The Government will put forward a Lower Thames Crossing [Highways (Financing) Bill] to introduce 'a new Regulated Asset Base (RAB) funding model to unlock greater levels of private capital investment in road infrastructure', the King's Speech today confirmed.

The Government expects that the Lower Thames Crossing will be the first road scheme to use this new RAB model. 

Ministers said the Bill will:

  • Introduce a licence regime to allow private companies, as licence holders, to deliver key road schemes to improve the road network. The Bill will set out the powers and responsibilities of the licence holders.
  • Name an independent regulator to provide strong oversight of licence holders, to ensure that the infrastructure built under this model remains well maintained, efficiently managed, and provided at a fair and proportionate cost to users.
  • Introduce backstop measures to protect vital publicly used assets managed under the model, helping ensure that the roads remain open even if the private company fails.

By establishing an independent regulator as part of the RAB model, 'the Government can ensure transparency in operations, clear performance standards, and protection for users', officials said.

If the regulated company does not meet the standards required, the regulator can take enforcement actions – for example, by issuing the company with penalties or ultimately by revoking its licence to operate the road.

The Government added that the model: 'Has been successfully used in sectors like energy and aviation - most recently, it has been used on projects such as the Thames Tideway Tunnel and the Sizewell C nuclear project. Applying the lessons learned from those projects will enable the model to work even better in the roads sector.'

The King's Speech outlined prime minister Keir Starmer's new legislative agenda following his brutal local election results last week, which resulted in a major political shift away from Labour and Conservatives towards Reform and Green, and left the PM's leadership on the brink of collapse.

Infrastructure made up a key element of the programme, framed within the wider context of 'economic security'.  

The King's Speech read: 'The United Kingdom's economic security depends upon world class infrastructure. Legislation will be introduced to unlock the benefits of airport expansion [Civil Aviation Bill]; enable roads to be built at pace including the Lower Thames Crossing [Highways (Financing) Bill]; and deliver a fair deal for the North of England through Northern Powerhouse Rail [Northern Powerhouse Rail Bill].

'My Ministers will continue to take all action necessary to safeguard the domestic production of steel [Steel Industry (Nationalisation) Bill].'

The Highways (Financing) Bill 'enables the delivery of schemes through private investment, reducing the financial burden on taxpayers while ensuring strong regulatory oversight to protect the interests of users', the Government argued in its accompanying briefing documents.

The Bill will extend to England and Wales, and apply to England only.