Highways (Financing) Bill

House of Commons approves Bill reforming how major road-building schemes are financed

On Thursday 15 October 2026 the House of Commons debated the Highways (Financing) Bill, which will change how the Government funds major road-building projects.

The strategic road network covers 4,500 miles of highway, which, despite being less than 3% of our overall network, carries a third of cars and two-thirds of lorry miles. Demand on this network is set to increase by 12% by 2035, meaning Ministers are acting to ensure they continue to connect our ports, major cities and communities.

The model proposed by the Bill is the same used to fund the Thames Tideway tunnel and Sizewell C nuclear power plant. The Transport Minister outlined how it works by granting a licence for a specific highway project to a private investor, with the framework set in Parliament. It starts with construction, through to operation and maintenance of the road.

The Minister said the Office of Rail and Road will act as the independent economic regulator. It will have a wide range of powers in the public interest, including monitoring performance, obtaining information, issuing penalties and, if necessary, taking enforcement action and revoking a licence.

The Bill will then allow a private operator to make a regulated return on their investment. Any charges or tolls will be levied under strict conditions set out by the Office of Rail and Road. Ministers have been clear the Bill is not and will never be national road pricing by the back door, or charge motorists across the wider network. I am pleased the Government has made this commitment to ensure the Bill will only apply to new major trunk road projects.

The second major feature of the Bill is to update the legislation that governs the collection of tolls. It will allow free-flowing tolling systems which do not require vehicles to stop at traditional booths, and by allowing payment after use, they ease congestion and shorten journey times. While the Government is not mandating a particular way of collecting tolls, it allows new technologies to be adapted and creates better rules for enforcement.

Too many people, in too many places, remain held back by poor connectivity, and that each congested road, and every delayed journey, stifles productivity. I hope that drivers will appreciate these measures.

There was a vote and I voted No and the result was: Ayes: 76 and Noes: 231 

The Bill passed Second Reading and will now enter the Committee Stage, where it will be inspected line by line before it returns to the Commons.