'Stop treating us like Network Rail': Highways England and ORR, debates and denials

23/07/2020 | CHRIS AMES

Highways England was initially ‘in denial’ about needing to prove it had made the level of efficiency savings it was claiming, its regulator has said.

Speaking to Highways after the publication of his organisation’s annual assessment of Highways England, the Office of Rail and Road’s (ORR) chief executive, John Larkinson, described the issue as ‘a huge public trust question’, but said the two organisations had eventually developed a ‘very professional way of working together’.

The annual assessment states that the necessary evidence ‘was developed by Highways England late in the road period in response to our challenge and we have disagreed in some areas’.

The review concluded that Highways England had achieved £1.4bn of capital efficiencies – exceeding the target of £1.212bn.

To back this up the company provided 200 case studies of management action taken to deliver more efficiently during the road period. The majority of the efficiency has come from renewals (54%) and major improvement schemes (43%), the ORR said.

John Larkinson said: ‘I got this a couple of times from Jim O’Sullivan: stop treating us like Network Rail. Network Rail has spent 10 years working out how to do this kind of efficiency analysis, exactly how to calculate it. What do you expect, that we’ll have it all done in the next month or something?

‘Over time, the issues became clearer; we flexed, they flexed, but within that always keeping your eye on the fact that there is a performance specification; they are the obligations on a company that is being given many billions of pounds.'

He added: ‘There’s a huge public trust question. If you can set an efficiency target, most people aren’t interested in the details. What they do want to know is, have you met it?

‘That was my simple point, that you need to prove to us: have you met it? It can’t just be that you’ve got a few pieces of information and overall it looks like you’ve probably met it. It has to be a lot more precise than that, but on the other hand the systems required to show the business changes that you made to make sure that is a real efficiency, they’re not easy to compile.

‘First of all, Highways England were in a bit of denial about it. They didn’t want to have to go through the process. Then they realised they did have to go through it. We were never going to give up.’

Mr Larkinson cited his experience with Network Rail, for whom the ORR is the regulator and which has recently hit its efficiency target: ‘The failure to hit that in previous years had undermined their case for further public funding.

‘So it was very important that Highways England could make that number add up. [Eventually] they convinced us. They did a really good job in the end.’

According to the annual assessment, Highways England is required to provide evidence of efficiency through primary evidence from efficiency case- studies; unit costs and delivery of the RIS.

The document states: ‘Ultimately, our review found that there was reasonable evidence of efficiency exceeding the KPI target.’

Mr Larkinson also described the prime minister’s plan to ‘build, build, build’ as a big issue for Highways England.

‘Highways England will be looking at options to try and speed work up, do more work; that will be a big new challenge for Highways England. In time, how it reacts to that, what’s possible and what’s not, I think will also be [a challenge].

‘They are working quite carefully through this because it’s got to be deliverable within Highways England’s overall – and the supply chain’s – capability but not at the cost of knocking out things that are already trying to be delivered. Quite a few schemes are optimised around impacts on existing road users as well and disruption on those areas. All those factors have got to be taken into account.’

A full interview with John Larkinson will be published in the August/September issue of Highways magazine. Sign up for print subscription here and digital here.

Highways InProfile

latest magazine issue
Highways jobs

Director of Transport

£112,924
East Midlands Combined County Authority (EMCCA) is on a bold journey. East Midlands Region
Recruiter: East Midlands Combined County Authority

Highways Network Engineer - WMF2169e

£45,091 - £46,142
This position offers a unique opportunity to make a lasting impact on the resilience and effectiveness of our highway network. Kendal,Penrith or Barrow
Recruiter: Westmorland and Furness Council

Highway Network Technician - WMF2168e

£28,598 - £29,540
This role offers an excellent opportunity to gain experience in a specialised area of highways operations while contributing directly Kendal, Penrith or Barrow
Recruiter: Westmorland and Furness Council

Ferry Host - WMF3049i

£25,584 - £25,992
Ferry Host - WMF3049i Windermere, Cumbria
Recruiter: Westmorland and Furness Council

Director of Streetscene

£94,972 - £108,767
We continue to have big ambitions for our borough Fareham, Hampshire
Recruiter: Fareham Borough Council

Principal Engineer - Urban Traffic Control (UTC)

£44,711 - £49,764
Liverpool is home to vibrant, energetic and engaged communities. Liverpool, Merseyside
Recruiter: Liverpool City Council

Lawyer 2- Planning and Highways

£49,764 - £54,181
We are looking for a fresh thinking and enthusiastic Planning and Highways Lawyer Hereford, Herefordshire
Recruiter: Herefordshire Council

Development Engineer

£35,967 - £41,268 per annum
Are you ready to play a key role in shaping and safeguarding the future of our highways and public spaces? Bexley (City/Town), London (Greater)
Recruiter: London Borough of Bexley

Professional Services Partnering Manager

Grade 13 £47,653 - £51,296 per annum (pay award pending)
We are seeking a dynamic and experienced Professional Services Partnering Manager to lead the strategic management Darley Dale, Matlock
Recruiter: Derbyshire County Council

Technical Supervision Manager

Grade 13 £47,653 - £51,296 per annum (pay award pending)
We are looking for an experienced and driven Technical Supervision Manager to lead our technical supervision teams within the Highways Service. Derbyshire
Recruiter: Derbyshire County Council

Street Lighting Electrician (CDC)

Grade 8, £32,662 - £36,239 (pay award pending)
Highways Operations is a growing service area within the Place directorate. Doncaster, South Yorkshire
Recruiter: City Of Doncaster Council

Highways Assistant Engineer WMF2133e

£39,513 to £40,476
We have an exciting opportunity for the right person to work within the challenging and ever-changing landscape. Penrith, Cumbria
Recruiter: Westmorland and Furness Council

Highways Inspector/NRSWA

£36,345 - £40,344
We are looking for an organised and self-motivated individual to join our Streetworks Team based in Hackney Central. Hackney, London (Greater)
Recruiter: London Borough of Hackney Council

Structures Commissioner

Grade 14 £53,166 - £59,080 per annum (Pay Award Pending)
We are seeking an experienced and strategic leader to join our team as the Structures Commissioner. Derbyshire
Recruiter: Derbyshire County Council

PRINCIPAL TRANSPORT PLANNING OFFICER

£43693 - £46731
We have an exciting opportunity for an experienced professional to join our team in Hull as a Principal Transport Planning Officer. Kingston upon Hull, East Riding of Yorkshire
Recruiter: Hull City Council

HIGHWAYS AND TRAFFIC ENGINEER - 4 POSTS

£43693 - £46731
We have several exciting opportunities for suitably qualified Highways Civil Engineers and Traffic Engineers Wilson Centre, 1st floor, Hull HU1 2AG
Recruiter: Hull City Council

Project Lead - Bridges and Structures WMF3037e

£45,718 to £46,731
We are currently seeking to recruit a Project Lead to join our Bridges and Structures team Kendal, Cumbria
Recruiter: Westmorland and Furness Council
SUBSCRIBE NOW

Latest Video

Subscribe to Highways today to ensure you keep your finger on the pulse of everything happening in the UK road network throughout the year.

SUBSCRIBE NOW