Runaway road and rail costs trigger investigation

Telegraph

20-06-2025

An investigation into Britain's roads and railways has been launched as regulators attempt to tackle runaway costs and lengthy delays.
The Competition and Markets Authority (CMA) unveiled details of the review on Thursday, which has been prompted by widespread frustration about the state of troubled infrastructure projects such as HS2.
The main purpose of the inquiry will be to examine how cheaper infrastructure can be built, while also exploring the way in which public and private sectors work together.
The study is expected to take 10 months, with initial findings published in November.
While it will not give the CMA powers to intervene in the market, it will result in recommendations to the Government.
It comes after a report published in 2023 by campaign group Britain Remade found that the UK was spending up to eight times more on road and railway upgrades than other European countries.
The 2023 study said red tape in the planning sector was largely to blame for the overspend, while it also singled out the impact of Nimby campaigners.
'Appalling mess'
Britain's ailing infrastructure was thrust into the spotlight once again this week when ministers admitted the HS2 high-speed rail project is facing fresh delays beyond its most recent target opening date of 2033.
Heidi Alexander, the Transport Secretary, branded the project an 'appalling mess' after warnings in June last year that its costs could balloon to £66bn.
This will make it one of the most expensive railway lines in the world, she added, despite a major scaling back of the project that saw planned routes to Manchester and Leeds scrapped.
Hinkley Point C and Sizewell C – two major nuclear power plant projects – are also running significantly late and over budget.
The CMA will not include HS2 in its study as the rail project has already been subject to multiple reviews. However, the watchdog said it will consider the full lifecycle of roads and railways, including their enhancement and maintenance.
It comes after the National Infrastructure Commission estimated that public and private sector investment will need to increase by up to 50pc over the next decade to deliver more complex infrastructure.
Road and railway projects account for between 70pc and 75pc of government spending on economic infrastructure, while the civil engineering sector as a whole added £23bn to the UK economy in 2023.
'Decade of national renewal'
Sarah Cardell, CMA chief executive, said: 'There's no question that reliable, high-quality infrastructure is critical in accelerating economic growth. To achieve this, public authorities and the civil engineering sector must be able to work together to deliver projects on time, within budget and to high standards.
'This review is a crucial step in identifying barriers holding back the sector – supporting the drive to get Britain building and ensuring every penny spent is delivering value for taxpayers.'
Details of the review have been announced after the Government published its 10-year infrastructure strategy, which earmarked £725bn in funding for maintenance and major projects over the next decade.
Rachel Reeves, the Chancellor, said: 'Infrastructure is crucial to unlocking growth across the country, but for too long investment has been squeezed. Crumbling public buildings are a sign of the decay that has seeped into our everyday lives because of a total failure to plan and invest.
'We're not just fixing buildings – we're enhancing public services, improving lives and creating the conditions for sustainable economic growth in communities throughout the UK.
'This will deliver the decade of national renewal we promised Britain, and fulfil our Plan for Change goals to kickstart economic growth, and build an NHS fit for the future.'