Highways (Financing) Bill (First sitting)

Debate between Douglas Lumsden and Jim Dickson

Thursday 29th October 2026 Public Bill Committees

[Jim Dickson]

Q It has been suggested that the requirement to sign in separately to use each tolled arrangement in the UK—the Mersey tunnels, the Tyne tunnel, the M6 and elsewhere—is a burden on a whole variety of road users. Mr Whelan, what do you think of the opportunity to create interoperability among tolled arrangements, thereby making it better for the logistics industry and consumers who use multiple tolled arrangements?

Michael Whelan: We fully support that and are looking at it as an industry—some operators of toll roads have come together to discuss that. Having one account makes a lot of sense, particularly for freight and logistics organisations. On top of that, interoperability can be expanded into other things, such as signage. Anywhere else in the world, toll roads will have a unique colour or symbol. That is important, because it helps to make sure there is some consistency and knowledge for the customer of what they are approaching, such as about when to pay. When it comes to free-flow tolling, it is important that people understand in advance what the rules are. Hence, we fully support part 7, with some minor amendments that we would like to see to clauses 92 to 94. Those are outlined in the pre-reading, but I think we might have run out of time to go through them now.

[Douglas Lumsden (Aberdeen South) (Con)]

Q Mr Whelan, we heard from the previous panel about the potential to offer discounts to local residents. Does M6 toll do that at present? How would that work?

Michael Whelan: We have done that. About two and a half years ago we put in place a new toll system—we spent £20 million on it—and that enabled us to introduce new toll pricing. We reduced prices for locals to £4, and we have held that there for the two and a half years. We have not increased it. That is something we are conscious of and have actively looked at, as well as having new products, some with discounts and some without. Interestingly, the account product that does not have a discount is our most popular one.

Highways (Financing) Bill (Second sitting)

Debate between Douglas Lumsden and Jim Dickson

Committee stage
Thursday 29th October 2026 Public Bill Committees

[Douglas Lumsden]

Q I guess you could step in and increase the costs and have them earning more to try to keep them on a sustainable footing.

Will Godfrey: At certain points it is possible that a regulator could introduce things like cost limits, beyond which there was then a redetermination of a price allowance, but not necessarily one that was a simple “costs have overrun by CX, therefore tolls increase by the same amount.” It would not be an automatic pass-through; it would be subject to that efficiency and economy test.

[Jim Dickson (Dartford) (Lab)]

Q One of the things that has come through from other witnesses today is the need for pace on this project—the status quo is appalling for my residents but every bad for the economy and for various sectors. Matt, would you say that the need for us to pass some legislation, then have an equity competition and then appoint the funders is slowing down your work to make sure that the project continues and completes on time—and hopefully on budget and on spec as well?

Matt Palmer: We are moving at pace. The Chancellor at the last autumn Budget—not this one—announced funding to get us to private finance, and we are well into that. We are moving at pace. There is a misunderstanding that we have not started. We have very definitely started: 2,000 people are on site, we have 14 sq km of land and there is a lot of mud at the moment, I am afraid. We are moving well and at pace. Our target is to get a tunnel boring machine, which will be the largest in the world at the time, in the ground in 2028, which will line up roughly with when we go to private finance. All of that is contingent on the fact that we need the legislation through to allow us to get the equity to move on thereafter.

--- Later in debate ---

[Jim Dickson]

That is very helpful.

[Douglas Lumsden]

Q Andrew, I think you said earlier that one of the issues was uncapped cost overruns for the contractor. What is the consequence of that? Does it scare some contractors away?

Andrew Truscott: Not for the contractor; for the investor. Sorry—if I said “contractor”, I meant “investor”. Apologies. I do not care about the contractors. [Laughter.]

It is not because we do not understand and price risk; that is what we do for a living. It is just that I cannot go to my investment committee and, when asked, “Okay, Andrew, what is the maximum amount of equity you are going to put into this project and therefore what is the return you are expecting to get on it?”, give the answer, “I don’t know.” That is not a conversation—well, it could be a conversation, but it would be the last conversation I have with my investment committee.