£25bn for RIS2 but PFI ban could cost Highways England

29/10/2018 | CHRIS AMES

The chancellor has announced £25bn for the second Road Investment Strategy, although a large chunk of this may now be needed to pay for two Highways England projects costing over £8bn after Philip Hammond banned new private finance initiative (PFI) schemes.

In the Budget, Mr Hammond confirmed that the Government will deliver its commitment to hypothecate English Vehicle Excise Duty to roads spending through the National Roads Fund, which will be worth £28.8bn from 2020 to 2025.

The Treasury said the Govermment expects to spend £25.3 billion on the second Road Investment Strategy 2020-25 (RIS2), funded by the National Roads Fund.

The remainder of the cash (£3.5bn) will pay for the new major roads network and large local major roads schemes.

However, Mr Hammond also announced that he will abolish the use of PFI and PF2 for future schemes, although the Government will honour existing contracts.

The move is likely to be seen as a response to the collapse of Carillion earlier this year. Mr Hammond said: ‘The days of the public sector being a pushover must end.’

The Treasury said RIS2 would ‘enable the Government to…progress transformative projects like the A66 Trans-Pennine, the Oxford Cambridge Expressway, and the Lower Thames Crossing’.

In April, the Treasury confirmed that it expected both the Lower Thames Crossing, now slated to cost up to £6.8bn, and the £1.6bn A303 Stonehenge tunnel to be financed through PF2.

In August, the Department for Transport (DfT) told Transport Network that the private financing of the Stonehenge scheme would allow it to invest the capital that is no longer needed on other important strategic road schemes.

Highways England and the DfT referred enquiries to the Treasury.

A Treasury spokesman told Transport Network that the Government remains committed to the schemes ‘subject to business case’ and that the financing of the schemes was not a determining factor in the decision to proceed with them.

He could not however confirm whether the schemes would be funded out of the £25bn for RIS2, but said that announcements on the detail of the strategy would be made ‘in due course’.

 

Highways InProfile

latest magazine issue
Highways jobs

Project Lead - Bridges and Structures WMF3037e

£45,718 to £46,731
We are currently seeking to recruit a Project Lead to join our Bridges and Structures team Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Traffic Management Technician - WMF3040e

£27,711 - £28,624
Are you an organised and motivated individual who wants to make a difference to how our roads are managed? Cumbria / Various
Recruiter: Westmorland and Furness Council

Traffic Management Officer - WMF2114e

£37,035 - £37,938
Are you an experienced and motivated professional looking to take the next step in your traffic management career? Cumbria / Various
Recruiter: Westmorland and Furness Council

Senior Transport Planner

£47,532 - £50,574
Royal Greenwich is a borough synonymous with first class modern services Greenwich, London (Greater)
Recruiter: Royal Borough of Greenwich

Technician - Highway Inspector

Grade 8 £28,797 - £30,708 per annum (Pay Award Pending)
Within the Highways Maintenance Team we are looking for an enthusiastic, customer focused and experienced person to join the Service Derbyshire
Recruiter: Derbyshire County Council

Project Delivery Senior Team Leader

£74,480 - £85,964
Are you an experienced Chartered Civil Engineer (or equivalent professional qualification) Glasgow City
Recruiter: Transport Scotland

Assistant Traffic Management Technician - WMF2104e

£25,584 - £25,992
Westmorland and Furness Council is seeking an organised and enthusiastic individual to join our South Lakeland team Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Bulky Operative

£25,584.00 - £27,269.00, Grade 5, 37 hours, Permanent.
An opportunity exists in the Council’s Street Scene Services for a Bulky Operative Wakefield, West Yorkshire
Recruiter: Wakefield Council

Project Delivery Team Leader

£57,710 - £71,842
Are you an experienced Chartered Civil Engineer (or equivalent professional qualification). Glasgow City
Recruiter: Transport Scotland

Traffic Management Officer - WMF2102e

£37,035 - £37,938
This is a key role supporting the delivery a wide range of traffic and road safety schemes. Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Shared Service Manager (Waste) North Herts Council

£52000 - £61000 per annum
Shared Service Manager (Waste) North Herts CouncilNorth Herts CouncilPermanent, Full Time£52,866 - £61,866 per annum, plus car allowance (pay award pe England, Hertfordshire, Letchworth Garden City
Recruiter: Essex County Council

Traffic Management Officer - WMF2102e

£37,035 - £37,938
This is a key role supporting the delivery a wide range of traffic and road safety schemes. Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Assistant Traffic Management Technician - WMF2104e

£25,584 - £25,992
This is a key support role, helping to deliver a wide range of traffic and road safety schemes across South Lakeland. Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Flood Risk Engineering and Strategy Officer

£49,764 - £55,623
In line with our One Coventry Values, we want to ensure that our communities are represented across our workforce Coventry, West Midlands
Recruiter: Coventry City Council

Senior Integrated Transport Officer

£34,324 - £37,529
Are you an experienced transport planning professional ready to influence strategic policy and drive real change Matlock, Derbyshire
Recruiter: Derbyshire County Council

Roadworker Trainee LGV Driver (3 Posts)

Grade 6 £25,183 - £25,638 per annum (Pay award pending)
We’re looking for Roadworker/trainee LGV drivers to be part of our team undertaking major highway, bridge and related construction and reconstruction Derbyshire
Recruiter: Derbyshire County Council

Engineer

£44,430 - £51,663
This post is within the Highways Design and Delivery Team. London (Greater)
Recruiter: Tower Hamlets London Borough Council

Civil Enforcement Officer - WMF3013e

£27,711 -£28,624
Are you seeking an active and challenging role, part of a friendly and welcoming team? Cumbria / Various
Recruiter: Westmorland and Furness Council

UGO Bus Driver

Up to £25081.00 per annum
UGO Bus DriverPermanent, Part TimeUp to £25,081 per annum (full time equivalent)Location
Recruiter: Essex County Council

Head of Highways Operations

Salary
Somerset Council
Recruiter: Somerset Council
SUBSCRIBE NOW

Latest Video

Subscribe to Highways today to ensure you keep your finger on the pulse of everything happening in the UK road network throughout the year.

SUBSCRIBE NOW