ORR says National Highways responded well to the challenge of operating within a shorter, one-year funding period, which required it to deliver ongoing work while also adjusting plans and preparing for a new, longer-term programme. It met nine of the 11 key performance indicators set by government for the interim period and met almost all of its capital commitments.
National Highways met targets for motorway incident clearance, network availability, road surface condition, roadworks information, delay and road user satisfaction. It met all four of its enhancement commitments, and met, or overdelivered, seven of its eight renewals output commitments.
However, ORR identifies areas where progress has not gone as planned, particularly in programmes intended to prepare National Highways for the third road investment strategy (RIS3).
The company sought funding to develop a programme of 12 large renewals schemes for delivery in RIS3. But at the end of the interim period it reported that it underspent the programme by 33%, or £37 million.
National Highways also proposed to develop 15 concrete road schemes into design stage ahead of the third road period, but only successfully developed a single scheme. The company underspent its funding for this programme by 41%, or £31 million.
The company also continued to face challenges in delivering its technology programme, missing its commitment for renewing sign technology and delivered to the lower end of its expected range for renewal of CCTV and signals.
RIS3 requires National Highways to deliver a larger and more complex renewals programme than in the second road investment strategy (RIS2), with total renewals funding increasing by more than 70%, from around £4.9 billion to around £8.4 billion.
ORR says the company did not take full advantage of the opportunities to get ready for RIS3, meaning there is an increased risk to delivery and making it more challenging for National Highways to meet its RIS3 commitments.
ORR is calling for National Highways to demonstrate how it will strengthen its planning and controls to manage the higher level of funding and activity so that it can clearly show how it is managing risks, making decisions and delivering efficiently for road users and taxpayers.
These improvements must be implemented at pace and embedded effectively across the organisation so it has the best chance to deliver the intended benefits of RIS3.
Graham Richards, Director, Planning and Performance, said:
Notes to Editors
- The Office of Rail and Road is the independent economic and safety regulator for Britain’s railways and monitor of National Highways.
- National Highways is the government-owned company responsible for operating, maintaining and improving England’s strategic road network, which comprises motorways and major A-roads.
- ORR’s annual assessment covers National Highways’ performance from April 2025 to March 2026, the interim period between the second road period and the third road period.
- The third road investment strategy, RIS3, covers April 2026 to March 2031. It sets out how government funding will support the operation, maintenance, renewal and enhancement of England’s strategic road network.