STORY
The Competition and Markets Authority has called for an overhaul of public road and rail procurement after warning that fragmented and short-term approaches are increasing costs, slowing delivery and limiting innovation in major infrastructure projects.
The regulator’s market study into public road and rail civil engineering said around £19 billion of taxpayers’ money was spent on public road and railway infrastructure in 2023/24, excluding High Speed 2. It said long-standing problems in the market included funding uncertainty, short-term decision-making, complex regulation and gaps in public-sector procurement capability.
The CMA said external research highlighted in its report suggested that UK and devolved Governments could potentially save up to £5 billion a year by addressing weaknesses in the sector. It recommended that the Treasury take strategic ownership of system-wide reform, with a clear sector plan, more credible long-term project pipelines, multi-year funding and procurement designed around long-term value rather than short-term cost.