Decision details

Dave Colbert, LCC Specialist Advisor Transportation and Hossein Fars from the consultants Atkins presented a report on the Outline Business Case submission by Lancashire County Council for the Preston Western Distributor scheme, which is seeking Conditional Approval.

The Committee was informed that the Scheme comprises a new 4.3km dual carriageway road connecting the A583 Preston to Blackpool road at Lea with the M55 at a new Junction 2 near Bartle.  This is the largest transport project in the Lancashire Growth Deal programme and key to unlocking the North West Preston strategic housing location (circa 5,000 new homes). 

The scheme is predicted to deliver high value for money with a benefit to cost ratio of 2.29 and has the potential to generate an additional £144m of GVA for the local economy over the 60 year evaluation period, principally through unlocked development.  Over 5,000 new homes are dependent on or unlocked by the Preston Western Distributor.

Having undertaken an independent assessment of the Outline Business Case on behalf of the LEP, the consultants, Atkins, advised that they were satisfied that the project has been developed to the expected standard in most areas and recommended that Conditional Approval be granted to enable the scheme to progress to a Full Business Case submission. It was reported orally that DfT guidance has changed since Atkins completed their report and that the impact of the new guidance on the BCR will need to be established.

It was reported that the current projected outturn capital cost of the Preston Western Distributor as set out in the Outline Business Case is expected to be £161.6m; this is somewhat higher than the £104.5m reported at Programme Entry.  It was explained that the Programme Entry estimate was based on the best information available at the time and in advance of any site investigation or design work.  It was also at 2013 Quarter 2 prices and excluded any adjustment for inflation.  The scheme includes the construction of two major viaducts and additional costs for the diversion of the Hodder Aqueduct (crossed twice).

It was noted that regardless of the increased cost, the scheme has a BCR of over 2 and there are significant wider economic benefits to be taken into account.  Providing the scheme is approved, there are 2 years to the end of the Growth Deal programme remaining and it was felt that any issues along the way could be comfortably addressed within this timescale. That said, it was noted that the timing of the Compulsory Purchase Order process is determined by the Secretary of State and therefore not within the County Council's control

Following debate on the cost of the project and the importance of the scheme to the economic growth of the region and dependent housing delivery it was:

Resolved: That:

i)  The Outline Business Case report as set out at Appendix A to the report be noted.

ii)  The Lancashire Enterprise Partnership Board be recommended to grant the scheme Conditional Approval at their meeting on 30 January 2018.