Highways (Financing) Bill (First sitting)

Peter Prinsley Excerpts

Thursday 29th October 2026 Public Bill Committees

[Tristan Osborne (Chatham and Aylesford) (Lab)]

Q It is a pleasure to serve under your chairmanship, Ms Lewell. I have two questions. First, the Bill looks specifically at the crossing, but there are other infrastructure upgrades—as an MP in north Kent, my example is the A229 Blue Bell Hill upgrade. There are key junctions where congestion is a problem. In your view, does the Bill take into account the other, wider infrastructure upgrades that might be necessary?

Secondly, this week, the Public Accounts Committee, which I sit on, released a report on the RAB model for Sizewell, which there are concerns about. Do you have a view on that model? I appreciate that you have indicated that the model will not be used elsewhere, but is there an educated view on whether an alternative model might have worked better?

Steve Gooding: On the first point, the Bill is not specific even to the Dartford crossing or the lower Thames crossing, so I do not think that it takes account of the other schemes we have talked about per se, other than in the general duty for the Secretary of State and ORR to consider the network as a whole. That has already been raised, but the Committee might want to probe it a bit further.

As for the RAB model, I can certainly see the logic, but one has to start with a decision that the Chancellor does not wish to borrow the money himself. If that is the case, in these circumstances, given where National Highways has got to already with contracting for the construction of the tunnel, this appears to be a sensible model, provided that lessons are learnt from past RAB projects. One of those is about the ability and capability of the regulator to do what it is being relied on to do.

Edmund King: One of the features of the RAB model that is quite hard to get your head around is that it is open ended. There is no finish date. On the M6 toll I know that it is a different private finance model, but it was given a 53-year concession. Under this model, in effect, the concession could be 100 or 120 years unless the licence is revoked. That is quite difficult to get your head around at first, because when you look at the Dartford crossing and the tolls going to the Treasury, this is totally changing the model. We have to be sure that the safeguards are there and built into the model. That is why I think toughening up and strengthening the Office of Rail and Road and bringing in a greater degree of independence is increasingly vital.

[Dr Peter Prinsley (Bury St Edmunds and Stowmarket) (Lab)]

Q I am the MP for Bury St Edmunds and Stowmarket in Suffolk, where we have a lot of problems with our roads and no motorways. I think the general public are anxious about the price and what it is going to cost for them to take their vehicles through this new tunnel. On what you said earlier about there being very little choice—people will use this tunnel if it is there—there is a fear that the public will be held to ransom. That is the problem. How are we going to deal with that? What do you anticipate the price of taking my car through this tunnel will be when it opens?

Steve Gooding: I hesitate to say what the price is going to be. I suspect it is going to be whatever it costs today to go across the Dartford crossing and some more. Given the anxiety that people quite rightly feel at the moment when looking at the cost of the lower Thames crossing, there must be a question whether it has to cost quite that much. Whatever further pressure can be applied, everything is going to flow from that initial estimate. How the RAB is valued over time will flow from the question of what it costs to build this thing. That is why it is so important at the outset that as much pressure is put on National Highways to keep the costs under control and preferably drive them down. That is what will affect things. Subsequently, some quite big bills will come in for the refurbishment and renewal of the existing bridge and tunnels. Keeping pressure on those is important and that is why, as we keep saying, the pressure from the regulator to press for the efficient cost is so important to the structure working.

[Dr Prinsley]

Q And you would like to see that written into the Bill?

Steve Gooding: It is very hard to write it into the Bill. However, there is absolutely the need to keep the pressure up. That is why we have the independent regulator—some entity that is effectively saying, “You can tell me whatever you like about the cost of this, but in my opinion, the efficient cost of it is x.”

In this model, particularly if we are talking about the lower Thames crossing, that first estimate will be derived from the National Highways model, obviously with ORR involvement, but it will not be quite the same as subsequent reviews where it will be entirely down to the ORR.

Edmund King: Currently the cost at Dartford is £3.50 for cars and £8.40 for heavy goods vehicles. It brings in about £130 million a year. If you do some back-of-the-envelope calculations, on a 120-year concession, that would bring in £15.6 billion. It is estimated that the scheme might cost £11 billion now. People accept that the £3.50 and it is affordable. I think it should be based on that figure with limits built in, whether linked to inflation or something else. It is vital that it is to be affordable for people, not just fair and transparent.

[The Chair]

That brings us to the end of the time allotted for the Committee to ask questions to this panel. On behalf of the Committee I thank our witnesses for their evidence.

Examination of Witnesses

Ben Garratt, Declan Pang and Michael Whelan gave evidence.