National Highways to deliver fewer projects due to inflation and delays

A new report into progress of National Highways’ second road investment strategy has warned that by 2025, the Government-owned company will have completed less work and at a higher cost than originally planned.

The National Audit Office has examined how effectively National Highways and the Department for Transport are managing risks to value for money across the portfolio of road enhancement projects. 

About its report “Road enhancements: progress with the second road investment strategy (2020 to 2025)” the NAO writes that some change is expected when delivering a portfolio of projects, but there has been more change than anticipated. But it adds that at the same time, National Highways and DfT could have done more to plan for and manage the potential risks to their portfolio of enhancement work.

“In recent months, inflationary cost pressures have risen beyond levels that could have been anticipated by National Highways and DfT, who will face difficult decisions about how to prioritise work,” it says.

The NAO suggests National Highways and DfT should seek to improve the planning and management of their portfolio of enhancement projects to ensure they optimise value for the taxpayer, and avoid delays and costs further increasing the pressure on the next road strategy.

Read the full report here.

(Picture – National Highways)


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