The Road Ahead

The Road Ahead

The role of National Highways in economic growth and housing delivery 
27 Nov 2024

Get Britain Moving Again

The Government’s investment plans, as outlined in the Autumn Budget 2024, have made clear that there is a critical need to invest in infrastructure to reshape our economy and fuel growth.  This presents a distinct opportunity to take a fresh look at how targeted investment in our road infrastructure can make a substantial contribution to headline policy objectives – ‘supercharging’ economic growth and significantly raising housing delivery rates. Lichfields has provided extensive insight on how these must-have political objectives can be practically achieved, not least through essential and fundamental changes to England’s spatial and land-use planning system.
 
In the Chancellors Autumn Budget and earlier Government statements, promises were made to ‘rebuild Britain’ through the modernisation of our transport infrastructure, drawing attention to our road network as ‘plagued by long-promised projects that are never delivered’. Commitments made include:
 
  • Maintaining and renewing the road network.
     
  • Giving mayors the power to create unified and integrated transport systems.
     
  • Developing a long-term strategy for infrastructure, through a ten-year plan.
     
  • Supporting the transition to electric vehicles and other forms of ‘home grown power’, giving certainty to manufacturers by restoring the 2030 phase-out date for new internal combustion engines.
     
The new Government are taking this agenda seriously, already postponing and cancelling a selection of high-profile infrastructure schemes through the Spending Audit, including the cancellation of the A303 Stonehenge and A27 Arundel bypass projects[1]. Making high-impact decisions from the outset demonstrates the Government’s intent to change priorities and drive efficiencies, redirecting resources to schemes that can be a catalyst of growth and offer greater value for money.
  
The announcement of planning reforms through an updated and reformed National Planning Policy Framework (NPPF) has underpinned the Government’s intentions to prioritise growth through cross boundary planning, devolution, and the introduction of landmark programmes such as New Towns and the implementation of the Grey Belt. National Highways can seize this opportunity to firmly establish themselves as an agent for growth cementing their core role in enabling growth across the country.
 

The vital role of National Highways

National Highways, along with Local Transport Authorities, is responsible for the country’s road network. It is an executive non-departmental public body responsible for planning, designing, building, operating and maintaining England’s motorways and major trunk roads – collectively known as the Strategic Road Network (SRN). While delivery is focused on England, the SRN plays a critically important role in ‘connecting the Union’ by ensuring robust and reliable transport links are in place to and from the borders of Scotland and Wales along with ports serving trade to and from Northern Ireland and the Republic.
 
As the custodian of England’s Strategic Road Network (SRN), National Highways plays an undeniably vital role in growing the UK economy and enabling productivity enhancements across a broad range of critical industrial and service sectors. At a sub-national level, National Highways is equally important to the economic development of city-regions and spatial clusters of wealth generating economic activities. This includes a central role in place-making and the delivery of strategic, residential-led and mixed-use sites which form important parts of the overall economic puzzle.
 
As summarised in the diagram below, National Highways is responsible for preparing a suite of evidence studies, strategies and plans which together indicate the company’s priorities for future investment in the SRN. Collectively, these documents form the basis of the five-year Road Investment Strategies (RIS) and long-term strategic investment plans setting out investment over the next 25 years. These strategies and plans reflect the economic role of National Highways, which they must champion through both project investments and long-term strategy.
 
Aligned to the Government’s mandate to ‘Get Britain Moving’, it is timely that National Highways, with support from Lichfields, recently published the overarching economic purpose of the SRN, comprising four central roles. Defining these roles has been essential not least because the statutory mandate for the company as set out in its Licence (2015) and DfT Circular 01/2022 do not, in our view, give National Highways enough influence in generating economic growth.
 
 
 
For National Highways to put these roles into practice, it is our view that the company requires support from Government to enhance its economic function as a leading contributor to place-based visioning, infrastructure resilience, economic growth and housing delivery. To be effective, the Government should aid National Highways in extending its statutory consultee and direct role beyond strategic matters and deeper into delivery, providing them with a mandate to facilitate growth alongside maintaining and operating the SRN. National Highways should therefore be elevated to ‘top table status’ with growth responsibilities akin to those of GB Railways and GB Energy. 
  
Arguably, National Highways’ wider reputation stems from its role as statutory consultee in the planning process, which sometimes is perceived as reactive with a one-dimensional focus on traffic impacts. Such a perception may partly be determined by the specific remit given to National Highways by Government as reflected in its Licence. A clear opportunity exists for Government to provide National Highways with a responsibility which is explicitly more proactive, allowing the company to act as a key player in enabling growth.

Challenges and opportunities for National Highways

Conflicting planning priorities
National Highways is a statutory consultee within the planning system, assessing the potential impacts of proposed development (including Nationally Significant Infrastructure Projects) on the SRN, retaining an essential responsibility to maintain the integrity of the network. The company is consulted on and responds to more than 3,500 planning applications every year where there is a perceived potential impact on the operation on the SRN. With the Government’s growth agenda – not least the emerging promotion of new towns, grey belt development, data centres, sustainable energy, freight and logistics sectors – the workload of National Highways planning function can only increase.
 
New developments, particularly for large schemes, are often assessed as having adverse impacts on the SRN due to the additional demand that would be placed on the network. Typically, the implication of such assessments is a requirement to increase capacity or invest in other improvements to the SRN; this can result in significant delays to securing planning permission, or even the prevention of the development altogether. In this context, the key challenge for National Highways is to balance its obligations as a statutory consultee to maintain and protect the SRN with a more proactive and positive influence on development and economic growth. This requires fostering a strong collaborative relationship with local authorities, industry and development.
  
      
 

Milton Keynes East


 

An example of the growth potential of a proactive approach to collaboration  is the major mixed-use development at Milton Keynes East around Junction 14 of the M1. In this case, National Highways agreed to a future monitoring clause to address concerns regarding potential impacts to J14, rather than requiring improvements in advance of housing delivery, enabling the development to be delivered at the agreed timescales and in alignment with the place-based vision. Evidently, National Highways can work collaboratively with developers and local authorities to enable the delivery of major housing and mixed-use sites in a way that does not prejudice the continued operation of the SRN. 

 
     

 

The NPPF consultation draft proposed to update guidance to take a greatly enhanced growth approach to planning. For example, it makes clear that development should only be prevented should there be an unacceptable impact on highway safety, “in all tested scenarios”. This is an important shift in policy, as development proposals have historically been assessed against a worst-case scenario in terms of road network impact which typically reflected the traditional ‘predict and provide’ approach to transport assessments. A more flexible approach to testing highways impacts creates an environment where National Highways can collaborate with developers and collectively find suitable solutions which will allow priority development to be delivered and visions to be achieved.
  
 
Supporting SRN reliant growth
National Highways have a strong track record in enabling growth through programmes of ring-fenced funding, such as the Growth and Housing Fund.
 
Growth and Housing Fund
  
 

 

Through designated funds such as this one, National Highways have shown their capability to work collaboratively with local planning authorities, facilitating growth through improvements to the SRN. Going forward, the company can leverage their expertise and growth-oriented intent to help local authorities deliver more locally led growth alongside strategic development ranging from New Towns to large-scale gigafactories, data centres and clusters of advanced manufacturing. Such a role can work in parallel with other emerging policy measures such as the English Devolution Bill, which will transfer more growth-focused powers to elected mayors in combined council areas and upper tier authorities.
 
     
 

Growth and Housing Fund


 
An example of a project funded through the Growth and Housing Fund is the A46/A560 Anstey Lane scheme, which was allocated £5 million. The project began in September 2019 and was completed in July 2020, enabling 407 homes with a further 1,040 in progress and the created of 640 jobs. The project also helped unlock 10,000 sq.m of commercial floorspace with another 10,000 sq.m in progress.
 
     
  
 
A new dawn for planning
The SRN is a critical factor in determining the location of major developments, whether that be for new communities and major extensions to existing settlements, large scale town and city centre regeneration, warehousing and logistics, modern industrial plants, HGV facilities, multimodal hubs, or business & science parks.
 
The publication of the NPPF consultation draft in July 2024 has set the wheels in motion for development. The proposed changes to the Standard Method will increase housing delivery targets in England from an already ambitious 300,000 to an unprecedented 370,000 homes per year. A new wave of Green Belt Reviews – triggered by paragraph 142 of the new NPPF – is likely to result in substantial release of ‘Grey Belt’ sites. The ‘Golden Rules’ (paragraphs 155-157) applying to developments on land released for Green Belt means they will be required to make contributions to “necessary improvements to local or national infrastructure” – implicitly establishing a role for National Highways in the delivery of a key government policy.
 
The new NPPF also enshrines a ‘vision led’ approach to sustainable transport modes, targeting a significant shift away towards vehicles sustained by renewable energy, public transport and active travel. Inevitably in the mid to long term, National Highways like all transport organisations will need to ensure its role in enabling economic growth is clearly integrated with its approach to achieving net zero. New Towns are another facet of the new Government’s sweeping changes to planning policy in England. Following the establishment of the New Towns Taskforce and recent policy statements, at least 10,000 new homes per new town (or urban extension) are expected.
 
We know that “the next generation of new towns must be well-connected”[2]. This is an invitation to National Highways to actively participate in the development of new towns ensuring they are provided with reliable, efficient and sustainable connections to the SRN. Indeed, in many cases, access to the existing or enhanced SRN will be a key locational determinant of new towns.  Consequently, it is of paramount importance to the success of the Government’s policy that National Highways is involved at the inception stage through to delivery, growth and consolidation of new towns – National Highways must be at the top table. 
 
   
Influencing national development programmes
National Highways is already a strong advocate for ensuring the SRN maximises its role as an enabler of economic growth and housing delivery. However, the company wears many hats, some of which can – at times – conflict with each other. National Highways’ license largely limits its mandate to safeguarding the network, which ultimately can create tensions as it transitions to a role as an enabler of growth. We advocate for a clarified remit for National Highways which maintains its historic ‘protection’ of the network but explicitly expands and balances its responsibilities to become a direct agent of growth in defined circumstances and places.    
 
Additional Government support, including an enhanced and more direct remit to enable economic growth and facilitate new development, would be a significant step in putting roads on par with other major infrastructure providers (including rail and energy) while mitigating the potential for internal conflicts of interest. National Highways should be offered a seat at the ‘top table’ if they are to be seriously taken as stewards of growth. This includes a strong role in influencing major national programmes and development initiatives.
  
Such a role can readily be enhanced, in part through emerging policy measures such as the Government’s English Devolution Bill which will transfer more powers to elected mayors in combined council areas and upper tier authorities. A change in policy will see the establishment of delivery bodies akin to a broad development corporation model. The success of such delivery organisations will, to an extent, rely on positive and early collaboration with National Highways and other infrastructure owners and providers.   
 
    
A proactive role in plan making
The new NPPF has outlined the Government’s intention to create a “universal system of strategic planning across England in this Parliament”. This will involve “effective strategic planning across local authority boundaries” with a focus on “key spatial issues” and sustainable growth at the local level.
  
The NPPF consultation aims to “promote a more strategic approach to planning … ahead of legislation to introduce mandatory mechanisms for strategic planning.” Local authorities in so-called ‘devolution deserts’ will be supported by Government to create a devolution deal that will give them more power over local decision-making. The mayoral and combined authorities will be supported to undertake Spatial Development Strategies, similar to the London Plan. This is another entry point for the involvement of National Highways, ensuring both the needs of the SRN and the conditions to facilitate economic growth are embedded in these plans. As emphasised in Economic Role 3, National Highways’ contribution to planning and placemaking will generate most value when it is involved at the earliest stages of the formulation of strategic and local plan policies and when its investment is aligned to spatial strategies and complementary public investment.
  
National Highways should ensure they break away from being a reactive consultee and become an active partner in the new strategic planning process, aiming to have a proactive and positive influence on early-stage decision making. Collaboration need not be confined to local planning authorities or combined and mayoral authorities; new entities such as GB Rail will likely become important partners in the future vision led approaches to both spatial and transport planning. However, for this collaboration and influence to be effective, central Government will need to formally provide National Highways with the remit to do so.
  
  
Serving key growth sectors
The new NPPF policy mandates not only a boost in housing delivery but also the identification of sites for the ‘modern economy’ – laboratories, gigafactories, digital infrastructure, and critically the freight and logistics sector, which heavily relies on the SRN. The motorway and trunk road network are critical for the effective operation of manufacturing and freight & logistics sectors, ensuring reliable and efficient movement of inputs and the distribution of part and fully-finished goods.
 
 
The Government’s new industrial strategy clearly acknowledges the importance of freight and logistics sector having identified it as a priority sector for growth and investment in it’s emerging industrial strategy[3]
  
National Highways’ network is essential for the successful operation of SRN-reliant sectors, ensuring businesses can maintain or boost their productivity. Key industries clearly need and relies on the network. The challenge for National Highways is to be given an explicit responsibility for investing in the SRN to meet the growth needs of these industries. Much of this need will be closely aligned with its future role in the planning system, particularly through the delivery of key sites in optimum locations.
  
National Highways’ recent publication of its economic roles underscores how important a part the SRN plays in enhancing productivity and competitiveness through network efficiency and strategic investments. As a statutory consultee, and with the government’s push for Local Growth Plans, National Highways is in a prime position to support productivity by fostering connections between the SRN-reliant sectors and the planning system. Early involvement in plan development will enable National Highways to act as a growth agency while balancing any implications on the SRN. This early involvement will be equally important in the development of other spatial and sector strategies and plans including Local Growth Plans, industry-led growth plans and other measures aimed at supporting the growth of the modern economy.
 
 

What does this mean for National Highways

This piece has explored some of the key opportunities and challenges facing National Highways in light of the Government's headline policy of super-charging economic growth and rapidly accelerating housing delivery in England. A central theme is the significant opportunity for National Highways to positively influence the planning and execution of the new growth agenda. To support this, the Government should refine National Highways' remit, including a clearer definition of its role as a statutory consultee.

  
Challenges for National Highways
 
Opportunities for National Highways

 

 

Insight authors

Richard Coburn

Senior Director
VIEW PROFILE

Sakhi Sumaria

Associate Director
VIEW PROFILE

Emma Taylor

Senior Economics Consultant
VIEW PROFILE

 
 

Footnotes

[1] HM Treasury (2024) Fixing the foundations: public spending audit 2024-25. Available here
[2] MHCLG (2024) Policy statement on new towns. Available here

[3] Department for Business and Trade (2024) Invest 2035: the UK’s modern industrial strategy. Available here

 

Disclaimer: This publication has been written in general terms and cannot be relied on to cover specific situations. We recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Lichfields accepts no duty of care or liability for any loss occasioned to any person acting or refraining from acting as a result of any material in this publication. Lichfields is the trading name of Nathaniel Lichfield & Partners Limited. Registered in England, no.2778116