over 60% of the project’s funding has been provided by Londoners and London businesses.

Further details on Crossrail Limited’s funding and finances in the period to 29 May 2018 are set out in the table below.

This year, the Crossrail project’s health and safety indicators have remained industry leading, with a strong performance demonstrated throughout the year with all the key indicators exceeding the corporate objectives for the year 2017/18.

Network Rail have also delivered a significant programme of Crossrail related surface works, successfully connecting the existing rail network with the Elizabeth Line tunnels at Pudding Mill Lane, Plumstead and Westbourne Park. They have also completed the largest and most complex signalling upgrade ever undertaken by Network Rail on the approach into Paddington on one of the busiest stretches of railway in the country.

There have been planned changes in the leadership and governance of the project as we approach the final stages of delivery. I would like to take this opportunity to thank Andrew Wolstenholme for his work in progressing the programme and acting as a champion for Crossrail during his time as Chief Executive. He has been succeeded by Simon Wright as Chief Executive and Programme Director. Crossrail Limited’s Board has been restructured to keep the management of the programme efficient and cost effective while maintaining the people and structure necessary to deliver the railway through to full opening. As part of this, both the department and TfL have appointed new non-executive directors to the Crossrail board to provide increased scrutiny and assist in the transition of the project as it enters its final stages.

As with all projects of this nature, there have been a number of engineering and technical challenges that have already been surmounted in order to build the first new railway for a generation, and there will continue to be challenges right up until the final completion of the project.

The new railway will transform travel in, to, and across London, with the positive economic benefits being felt across the country. Its legacy will continue to support many thousands of jobs, over 1000 apprenticeships and a supply chain that is spread across the length and breadth of the UK.

During the passage of the Crossrail Bill through Parliament, a commitment was given that an annual statement would be published until the completion of the construction of Crossrail, setting out information about the project’s funding and finances.

The relevant information is as follows.

The numbers above are drawn from Crossrail Limited’s books of account and have been prepared on a consistent basis with the update provided last year. The figure for expenditure incurred includes monies already paid out in relevant period, including committed land and property expenditure where this has not yet been paid. It does not include future expenditure on construction contracts that have been awarded.

Total funding amounts provided to Crossrail Limited by the Department for Transport and TfL in relation to the construction of Crossrail to the end of the period (22 July 2008 to 29 May 2018) £11,713,723,131
Expenditure incurred (including committed land and property spend not yet paid out) by Crossrail Limited in relation to the construction of Crossrail in the period (30 May 2017 to 29 May 2018) (excluding recoverable VAT on Land and Property purchases) £1,619,238,000
Total expenditure incurred (including committed land and property spend not yet paid out) by Crossrail Limited in relation to the construction of Crossrail to the end of the period (22 July 2008 to 29 May 2018) (excluding recoverable VAT on land and property purchases) £12,506,215,837
The amounts realised by the disposal of any land or property for the purposes of the construction of Crossrail by the Secretary of State, TfL or Crossrail Limited in the period covered by the statement. £18,462,238



Press release: HS2 Ltd appoints Chief Operating Officer and Chief Financial Officer

HS2 Ltd has appointed a new Chief Operating Officer and Chief Financial Officer, the company has announced today.

Richard Robinson joins HS2 Ltd as Chief Operating Officer from AECOM where he was Chief Executive of Civil Infrastructure in Europe, Middle East, India and Africa. Richard brings a wealth of experience to HS2 Ltd where he will support Chief Executive, Mark Thurston to deliver Europe’s largest infrastructure project.

Commenting on the appointment, HS2 Ltd Chief Executive, Mark Thurston, said:

I am delighted to welcome Richard to the team at HS2. He joins us at an exciting time and brings wide-ranging experience of complex infrastructure projects and extensive management skills.

Richard’s appointment will enhance our leadership team at this important time, as the project picks up pace and we begin to deliver lasting economic benefits across the UK.

At AECOM, Richard led the growth of the Civil Infrastructure business, first as Managing Director and then Chief Executive, leading 8000 people across four regions and a range of infrastructure projects. Prior to this, Richard was the Managing Director of AECOM’s Transportation Europe business. Before joining AECOM Richard held leadership roles at Heathrow Express, Tickex.com and Anglo American Plc.

New Chief Operating Officer at HS2 Ltd, Richard Robinson, added:

I am thrilled to be joining the team at HS2 Ltd. Working on Europe’s largest infrastructure programme is an exciting prospect and I look forward to playing my part in a project that will leave a significant legacy here in the UK.

Michael Bradley, CB, is also joining the company as Chief Financial Officer. Michael comes from Defence Equipment and Support (DE&S), an arms-length body of the Ministry of Defence, where he is CFO and Director General Resources, and has been Acting CEO since December 2017.

Responsible for managing the financial affairs of a multi-billion government body, Michael has extensive experience in both the public and private sectors where he has been responsible for financial accounting and planning and internal auditing and assurance.

Commenting on Michael’s appointment, Mark added:

Michael is an excellent addition to the HS2 Ltd team and brings a wealth of experience with him to this important role.

HS2 is a hugely important project that will leave a significant economic legacy here in the UK and it is imperative that we have the best people in place to deliver our ambitions.

At HS2 Ltd, Michael will be leading the Finance team, Corporate Sponsorship, and the Programme Management Office.

Incoming Chief Financial Officer, Michael Bradley, said:

I am looking forward to joining the team at HS2 Ltd. This is a fantastic project, that will deliver significant benefits, and I am excited to be a part of it.

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