PRESS RELEASE

New road’s true costs hidden by National Highways

Transport Action Network (TAN) [1] is shocked at the announcement today giving the go-ahead of the M3 Junction 9, another scheme in the South East. Costs have rocketed in just over two years, up by over a third, from £215m to £290m [2], despite there being no legal challenge. The scheme is claimed to enable 2,000 new homes but that works out at £145,000 per home; a very expensive way of encouraging more housebuilding [3]. The other concern is that this is yet another subsidy for road hauliers which will undermine rail freight from the Port of Southampton.

The scheme was objected to by the South Downs National Park Authority but at no point have there been any legal challenges to delay the scheme. The cost increase is down to National Highways as inflation and risk were supposedly factored into the original costings.

Chris Todd, director of Transport Action Network said:

“The original figures presented to the Examination and the Secretary of State included inflation and other risks. So why have costs shot up by over a third to £290m in only two years? It can only be that National Highways is hiding the true cost of its schemes in order to get them approved, or is incredibly bad at its job. Either way it is a damning indictment of National Highways and illustrates why it should be scrapped.

“In this instance there were no legal challenges for the government to blame and the scheme’s already questionable business case should have meant it was binned. It is therefore disappointing to see Labour greenlighting this dubious road investment.

“It is National Highways’ incompetence or scheming that is blocking smarter and more inclusive investment which would lead to a stronger economy. The cost increases seen here will deny much needed investment in road maintenance or public transport elsewhere.”

– ENDS –

Notes to Editors:

[1] TAN was set up five years’ ago by director, Chris Todd to help communities press for better (more sustainable) transport. We support more investment in bus and rail services and active travel. To enable this and better roads maintenance (fewer potholes) we continue to oppose the previous government’s damaging roads programme. We also support better integration between transport and planning.

[2] National Highways’ funding statement submitted to the M3 J9 Examination, dated November 2022 states:

“The Scheme has a most-likely estimate of £215 million, including allowances for risk and inflation at the date of application. This estimate includes all costs to deliver the Scheme from Options stages through to the opening for traffic.”

Yet just over 2 years later the cost has risen to £290m as stated in today’s press release from the government

This represents a rise of 35% in just over two years.

[3] £290,000,000 / 2,000 = £145,000 cost per house