Recommendation 5

HM Government Deferred

The Government notes this recommendation. Government assesses deliverability when setting a RIS, with independent scrutiny and assessment by the ORR. The ORR has an important role in the development of a RIS. The ORR provides independent advice to the Secretary of State during the RIS setting process and is responsible for undertaking an assessment of National Highways’ plans. This advice is intended to ascertain whether the developing proposition is both challenging and deliverable, particularly in terms of efficiency. Plans for RIS2 were reviewed externally by the ORR and the IPA undertook a delivery review. Neither the ORR nor the IPA suggested fundamental changes in the proposed approach and the balance of risk versus deliverability. Over the past eight years, National Highways has developed a strong track record of delivering transport infrastructure enhancements. Where RIS2 schemes have not been smart motorways or subject to development consent order (DCO) decision deadline extensions or legal challenge, delivery has been positive with limited slippage. To date, in Road Period 2, 20 schemes have opened for traffic, of which 95 per cent have been ahead of, or on, schedule. A further 17 schemes are in construction, having started either ahead of, or on, schedule. There have been challenges with the delivery of RIS2, notably in three areas; securing planning consents, changes associated with the Transport Select Committee’s review of smart motorways and now inflationary impacts. These have had a significant impact on the overall delivery of RIS2, both in terms of cost and schedule, however, the Government and National Highways have robust plans in place to manage these challenges. In a portfolio which contains projects at different stages of development, it is highly likely some projects will experience delays. When setting the RIS there will be some inherent risks which will materialise, but it is not possible to predict at the start exactly when or if they will materialise. By taking a portfolio approach it allows flexibility and a level of overprogramming to manage a project, which assists with effective management of risk and more efficient delivery. DCO delays have mainly been associated with legal challenges on environmental grounds. To address this, the Government and National Highways developed a joint DCO action plan to support schemes subject to the DCO process. The Secretary of State for Transport granted 10 scheme consents in 2022/23 and two re-determinations in the first half of 2023/24. Five of these consents were challenged (often on environmental grounds), with four so far successfully defended with National Highways now planning to proceed to construction at the earliest opportunity. Considering the remainder of the major enhancement portfolio, many of the larger, complex schemes inevitably have longer delivery periods and therefore run across different road periods. It would be inefficient to only have projects which start and finish within a single five-year road period, as this would result in a skewed capital spending profile of low spend in the initial years and significantly higher at the end of the road period. The Government has taken action to dedicate more resource to ensuring that projects can be completed within a reasonable window. As reported in the inquiry report, the Government increased staffing capacity and capability to manage RIS2, from 28 in the last year of RIS1 to 55 in February 2023, and identified 24 lessons learnt from RIS1 for delivering the nine Tier 1 projects. We continue to think through the investment priorities for RIS3. More details will be set out in the draft RIS3 later in 2023.