Funding and financing
Overview
It is important to note that the East Sussex Freight Strategy and its investment and intervention priorities are not currently funded. This section sets out the potential funding and financing opportunities for the proposed interventions identified in the strategy.
The availability of funding, with consideration to the costs of development, construction, maintenance and renewals, alongside operational costs, will be a key challenge in delivering the strategy. Additionally, routes for financing, as well as how and from whom the funding is secured to meet the costs of delivery as they arise, may change over the life of this strategy, Local Transport Plan 4 (LTP4), and its Investment Plan.
As the Strategy is made up of several diverse schemes or initiatives, there is not going to be a ‘one size fits all’ funding and financing solution that applies across the programme. Over the life of the plan, this strategy will provide East Sussex County Council (and in the near future, the Sussex & Brighton Mayor and newly created unitary authorities across the Sussex & Brighton geography), their partners and communities, the opportunities to explore and innovate how funding can be secured and combined to study, develop and deliver transport infrastructure interventions and initiatives.
Types of funding
Both the delivery of this strategy and constituent interventions require financial support, whether as part of capital investment, or through continued operation. Consequently, partners with responsibilities in the delivery of this strategy will also have a responsibility to help identify and respond to funding and financial opportunities.
Financing mechanisms can be used to fund both the capital and operating requirements of transport networks, and are particularly useful for interventions which provide repayment, or are assets that are likely to increase in value. However, there are considerable risks regarding investment undertaken in this manner, most notably due to fluctuations in loan interest rates, and the appetite for financial institutions and private sector to invest in transport infrastructure.
Funding sources
Central government bodies
Such as the DfT, Office for Zero Emission Vehicles, and the Ministry of Housing, Communities and Local Government, both provide capital funding for freight and logistics interventions and schemes. This funding varies due to a range of factors, such as uncertainty in the national economy, alongside other political priorities.
MCCA for Sussex and Brighton, and local government reorganisation
The establishment of the MCCA for Sussex and Brighton, and local government reorganisation - resulting in the creation of new unitary authorities across the West Sussex, Brighton & Hove and East Sussex geography - will change the powers and funding for strategic planning, transport, and economic growth from central government. As part of this it is expected that local authorities will be allocated longer term transport settlements for funding local transport infrastructure for delivery and studying of schemes that can lead to economic growth. This section will be updated as further information and detail becomes available.
Local authorities
The existing two-tier model for local authorities has resulted in significant limitations to generate revenue outside of what is required for general operations. Consequentially, local authorities are often limited to funding small-scale freight and logistics interventions funded by mechanisms such as scheme specific council allocated funding, government grant funding, and (S106) development contributions/Community Infrastructure Levy charges.
Match funding
Can be provided by public or private sector organisations to deliver specific interventions, such as the Charging Infrastructure Investment Fund (2018) which is used to accelerate electric vehicle charging infrastructure to support the electrification of vehicles.
Private sector organisations
Invest in their own operations and supply chains to maintain their competitiveness within the sector they operate in. Private investment can be seen at SRN electric vehicle charging points which are operated by private operators. There is a need for private sector organisations to collaborate and help support and contribute towards growth in East Sussex.