CMA to probe delivery of UK road and railway projects as costs soar
The UK’s competition watchdog will launch a review into the delivery of UK road and railway infrastructure amid widespread delays and cost overruns.
The Competition and Markets Authority (CMA) said its study would focus on “persistent issues around cost and delivery” of schemes across the country.
It comes a day after the government delayed HS2 by at least another two years and revealed the cost of the troubled high-speed line had risen by £37bn since 2012.
Ministers on Thursday unveiled a 10-year programme for delivering infrastructure in the UK, including fresh spending pledges to tackle crumbling schools, hospitals and courts.
“Upgrading the country’s economic infrastructure is essential for unlocking growth,” Darren Jones, chief secretary to the Treasury, said.
“This study will build on our 10-year infrastructure strategy and help us deliver growth with its evidence-based, independent findings.”
The review will focus on assessing if procurement, planning or other regulatory processes had created “unnecessary” barriers that limit companies’ incentive to grow the market.
It will also look at whether public authorities had access to the information needed to make reasonable decisions when running road and railway tenders.
Road and railway projects currently account for around 70 to 75 per cent of government spending on economic infrastructure, which refers to services built to keep the economy ticking such as highways and power lines.
Review a ‘crucial step’
“There’s no question that reliable, high-quality infrastructure is critical in accelerating economic growth,” Sarah Cardell, chief executive of the CMA, said.
“To achieve this, public authorities and the civil engineering sector must be able to work together to deliver projects on time, within budget and to high standards.
“This review is a crucial step in identifying barriers holding back the sector – supporting the drive to get Britain building and ensuring every penny spent is delivering value for taxpayers.”
Alasdair Reisner, chief executive at the Civil Engineering Contractors Association, said: “Civil engineering plays a vital role in all our lives, from the largest megaprojects to the smallest local schemes. But in all cases, we must strive to work with our clients to deliver outstanding and affordable results.
“We welcome the CMA’s focus on how more productive delivery of civil engineering can secure better outcomes and help the government meet its ambitions for growth.”