Question to the Department for Transport:

To ask the Secretary of State for Transport, what assessment she has made of the potential impact of the cancellation of the Birmingham Highways PFI contract on Birmingham City Council’s capital spending requirements.

The Government is committed to working with the Council to achieve a successful transition away from its PFI arrangements alongside progress with the Council’s financial management and recovery.

To support this, the Department for Transport has put in place future funding arrangements for Birmingham’s local highways. Starting this financial year, funding for the Council’s local highways will be provided via the West Midlands Combined Authority’s Integrated Settlement. For 2026/27, we will uplift the Combined Authority’s Integrated Settlement by £17 million, which was calculated using the Department’s local highways maintenance funding formula.

Councils are responsible for their own capital spending requirements. Nonetheless, the Department has collaborated with the Ministry of Housing, Communities and Local Government on the Council’s transition away from its PFI to help ensure alignment with MHCLG’s work with the Council regarding its financial management and recovery.