Unlock Editor’s Digest Lock for Free
The minister quietly cut UK road construction and repair budgets next year, with the £4.8 billion funding pot for major highways being about 5% lower than the current allocation.
Ir Keir Starmer declared that the amount announced last week in the National Highways “delivering a critical road scheme” by “keeping the major roads across the country to drive the UK.”
However, the 2025-26 figures are lower than the £5.07 billion received for the current fiscal year, according to details posted in the agency’s budget, industry figures say.
National highways, previously known as highways England, dealing with major roads, usually receive funds for a five-year regulatory period set by the transport sector. The current five years will end at the end of this month, but the next period will not begin until April 2026. £4.8 billion was a one-year settlement to close the gap.
One government official admitted that the 2024-25 figures are higher than next year’s figures, but he stressed that the £4.8 billion figure is higher than the average £4.6 billion from the programme for the next five years.
“The scheme is in different stages of delivery, so funds fluctuate from year to year,” he said.
The Transportation Department also highlighted the £4.6 billion figure, saying, “The interim funding is to advance existing road schemes such as the A428 black cat.”
“We are committed to providing road infrastructure that increases growth and connectivity, and are working on our next multi-year road investment strategy for a long-term approach to achieving this.”
Ministers also announced a “record” £1.6 billion fund this week for the council to help revise local potholes. Ministry of Transport officials said this was more generous than in the past few years, but they were unable to provide comparable data due to the method of calculation of the numbers.
Vicki Slade, a liberal Democratic local government spokesman, called the “cut” the “budget” for the national highway.
She said: “Our paths are falling apart and we are in the middle of a pothole pandemic. Conservatives have cut funds for our transport and maintenance work. The labour government seems to follow the horrifying records of conservatives and hope that no one will notice.”
Recommended
Noble Francis, head of economics at the Construction Products Association, said road construction has been declining over the past three years and the industry is hoping for another fall this year after the government delayed its planned road investment strategy and cut projects including the Stonehenge Tunnel in its final budget.
“The government continues to talk about investment and growth, but reducing road projects is not the way to provide that. What you need is government investment that gives the private sector confidence to invest in employment and innovation,” he said.
Steve Greister, a transport professor at Imperial College, said he was disappointed with the cuts considering the roads carry 90% and 90% of British cargo.
“A properly selected road scheme offers some of the most productive investments available,” he said. “Crowd and poor road maintenance have been causing great damage to economic growth, but both this government and its previous one have slowed its five-year road strategy and threatened confidence.”
The AA said private drivers donate £430 billion a year to the Treasury, according to its calculations.
“It creates hauling efficiency and therefore UK businesses as it does not cancel road projects and reduces traffic hits. It is at odds with the government’s ambitions to improve economic growth.”