By Richard Johnstone | 30 April 2014
Transport Secretary Patrick McLoughlin today approved reforms to the Highways Agency that will establish the operator of England’s strategic road network as a standalone company.
The government announced last July that it would reform the agency so it was given independence from the Department for Transport, where it is currently an executive agency.
From next April, the agency will be a separate state-owned firm and given a long-term funding agreement for maintenance and upgrades to 2021, similar to the funding allocations made between government and Network Rail.
McLoughlin said Whitehall had committed more than £24bn to upgrade England’s strategic road network between 2010 and 2021.
The reform will save £2.6bn over ten years by locking in government funding for road repairs and enhancements, ending what McLoughlin called the ‘stop-start’ processes of funding being determined at Spending Reviews and Budgets.
‘Our road network is an incredibly important national asset, but it has been neglected,’ he added.
‘This government has committed to the biggest ever investment in our roads but it is vital we have the right foundations in place to make sure this huge amount of money is spent in the most efficient way.
‘The reformed Highways Agency will be more transparent and more accountable, driving down costs as it increases efficiency. This means taxpayers get a better deal and road users get a network that is fit for the future economic demands of this country, helping to create more jobs and support business growth.’
As part of the new regime, the government is also setting up two new bodies to hold the company to account.
One will be tasked with protecting the interests of motorists and other road users, and will form part of Passenger Focus, which currently protects passenger interests on the railway.
Scrutiny of the agency’s costs and performance will be undertaken by a new unit to be based within the Office of Rail Regulation, indicatively named the Strategic Road Network Monitor, including the appointment of a new executive director to the watchdog’s board.
