Bus services will not be affected by the reallocation of some Department for Transport (DfT) capital funding to increased defence spending, but the roads budget is to be compromised, the government has revealed.
Those positions are contained within a policy paper outlining the fiscal impact of an additional £15 billion for the Defence Investment Plan between FY2026/27 and FY2029/30.
That total will come primarily via reallocating monies from across other departments to release £10.3 billion, while a further £4.7 billion will be found at the 2026 Budget “in a fair and balanced way.”
Departments have been asked to contribute 1p in every £1 of their capital budgets for the current year, but DfT is cited as having a larger such allocation. It will thus make further contributions.
Up to £700 million will come out of roads funding, with DfT to consult on reductions to the third Road Investment Strategy. That could see cancellation of the A38 Derby Junctions and A46 Newark Bypass projects. The government says those “are yet to enter contract and [are] not as far along as other road schemes.”
Limited reductions to “as yet uncommitted roads funding” will also be explored by DfT as part of the defence reallocation, although the government says it is committed to protecting local authority monies to fix potholes and repair roads. Proposals are specifically noted as not hitting bus or rail services. Overall, the Department will make an £800 million additional contribution.
RHA has repeatedly called for roads funding not to be sacrificed to lift the defence budget, with Managing Director Richard Smith having previously noted that spending on roads “is an investment in the economic health of the country” and that congestion already costs the UK over £30 billion per year.
Shortly before the joint Ministry of Defence and Treasury policy paper on the increased defence funding was published, RHA underlined its call for roads spending not to suffer.
Mr Smith highlighted the A46 Newark Bypass project as particularly important to progress. “A modern, safe and fit for purpose strategic and local road network is essential for the frictionless movement of goods and passengers,” he adds. “The time to invest in our road network is now, not later. We stand ready to work with government to get this right.”
