Question to the Department for Transport:

To ask the Secretary of State for Transport, if she will make an assessment of the potential impact of the cancellation of the Birmingham Highways PFI contract on Birmingham City Council's ability to clear its existing backlog of road repairs.

The Government recently informed Birmingham City Council we would not
support their revised PFI proposal because it would require an upfront charge of between £200 million and £270 million which is not affordable for the Government.

Before reaching this decision, the Department held a consultation with the Council about the revised PFI proposal. The consultation focussed on the PFI’s accounting treatment and affordability. Impacts regarding road safety and the condition of Birmingham’s local highways were also considered as part of the consultation but did not mitigate the Government’s affordability concerns.

In terms of funding, the final instalment of our £50 million per year contribution to the PFI was made at the end of the previous financial year.

Starting this financial year, funding for the Council’s local highways will be provided via the West Midlands Combined Authority’s Integrated Settlement. For this financial year, we are uplifting this settlement by £17 million, which was calculated using the Department’s local highways maintenance funding formula.

For 2027/28 onwards, the Combined Authority have received confirmation of their £2.4 billion Transport for City Regions allocation, which represents a significant increase in local transport funding for the region.