The Highways (Financing) Bill returned to Parliament for its second reading on 15 October. So far, the Lower Thames Crossing is the only confirmed project expected to use the new private finance model the Bill sets out.
Funding major roads through private licences
The Bill allows private companies to finance, build and operate major roads on England’s strategic network. This applies to trunk roads managed by National Highways.
Under the Bill, private sector firms could obtain licences authorising them to introduce tolls in exchange for investment. The Department for Transport says this model seeks to bring in private capital to deliver large road projects, reducing reliance on taxpayer funding.
Toll regulation and limits
The Office of Rail and Road (ORR) would regulate any tolls introduced. Tolls would be capped based on the level of private investment, notably for the Lower Thames Crossing.
The DfT emphasises that tolls will remain rare and only be used in exceptional cases. It states that most roads in England will stay toll-free, with no plans to extend tolling broadly.
The Lower Thames Crossing as the pilot project
The Lower Thames Crossing will link Kent and Essex with twin tunnels beneath the River Thames. Construction has begun north and south of the river, and the largest tunnelling machine in Europe has been ordered to support excavation.
Current government funding covers delivery until 2028. Private investment is expected to complete construction by the mid-2030s. Private finance and toll revenue would then support ongoing operations and maintenance.
Industry and government perspective
Roads Minister Justin Madders highlighted the role of private investment in speeding up vital upgrades without increasing taxes for the public. He said it will help end delays on key schemes like the Lower Thames Crossing.
Matt Palmer, chief executive of the Lower Thames Crossing, said the ongoing construction and equipment orders demonstrate tangible progress. He described the Bill’s second reading as a signal of momentum for the project.
The Road Haulage Association welcomed progress but stressed caution. Its policy director, Declan Pang, said new financing approaches must consider impacts on freight operators alongside capacity benefits.
Next steps unknown
The Bill’s further progress through Parliament and any additional schemes nominated for the private finance model remain unconfirmed. The result of the second reading had not been published at the time of writing.
An earlier explainer on the Bill details wider powers, including the possibility for a private company to act as highway authority on sections of the road network.
