Highways (Financing) Bill (Third sitting)

Zöe Franklin Excerpts

Committee stage
Tuesday 3rd November 2026 Public Bill Committees

Division 1

Question accordingly negatived.

Ayes: 4

Noes: 13

[Zöe Franklin (Guildford) (LD)]

I beg to move amendment 37, in clause 1, page 2, line 3, after “strategic” insert “and local”.

This amendment expands the general duty of the ORR so that it must consider and avoid adverse impacts on local roads, as well as the strategic road network.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 47, in clause 1, page 2, line 5, leave out lines 5 and 6.

This amendment would remove the ORR’s duty to have regard to contributing to sustainable development when carrying out its duties under the Act.

Clause stand part.

Amendment 48, in clause 2, page 2, line 39, leave out lines 39 and 40.

This amendment would remove the Secretary of State’s duty to have regard to contributing to sustainable development when carrying out its duties under the Act.

Clause 2 stand part.

Amendment 68, in clause 103, page 67, line 18, leave out lines 18 to 21 and insert

“after the Secretary of State has published its guidance to the ORR under section 1(5).”

This amendment prevents the Act from coming into force until the Secretary of State has published the guidance to the ORR on how it must undertake its regulatory functions under the Act.

[Zöe Franklin]

It is a pleasure to serve under your chairmanship, Mr Dowd. Clause 1 obliges the Office of Rail and Road only to

“have regard to…avoiding adverse impacts for the strategic road network”.

That creates severe statutory asymmetry that will potentially leave council-maintained local roads completely unprotected. The amendment would correct that omission by elevating local road protection to an equal statutory footing, requiring the regulator to actively evaluate and mitigate traffic displacement, road surface wear, and congestion on local surrounding roads caused by potential toll avoidance. Surrounding A roads and B roads managed by local highways authorities face accelerated asphalt degradation when heavy commuter and freight traffic diverts from tolled highways and creates potentially massive uncompensated repair backlogs for local council tax payers. We all know the challenges that our local roads face under our local highways authorities.

Steve Gooding, director of the RAC Foundation, cautioned the Committee that drivers faced with a toll will naturally choose local, free alternatives, creating negative traffic impacts across adjacent networks. That must be taken into account. The evidence of Ralph Smyth, from the Transport Action Network, highlighted that creating private toll infrastructure without a statutory duty to protect adjacent road networks breaks the integrated transport planning and leaves local highways authorities without recourse.

Why does clause 1(3)(b) explicitly protect National Highways’ strategic network from adverse impacts while leaving local council roads to absorb the traffic gridlock and financial fallout of toll evasion and avoidance? Will the Minister accept amendment 37 to ensure that the regulator has an explicit statutory duty to protect local communities and local highways authorities from toll diversion impacts? I intend to push the amendment to a Division.

[Greg Smith]

In this group I wish to speak to amendments 47, 48 and 68, tabled in my name. I will also speak to amendment 37, tabled by the Liberal Democrat spokesman, the hon. Member for Didcot and Wantage.

His Majesty’s official Opposition have considerable sympathy with amendment 37. The unintended consequences that we sometimes see from infrastructure projects must not be brushed to one side; they must be taken seriously. I was in a small hamlet in my constituency at the weekend. The unintended consequence of something as simple as a road diversion in Oxfordshire—I have to say it, as the Liberal Democrat spokesman, the hon. Member for Didcot and Wantage, is an Oxfordshire MP—forced a considerable volume of traffic through that small hamlet, causing considerable distress in narrow rural lanes. The same could happen from any major infrastructure scheme.

We have heard in the oral evidence sessions and on Second Reading about the concerns that traffic displacement immediately surrounding the lower Thames crossing can be a serious problem for communities and for people trying to get their kids to school, get to work and go about their daily lives. Those local roads are the very veins that flow the traffic to the newer infrastructure projects as they are built. They are the roads off which people predominantly live—nobody lives on a motorway, on a bridge or in a tunnel. Therefore, without due regard for how we ensure vehicle movement through those roads from people’s houses, businesses, schools, hospitals and doctors’ surgeries to those new major infrastructure projects, such as the lower Thames crossing, nothing will work. This is almost the very definition of needing joined-up Government, joined-up planning and joined-up approaches to anything that we build in this country, including the lower Thames crossing and the other potential future unnamed projects that the Bill would allow for. The official Opposition have considerable sympathy with amendment 37. If the Liberal Democrats push it to a Division, the Conservatives will vote for it.

Moving on to the other amendments in group 2, amendment 47 would remove the Office of Rail and Road’s duty to have regard to contributing to sustainable development when carrying out its duties under the Bill. The amendment is not an attack on the environment or anything like that; it is about getting the balance right between getting infrastructure built and doing it at the lowest possible cost. We saw in the oral evidence sessions, and I have certainly seen in my research, that one of the things wrapped up in sustainability is—through separate order but fundamentally coming back to the wording in clause 1—the banning of the use of diesel plant in construction. White diesel runs between 20p and 25p a litre cheaper than hydrotreated vegetable oil, which is the current primary alternative that can be used instead of diesel plant—although, it has to be said, it is not a drop-in fuel; it requires mechanical changes to fuel filters and other parts of the vehicle to be operational. Banning the use of diesel plant will just drive up the cost, which ultimately be borne by payers of tolls.

--- Later in debate ---

[Justin Madders]

I am grateful for the hon. Lady’s question. There is a plan in place, but it would be a bit ridiculous for us to have everyone ready now when the legislation has not been passed. I assure her that a number of considerations are already taking place about having the right skills. We heard evidence last week that there is confidence that the right skillsets and people will be in place to provide the important functions that the ORR will have to deliver under the legislation.

Clause 2 sets out the overarching duty that will guide the Secretary of State when exercising functions under the Bill. It mirrors the duty placed on the ORR in clause 1 and ensures that both key decision makers operate within a consistent statutory framework. As the Bill gives important functions to the Secretary of State and the ORR, it is therefore important that decisions made by each are guided by the same overarching objectives and principles.

The clause requires the Secretary of State, like the ORR, to act in a way that furthers the interests of road users. In doing so, the Secretary of State must balance a range of important considerations, including efficiency, safety, sustainability and the impact of decisions on the wider strategic road network. These duties are underpinned by established principles of good regulation, helping to ensure that decisions are transparent, accountable, proportionate and targeted only when action is needed. I therefore commend the clause to the Committee.

[Zöe Franklin]

I thank the Minister for his comments. However, I remain unconvinced about local authorities not having that statutory duty, so I wish to press the amendment to a Division.

Question put, That the amendment be made.