Dominic Browne Chris Ames 03 November 2023

Major road network set for £2.6bn second funding round

Major road network set for £2.6bn second funding round image
Image: norfolk.gov.uk

A promised £2.6bn for local road upgrades will be in the form of a second round of major road network (MRN) funding, it has emerged.

As part of the Government’s Network North announcement following the curtailment of HS2 last month, the Department for Transport (DfT) pledged a £1bn roads package in the North, a Midlands Road Fund worth nearly £650m, and a £1bn fund for new road schemes in southern England.

This was in addition to approximately £1.4bn to top up the Government's contribution to current schemes under the 2020-25 MRN and Large Local Majors (LLM) funding streams, from 85% to 100%, to help with cost rises.

The DfT said the £1bn for the North 'could support new schemes like the A1-A19 Hickleton Bypass in Doncaster' – a reference to what appear to be two separate local road schemes in the area.

At an industry event organised by Tarmac this week, senior DfT official Matt Eglinton said new funding totalling £4bn would include an ‘MRN2’ programme from 2025 onwards.

He added that the DfT will issue guidance on MRN2 eligibility and process next spring and clarify the position with uplifts to existing schemes ‘in due course’.

At this point, it is unclear if DfT has enough cash to pay for all the MRN and LLM schemes that it has approved, subject to final business case, under the current funding round - or if the MRN2 programme will include some of the current schemes for which insufficient cash is available.

In the meantime, the DfT will work closely on both with Sub-National Transport bodies, who were originally asked to submit bids for MRN/LLM schemes on behalf of highway authorities in their areas.

Both MRN and LLM schemes are currently funded through the 2020-25 National Roads Fund, which is nominally paid for by hypothecated Vehicle Excise Duty (VED).

As Highways has reported, the Treasury has declined to say whether VED hypothecation will continue after 2025.

This article first appeared on Highways.

SIGN UP
For your free daily news bulletin
Highways jobs

Adults Social Worker - West Essex (Expression of Interest)

Essex County Council
£36124 - £51834 per annum + Flexible Working, Hybrid
Register your interest here to be notified of upcoming Social Worker opportunities within Essex County Council's Adult Social Care services in West E England, Essex, Harlow
Recuriter: Essex County Council

Executive Director Finance and Resources

Westminster City Council
£168,135 to £230,985
Westminster City Council is no ordinary local authority. City of Westminster, London (Greater)
Recuriter: Westminster City Council

Assistant Director – Regulatory Services

Derbyshire County Council
£71,202 - £77,495 per annum - plus benefits package
Derbyshire is a county of proud communities, beautiful landscapes and ambitious growth. Derbyshire
Recuriter: Derbyshire County Council

Director of Law and Governance

Southwark Council
Up to £150,000
Southwark is a vibrant, diverse London borough with a strong community identity. Southwark, London (Greater)
Recuriter: Southwark Council

Director of Organisational Strategy and Digital

Wiltshire Council
£123,211 - £131,206
Wiltshire is a county like no other, stunning countryside, vibrant market towns and deep-rooted heritage, it offers an exceptional quality of life. Wiltshire
Recuriter: Wiltshire Council
Linkedin Banner