Back to Investment overviewNational Highways was set up as a government-owned company in 2015, under the Infrastructure Act 2015. It has statutory duties to manage, operate and improve the strategic road network (SRN) – i.e. the 4,500 miles of motorways and major A-roads in England.
Under the Infrastructure Act, the government periodically sets the Road Investment Strategy (RIS), which is a multi-year investment plan for operating, maintaining, renewing and enhancing the SRN. More than a decade on, this continues to deliver the intended benefits that started in the first five-year road period (RP1, 2015 to 2020) and were built on in the second five-year road period (RP2, 2020 to 2025) and the Interim Year (2025 to 2026).
This is important for the public and businesses: a third of all motorised traffic and over two-thirds of lorry miles in England are driven on the motorways and main A-roads of the SRN. A high-performing, safe, reliable network is vital to maintaining and supporting growth of the economy and will continue to be so in the future.
In the third five-year road period (RP3, 2026 to 2031) more is being asked of the SRN. The network continues to age and is required to withstand the increasing and diverse impacts of climate change and increase in traffic.
One of the main challenges for National Highways in RP3 will be a greater focus on the delivery of renewals, as the balance of investment shifts away from enhancements. This is both timely and necessary because a large proportion of the road network is deteriorating significantly.
The scale of renewals investment will be bigger than previous road periods and includes high value, strategic, projects that will be disruptive for users. This portfolio will bring challenges in managing complex delivery programmes on the SRN that also still needs to carry large daily traffic volumes.
ORR has two main legal duties, established as part of Roads Reform:
- monitoring how National Highways is carrying out its functions. This may include investigating, publishing reports, giving advice to the Secretary of State and directing the company to provide information; and
- determining whether National Highways is compliant with the RIS and statutory directions and guidance (SD&G), including the company’s licence, set by government.
If ORR finds that National Highways is non-compliant with the RIS and/or SD&G we can take enforcement action in the form of issuing a notice and/or a fine.
ORR also has a role advising government on the specification for future road periods. This is largely by assessing National Highways’ draft Strategic Business Plan for challenge and deliverability.
ORR does not regulate or assure National Highways’ contracting with the private sector to deliver works. But where possible systemic risks or issues appear, ORR may look into whether there are common causes – for example with the company’s procurement, contracting and supply chain management.
Between 2015/16 and 2024/25, National Highways spent approximately £45bn with the private sector. There are three types of contracts that the company promotes and manages:
| Contract name | Value (ex-VAT) | Timeframe |
|---|---|---|
| Scheme Delivery Framework 2 (SDF2, currently out to tender) The SDF2 framework will focus on scheme delivery that renews and maintains existing assets, with a strong emphasis on collaboration, standardisation, and productivity. It aims to focus spending on long-term asset improvements & renewals. SDF2 will be an enabled framework to facilitate usage by Lower Thames Crossing (LTC) and Maintenance and Response (M&R) suppliers. | £14.5 billion | Eight years (September 2027 to September 2035) |
| Maintenance & Response Contracts (tender process due to commence July 2027) M&R Contracts undertake cyclical and reactive maintenance, incident response, severe weather, operational roadside technology, and asset renewal works. | £8 billion | Nine years (March 2028 to February 2036; possible extension to February 2037) |
| Specialist Professional & Technical Services (SPaTS) contracts (recently awarded – July 2025) The latest (third) SPaTS framework was awarded to six major firms. The framework provides technical, sustainable, and strategic expertise, covering 26 specialist disciplines such as geotechnical and pavement engineering, asset management, intelligent transport systems, environmental consultancy, and strategic infrastructure planning. | £495 million | Six years (from 2026 to 2031) |
ORR provides further information about their various responsibilities in monitoring and enforcing the performance and efficiency of National Highways, including performance dashboards, benchmarking data, and annual assessments. Further information about investment opportunities is also available through the National Highways website and publications relating to the UK Government’s Road Investment Strategy.
