Question to the Department for Transport:

To ask the Secretary of State for Transport, for what reason National Highways cancelled its contract with Skanska for the A46 Newark Bypass scheme; and whether the scheme remains part of the strategic roads programme.

The contract for the A46 scheme was awarded to Skanska in 2022. The Government inherited a series of unaffordable commitments in July 2024 and conducted a Spending Review. As a result, the A46 scheme was expected to be delivered later than previously assumed and the contract with Skanska was no longer optimal. National Highways informed Skanska that it would not be proceeding with the main construction works under that contract. National Highways is grateful to Skanska for its valuable contribution in progressing the A46 Newark Bypass scheme through the design and planning consent stages and continues to work with the company on a number of other schemes currently under construction.

Separately, to support the Government’s Defence Investment Plan (DIP), the Department for Transport has identified potential savings from its roads budgets which include the potential cancellation of the A46 Newark Bypass scheme, on which the Department will consult shortly. No final decision has yet been made on the cancellation of the scheme, and the Department will carefully consider the responses to the consultation before deciding the way forward.