Source · National Audit Office

Road enhancements: progress with the second road investment strategy (2020 to 2025)

This report examines how effectively National Highways and DfT are managing risks to value for money across the portfolio of road enhancement projects.

Published: 25 Nov 2022 Recommendations: 8 Type: Value for Money NAO confirmed: 8 Department: Department for Transport
Dept: Department for Transport Topics: Driving and road transportTransport nao.org.uk →

Recommendations

8 items
8 accepted 8 implemented

Recommendation 1

Addressee: Department for Transport; National Highways · Source location: Page 11, a

National Highways and DfT, working with HM Treasury, should develop a response to current inflationary pressures that ensures stability for the portfolio.

Response position: Accepted

Delivery: Implemented · Q3 2024-25 · Confirmed by NAO

Recommendation 2

Addressee: Department for Transport · Source location: Page 11, b

DfT should work with other government departments to ensure a streamlined approach to updating and regularly reviewing the framework against which development consent applications are appraised. This will help maintain alignment with wider government policies and allow applications to be prepared more efficiently.

Response position: Accepted

Delivery: Implemented · Q1 2024-25 · Confirmed by NAO

Recommendation 3

Addressee: Department for Transport; National Highways · Source location: Page 11, c

In their reporting of how National Highways has performed against what it originally planned to deliver in each road strategy, and against revised delivery targets, National Highways and DfT should set out the implications of changes made to the portfolio on expected outcomes and benefits for each road strategy.

Response position: Accepted

Delivery: Implemented · Q2 2025-26 · Confirmed by NAO

Recommendation 4

Addressee: Department for Transport; National Highways · Source location: Page 11, d, bullet 1

In preparing for the third road investment strategy, DfT and National Highways should:
review the projects that are planned for the third road strategy (from April 2025),to ensure the portfolio collectively remains feasible, meets strategic needs and
is value for money;

Response position: Accepted

Delivery: Implemented · Q4 2025-26 · Confirmed by NAO

Recommendation 5

Addressee: Department for Transport; National Highways · Source location: Page 11, d, bullet 2

In preparing for the third road investment strategy, DfT and National Highways should:
assess the feasibility and affordability of including new enhancements in the third road strategy. Doing so will require determination from HM Treasury of the expected funding envelope;

Response position: Accepted

Delivery: Implemented · Q4 2025-26 · Confirmed by NAO

Recommendation 6

Addressee: Department for Transport; National Highways · Source location: Page 11, d, bullet 3

In preparing for the third road investment strategy, DfT and National Highways should:
regularly update the estimated cost of the work planned for the third road strategy during development of the delivery plan.

Response position: Accepted

Delivery: Implemented · Q4 2025-26 · Confirmed by NAO

Recommendation 7

Addressee: Department for Transport; National Highways · Source location: Page 11, d, bullet 4

In preparing for the third road investment strategy, DfT and National Highways should:
further improvements to National Highways? approach to monitoring and managing portfolio risks. This should include: improvements to the iterative monitoring of the risks identified during development of the road strategy to understand how risks change based on up-to-date information; and an integrated assessment of risks where they are considered together.

Response position: Accepted

Delivery: Implemented · Q4 2025-26 · Confirmed by NAO

Recommendation 8

Addressee: Department for Transport; National Highways · Source location: Page 11, d, bullet 5

In preparing for the third road investment strategy, DfT and National Highways should:
improve the robustness of governance arrangements surrounding the contingency budget to ensure it is used in the way intended.

Response position: Accepted

Delivery: Implemented · Q4 2025-26 · Confirmed by NAO