Birmingham Highways Infrastructure Private Finance Initiative

Lord Snape Excerpts

Tuesday 28th November 2023 Lords Chamber

Asked by

[Lord Snape]

To ask His Majesty’s Government when they expect to conclude the review of the 2010 funding agreement for Birmingham City Council’s Highways Infrastructure Private Finance Initiative; and whether they intend to honour the agreement to continue funding the PFI until 2035.

[The Parliamentary Under-Secretary of State, Department for Transport (Lord Davies of Gower) (Con)]

My Lords, the Government are currently considering the business case for a revised contract for Birmingham highways maintenance following the failure of Birmingham’s original PFI deal. Highways maintenance is a critical and statutory function for all local authorities and the Government will continue to support them to fulfil this function. A decision is expected imminently.

[Lord Snape (Lab)]

My Lords, while I am grateful for the response and it reflects great credit on the Minister—I congratulate him on his new appointment—this matter has been dragging on for many years. The original contract was signed in 2010. The Department for Transport supported the city council in the removal of the contractor in 2019, but when will the Government approve the full business case and pay up the £50 million a year which they committed to do when the original contract was signed back in 2010?

[Lord Davies of Gower (Con)]

I thank the noble Lord for that supplementary. The Government recognise that the delay in reaching a decision is far from ideal and is causing challenges for the council. I am sure noble Lords will appreciate that this a big investment decision that needs to be looked at thoroughly. The Government want to make sure that they have looked at all options to support Birmingham City Council’s highways maintenance programme.