King’s Speech 2026: Highways investment model set for major reform to unlock road infrastructure delivery

Image: Gov UK

The 2026 King’s Speech has placed UK transport infrastructure firmly in the spotlight, with a significant policy shift aimed at accelerating the delivery of major road schemes.

Central to the highways agenda is a new funding and delivery approach designed to unlock private investment and speed up construction of large-scale road projects across the country.

As pressure grows to modernise ageing infrastructure and support economic growth, the Government has set out plans for a Highways (Financing) Bill that could reshape how strategic roads are funded, built and managed in the UK.

Highways (Financing) Bill: A New Era for Road Investment

A key announcement within the legislative programme is the introduction of a Highways (Financing) Bill, which will establish a new model for financing major road infrastructure.

The Bill is expected to introduce a Regulated Asset Base (RAB) funding model, enabling greater private sector investment in large-scale highway projects. This approach allows infrastructure developers to recover costs over time through regulated returns, helping to reduce upfront public funding pressures while improving delivery certainty for long-term schemes.

One of the first schemes expected to benefit from this model is the Lower Thames Crossing, a strategically significant project aimed at improving freight movement and easing congestion in the South East.

According to government briefings, the reforms are intended to accelerate delivery, improve investor confidence, and provide a more stable pipeline for nationally significant road schemes.

Unlocking Private Capital for Strategic Road Schemes

The shift towards a RAB-style model marks a notable evolution in UK infrastructure financing policy. By encouraging institutional and private capital into highways development, the Government aims to bridge long-standing funding gaps that have slowed progress on major transport schemes.

Industry observers suggest this model could help bring forward delayed projects, particularly those requiring complex delivery structures and long-term investment horizons.

The financing framework is also designed to provide greater certainty for investors, potentially reducing risk premiums and improving the attractiveness of UK road infrastructure in global capital markets.

Faster Delivery of Nationally Significant Infrastructure

The Highways (Financing) Bill is part of a broader ambition to streamline infrastructure delivery. The Government has indicated that planning and consenting processes for major road schemes will be simplified to support faster project mobilisation.

This aligns with wider infrastructure reform efforts aimed at reducing delays in nationally significant projects, including transport, energy and utilities development.

For the highways sector, this could translate into:

• Shorter project lead-in times
• Improved pipeline visibility for contractors and suppliers
• Greater alignment between planning, funding and delivery frameworks
• Increased certainty for long-term asset investment

Lower Thames Crossing at the Centre of Delivery Reform

The Lower Thames Crossing has been identified as a flagship scheme under the new financing approach. As one of the UK’s most significant planned road projects, it is expected to act as a testing ground for the RAB model in the highways sector.

If successful, the approach could be replicated across other major strategic road programmes, potentially reshaping how National Highways and its partners deliver future schemes.

Industry Implications for Highways and Construction

The proposed reforms carry wide-ranging implications for the UK highways and civil engineering sector. Contractors, consultants, and infrastructure investors are likely to see both opportunities and challenges arising from the shift in funding structure.

Key implications include:

• Increased role for private finance in public road schemes
• Greater emphasis on lifecycle value and long-term asset performance
• Potential restructuring of procurement and delivery models
• Stronger integration between public authorities and private capital providers

While the model is expected to unlock investment, industry stakeholders will be closely watching how risk is allocated between government, regulators, and private investors.