UK advances private funding for roads as business groups warn of fuel-duty decline

The UK government is advancing the Highways Financing Bill, which aims to utilize private investment for major infrastructure projects to reduce the burden on taxpayers. The Lower Thames Crossing is the first confirmed project expected to use this new financing model. Construction has already commenced for the project, which involves connecting Kent and Essex via twin tunnels beneath the River Thames to ease congestion at the Dartford Crossing. The Office of Rail and Road (ORR) will oversee tolling to ensure transparent and balanced caps.

Simultaneously, seven business organizations, including the Road Haulage Association and Logistics UK, have formed the Road Pricing Coalition. The group launched to address the projected decline in fuel-duty revenues as vehicle electrification increases. With fuel-duty receipts expected to halve during the 2030s, the coalition is urging the government to consider long-term road-use taxation strategies ahead of the upcoming Budget.