Highways (Financing) Bill (Second sitting)

Debate between Tristan Osborne and Douglas Lumsden

Committee stage
Thursday 29th October 2026 Public Bill Committees

[Tristan Osborne]

Q I have a question on the ORR. My line of questioning is about whether the regulator is ready. Obviously we had the independent report last month. I challenged on one particular finding of that. Is the ORR ready for this challenge? Is the regulatory landscape in a firm place where we can solicit investor interest next year?

Again, speaking to the investor spokesperson today, they said that regulatory certainty was absolutely critical for them. I want to understand the operational capabilities, the engagement between the DFT and the ORR, and whether or not we will have that structure and that robust regulatory regime in place, and how confident you are about that.

Justin Madders: I am confident about that, because that is what the Bill intends to do. It sets it out very clearly. We have heard from the investors that that certainty will be a very attractive opportunity for the long-term investment we are seeking to deliver. There will be a need for some additional capability and capacity in the ORR, but I was very impressed with the evidence we heard today. It is very much on top of this, but there is much more to be done, and the Bill will enable it to do that.

[Douglas Lumsden]

Q Minister, we heard from the last person who gave evidence, the investor, that he would not be able to invest because of the uncapped cost overrun risks. You heard that as well. Would you look at it again to make changes to ensure investors are not so scared away by that risk?

Justin Madders: I am not too familiar with the factors he takes into account when investing, but my advice from officials is that the soft market testing that has been taking place has shown a lot of interest in this. He also said in his response that there would be quite a lot of people who would be looking to invest in this. That conversation is ongoing.

Having the legislation on the statute book will actually help give more certainty to investors. Clearly one of the reasons why the project has already started is to de-risk it to some extent. All the indicators I am getting are that we are putting this in a strong position to attract investment.