1. Funding Strategic Infrastructure securing a sustainable and prosperous Hampshire Stuart Jarvis, Director Economy, Transport and Environment 18 th July 2011

2. Strategic Infrastructure 1.Background 2.Challenges 3.New funding mechanisms 4.Hampshire opportunities - Senate backed local solutions

3. Background Historic Funding Model in Hampshire and the South East Developer Funding Government Funding Privatised Utility Company Investment Council Funding

4. Developer Contributions 2005/6 – 2010/11 Section 106 secured £150M for key infrastructure HCC Transport Tariff and School contributions formula Affordable Housing No comprehensive system in place Restriction of S106 for Off Site Works Community Infrastructure Levy

5. Government Funding Scaled back PFI Reduced national infrastructure spending and focus on marquee projects (e.g. HS2) Competitive Funding Mechanisms Disaggregation of funding streams and Priorities Complexity and Cost of Bidding Direct Government Capital Spending (e.g. Schools)

6. Utilities Investment Regulators Role and Remit Short Term Investment Planning Role of the Quangos Environmentalism and Sustainability

7. Council Funding Reduced Government Funding and ‘Council Tax Freeze’ Scaling back Capital grants and PFI e.g. LTP Integrated Transport Funding LTP2 2006/7 £13.3 million LTP 3 2011/12 £6.5 million Struggle to fund bids and find match funds Local Govt Funding Review

8. Challenges Size of the Task Hampshire Infrastructure Review 2009 (amended 2011)

9. Challenges Cont…

10. Future funding mechanisms Regional Growth Fund New Homes Bonus Community Infrastructure Levy

11. Additional funding options Review the use of local government finance: Consider asset backed Hampshire bonds Maximise funding streams / mixed portfolio

12. Delivery mechanisms Joint Strategic Infrastructure Plans Pooling of resources / capitalising funds Economies in procurement Political leadership

13. Conclusions

14. Questions