CBI Report calls for Regulatory Asset Base model for future funding of road procurement

The CBI is calling for the introduction of a Regulatory Asset Base (RAB) model to secure the private investment necessary to overcome the current funding gaps in the UK’s road network. A £10bn shortfall in funding for Highways Agency projects and the prospect of declining motoring tax revenue due to ever-increasing efficiencies in new vehicles makes the current model unsustainable.

A regulated model for the road network would address the problem of long-term funding and one year cycles by taking the road network out of the Government’s budget. Users would have a proportion of their motoring taxes converted to a user charge – controlled by the regulator – to access the strategic road network. This charge would provide a funding stream for private operators – licenced by the regulator – who would operate regional sections of the network.
Heidi Mottram OBE, CEO of Northumbrian Water Ltd and Regional Chair for CBI North East:

“The RAB model has secured significant levels of investment for Northumbrian Water and has helped to drive improved services for our customers. As a business that depends on our roads every day to manage our network and offer good customer service, we expect the same high quality operation from our road network.

“We welcome the Government’s feasibility study on the governance and funding arrangements of the future road network and this report provides valuable input to the debate.”

The full text of the CBI Report is here:


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