Economy

To support sustainable economic activity and get good value for money.

The Economy Objective is concerned with improving the economic efficiency of transport. The Economy Objective was developed from the principles of A New Deal for Transport (DETR, 1998), the Government’s White Paper on transport. Congestion and unreliability of journeys add to the costs of business, undermining competitiveness particularly in our towns and cities where traffic is worst. The cost to the British economy is estimated to run into billions of pounds every year and is rising.

The Economy Objective has 5 sub-objectives:

• to get good value for money in relation to impacts on public accounts
• to improve transport economic efficiency for business users and transport providers
• to improve transport economic efficiency for consumer users
• to improve reliability
• to provide beneficial wider economic impacts

Appraising against the Economy Objective involves cost-benefit analysis, where the benefits of a scheme are balanced against its costs; and the calculation of the costs includes an assessment of impacts of a scheme on pedestrians, cyclists and other road users; with a monetary value applied to these impacts.

Key Entry Points:

Introductory Material

An Introduction to Transport Analysis, (TAG Unit 1.1) introduces the Government’s Objectives for transport and their role in the appraisal process.

Guidance for the Project Manager

The Overall Approach: Steps in the Process (TAG Unit 2.1) and Objectives and Problems (TAG Unit 2.2) provide an overview of how the identification of problems related to the economy is integral to the study process and how the appraisal of options against the economy objective fits into the overall transport appraisal process.

The Appraisal Process (TAG Unit 2.5) explains the appraisal framework, including the Appraisal Summary Table (AST) that is used to assess the achievement of the Government’s Objectives for transport.

Transport Appraisal and the New Green Book (TAG Unit 2.7) explains in more detail the relationship between the treatment of the Economy Objective in transport appraisal and the general principles of investment appraisal by Government.

Guidance for the Expert

The Economy Objective (TAG Unit 3.5) provides detailed guidance on appraising against the economy sub-objectives.

A full list of TAG Units is available on the Documents page.

For further information:

The policy background to the development of the Governments five objectives for transport is set out in more detail in A New Deal for Transport, The Government's White Paper on the future of transport (DETR, 1998) and A New Deal for Trunk Roads (“The Roads Review”) (DETR, 1998). These documents are available on the DfT website - see Transport Policy Links The Economy Objective has been further developed in line with the Treasury’s approach to appraisal of all Government investment, so The Green Book, Appraisal and Evaluation in Central Government provides further information in this area. See Appraisal Links.