Millions of drivers could benefit from quicker journeys and less
time stuck in traffic under plans to unlock private investment
for major road projects, as the Highways Financing Bill returns
to Parliament today for its second reading (15 October).
Aiming to take pressure off taxpayers, the Bill will create a new
funding model to help get projects like the Lower Thames Crossing
built by bringing in private investment and will mean the general
public aren't footing the bill.
The Second Reading comes as construction works have started north
and south of the river Thames for the Lower Thames Crossing. The
largest tunnelling machine in Europe has been ordered to help
deliver this phase of the project.
The Lower Thames Crossing will improve journey times, reduce
congestion, improve connectivity for cars and freight and drive
economic growth. The Crossing aims to ease pressure off the
Dartford Crossing and will connect Kent and Essex with twin
tunnels beneath the River Thames.
This will not lead to unregulated tolls. Thanks to the Bill, the
ORR will determine balanced and transparent caps for tolls. LTC
is currently the only confirmed project expected to use the new
financing model.
Roads Minister said:
"For too long, drivers have been stuck in traffic while vital
road upgrades have been delayed.
By bringing in private investment, hardworking taxpayers won't be
left footing the bill through higher taxes, while major schemes
like the Lower Thames Crossing can finally move forward. That
means less congestion, quicker journeys and a boost for jobs and
growth across the country."
, Lower Thames Crossing CEO,
said:
With construction underway and Europe's largest tunnelling
machine on order, we're making real progress in building the
Lower Thames Crossing.
"The Bill reaching its Second Reading is another welcome sign of
momentum on this is vital project that will unlock economic
growth and make everyday journeys easier for millions of people
by tackling the chronic congestion at Dartford."
RHA Director of Policy & Public Affairs, Declan Pang
said:
"We are pleased to see the Government taking action to deliver
the Lower Thames Crossing. Reliable and resilient road
infrastructure is essential for the road haulage and coach
industry, supporting the efficient movement of goods and
passengers across the country.
"We will be interested in how the proposals develop and how the
new framework operates in practice. Any new approach to financing
major road projects must carefully consider the implications for
freight operators, alongside the benefits of improved capacity
and reduced congestion."
Notes to editors
Who will be able to invest?
The Bill creates a framework allowing private companies to invest
in road schemes. Although the companies are yet to be confirmed,
the most likely investors would be:
- Major infrastructure funds and pension funds.
- Infrastructure developers and concession operators
Will this mean more road tolls in England?
Road tolls will remain rare and these powers will only be used in
exceptional circumstances.
The vast majority of roads in England are toll-free, and we have
no plans to change that.
Although a toll will be used on the Lower Thames Crossing, we're
protecting drivers to make sure they're not paying high costs to
get from A to B.
The Bill will ensure that the Lower Thames Crossing is not fully
funded by the taxpayer, and the remainder of construction,
operations and maintenance will be paid for by private investment
and its road users.
Won't this just lead to unregulated tolls?
No, this won't lead to unregulated tolls. We're doing all we can
to protect taxpayers' pockets.
The regulator has powers to make sure any tolls under this
legislation are fair, balanced and transparent.
A licence holder, which would be the private sector company that
would be granted the opportunity to fund, construct and operate
major road projects, would not be able to introduce new tolls
without permission and any tolls introduced under this
legislation will be independently regulated.
The ORR will determine balanced and transparent caps for tolls
depending on how much funding private investors have put into the
Lower Thames Crossing.
How long will this last?
Taxpayers (who are currently financing the delivery of Lower
Thames Crossing through government funding until 2028) will no
longer be required to fund it, with private investment completing
the construction in the mid 2030s.
