Street Works Permit Scheme Review

The Traffic Management Act 2004 (TMA) was introduced to address congestion and disruption on highway networks, providing legislative support for highway authorities to implement permit schemes. Stockton-on-Tees Borough Council adopted its Permit Scheme on 30 March 2020 to enhance co-ordination and minimise disruption caused by street works and road works. 

Key objectives

Some of the key objectives being to:

• minimise disruption on the local highway networks
• provide accurate, timely information to stakeholders
• facilitate proactive and collaborative planning
• ensure parity between internal (Council) and external works promoters

Key highlights for Year 4

Permit applications

Total number of permit applications and variations received: 4,397

Percentage of applications assessed within permitted timescales: 100%

Financial overview

The scheme continued to operate at a deficit, primarily due to increased staffing costs associated with agreed pay settlements.

Effective management of the highway network is critical for reducing congestion, supporting economic growth, and ensuring public safety. Street and road works are inevitable for maintaining infrastructure, but they can cause significant disruption if not managed effectively.

The Stockton-on-Tees Permit Scheme, implemented in 2020 under the The Traffic Management Act 2004 (TMA), allows the Council to regulate and co-ordinate all works on the highway through a structured permitting system. This ensures that works are planned, scheduled, and executed with minimal impact on traffic flow, residents, and businesses.

Year 1

The scheme faced unprecedented challenges due to the Covid-19 pandemic, requiring close collaboration between the Council and utilities to maintain essential services.

Year 2

While the pandemic's impact lessened, co-ordination remained crucial to address lingering challenges.

Year 3

A surge in permit requests occurred due to the government's broadband expansion initiative.

Year 4

This year marked a period of stabilisation, with consistent permit demand and continued focus on improving operational efficiency.

The permit scheme's overarching objective is to ensure the expeditious movement of traffic, as mandated by the The Traffic Management Act 2004 (TMA) Network Management Duty. By empowering the Council to co-ordinate and regulate street works, the scheme minimises disruption, improves safety, and optimises road space usage.

The scheme objectives aim to:

• manage and maintain the local highway network for the safe and efficient use of road space
• provide activity promoters with access to maintain and improve their services and assets while balancing the needs of all road users

The scheme focuses on proactive co-ordination, scheduling, and management of activities to prevent unnecessary disruption. It aims to resolve competing demands for road space in a constructive manner while ensuring compliance with legislative requirements.

The legislative requirements are to:

• maximise road space efficiency - proactively manage the local highway network to ensure safe and efficient use
• improve information quality - enhance the accuracy and timeliness of information provided by all activity promoters
• inform reliable journey times - offer accessible information to the public, supporting reliable travel
• support public transport - minimise disruption to buses and other public transport services
• ensure safety - protect road users and workers involved in street activities
• preserve infrastructure - safeguard the structural integrity of roads and apparatus within them
• promote parity - ensure equal treatment of statutory undertakers and Council-led works promoters

This report reflects the progress and outcomes of Year 4 of the permit scheme.

The Council is committed to fulfilling its obligations under the Equality Act 2010, considering these responsibilities a priority. We place a strong emphasis on protecting vulnerable road users in the co-ordination of its schemes, aligning with the hierarchy of road users outlined in the Highway Code. Those most at risk from road traffic include pedestrian, particularly children, older adults, and disabled people, as well as cyclists, horse riders and motorcyclists.

In addition, the Council is dedicated to promoting inclusive temporary traffic management designs and removing barriers to the independent mobility of disabled and older people, adhering to the principles of the social model of disability. These commitments are central in the planning, implementation, and daily management of projects, ensuring accessibility and safety for all road users.

The Council charges a fee for:

• the assessment and issue of a permit
• an application for a permit, where the permit scheme requires a Provisional Advance Authorisation (PAA) to be obtained as part of that application
• each occasion on which there is a variation of a permit, or the conditions attached to a permit

The Council does not charge a fee for:

• the issue of a permit to internal Stockton-on-Tees Borough Council work promoters
• a permit or permit variation that has deemed

The fees the Council charge is set in accordance with regulations and are structured to reflect the category of and traffic sensitivity of the road.

The permit scheme is designed to be cost-neutral, with allowable costs recoverable through permit fees as defined by the statutory guidance. Any surplus or deficit must be addressed by adjusting fees, provided changes are justified and remain within the nationally capped levels.

Years 1 to 3: The scheme operated at a deficit, primarily due to recovering initial start-up costs.

Year 4: Inflationary pressures, increased staffing costs, and associated pay settlements have continued to contribute to a financial shortfall.

To address this ongoing deficit, it is proposed to increase permit fees with effect from 1 April 2025. This adjustment aims to ensure the scheme becomes self-sustaining and remains compliant with statutory cost-neutrality requirements.

The Department for Transport (DfT) and the Department for Science, Innovation and Technology (DSIT) have announced plans to launch a new programme of trials to assess the use of a "flexi permit." This permit type would cover multiple minor and standard works within a specified area over a limited time period.

The Council intends to actively participate in a flexi permit trial, working in collaboration with the DfT and DSIT to evaluate its potential benefits. This initiative aims to support the accelerated digital rollout across Stockton-on-Tees.

Additionally, the Council will explore the feasibility of implementing a lane rental scheme and will continue to assess its potential for improving the management of street works.

The financial review of the permit scheme indicates that permit costs continue to exceed fee income, resulting in a deficit that cannot be sustained in the long term. Without an increase in fees, the scheme would fail to meet its cost-neutrality mandate, compromising its ability to operate effectively.

Based on the volume of permit applications and the operational costs incurred during Year 4, it is recommended to:

• adjust fees to the maximum levels allowable from 1 April 2025 to align income with ongoing costs
• conduct a further review after Year 5 to ensure fees remain appropriate and aligned with scheme objectives

Frequent or short-term changes to fees are not practical due to the time-consuming statutory procedure required to implement fee amendments. This process diverts resources from the core task of managing street and road works effectively.

The proposed fee structure is based on comprehensive analysis of prior application volumes and operational expenses.

The Street Works Team budget will remain unchanged following this adjustment, but financial performance will be closely monitored. Any necessary amendments will be considered during future reviews to ensure the scheme remains sustainable.