Private finance could unlock road schemes – but who carries the risk?
Summary
The article discusses the Highways (Financing) Bill, which would allow private finance to support major strategic road schemes in England through a regulated asset base model overseen by the Office of Rail and Road. It argues that the approach could reduce funding constraints and improve delivery certainty, but only if risk is allocated fairly and regulation is robust.
Why it matters
While the focus is on highways, the piece is relevant to surveyors because it highlights how large infrastructure funding models, planning delays and risk transfer can affect the wider construction and property sectors. It also signals potential implications for land assembly, scheme viability and supply-chain risk on major projects.
Key points
- Highways (Financing) Bill would let a licensed company build, operate and maintain a strategic road in England.
- The model uses a regulated asset base framework, with the ORR setting allowed returns and overseeing enforcement.
- Lower Thames Crossing is identified as the first likely scheme under the proposed approach.
- The article stresses the need for fair risk allocation to avoid pushing excessive risk down the supply chain.
- The government says it does not plan to toll currently free roads, and licences would be published and consulted on.
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