T0034 RIS Economy Model

Highways England has invested in developing the "Highways England Economy Model" (the Economy Model). The Economy Model is a Land Use Transport Interaction (LUTI) based model. It has been developed since 2017 with the Arup-Aecom Consortium supported by David Simmonds Consultancy and KPMG.

The Economy Model is used by analysts in Highways England's Chief Analyst Division (CAD) to test the potential local and regional economic impacts of major highways investments. Highways England aims to build upon the investment and progress made in the Economy Model to date. The ambition is to continue using the Economy Model to support and influence the development of the third Roads Investment Strategy (RIS3).

Highways England therefore wishes to maintain, enhance, and build confidence in the Economy Model. This work order scope sets out the four key objectives for further work on the Economy Model over the remainder of 2020/21 and into 2021/22:

1. Ensure that Highways England can continue to use the Economy Model and realise the investments made over the past three years. This includes maintenance and software licensing; and an improved interface to speed up analysis.

2. Test and enhance the inputs of accessibility. A programme to investigate and improve the interaction with Regional Traffic Models; and to review the 'generalised cost' measures used in the Model.

3. Build confidence in the Model's method and results. Ensure explicit links with economic evidence for transport, growth and locational choice; and explore validating the Model against past road schemes.

4. Test planning inputs. Clarify how planning policy scenarios shape the Model's results. The Government's proposed planning reforms are likely to affect assumptions about land-use for housing and employment.

This investment in maintaining, enhancing, and building confidence in the Economy Model will prepare Highways England for a more substantial review of economic modelling requirements from 2022/23.