Major roads investment increases pipeline visibility for infrastructure sector

BCIS has welcomed the government’s £27 billion commitment to reinforcing England’s road network as a clear signal of future activity for the infrastructure sector over the next five years.

Roads Investment Strategy 3 (RIS3), the government’s third such programme since 2015, sets out funding and strategic priorities for its third road period (2026 to 2031).

Funding includes £8.4 billion for motorway and major A-road renewals, more than £4.4 billion for key enhancement and renewal schemes in the North and around £3.8 billion dedicated to targeted enhancements to tackle pinch points and unlock national, regional and local economic growth and housing opportunities⁽¹⁾.

The Lower Thames Crossing scheme will receive an additional £1.65 billion for publicly funded works too.

Karl Horton, data services director at BCIS, praised the new strategy for providing a clear, funded pipeline that should support decision-making across the industry.

‘The £27 billion commitment under Road Investment Strategy 3 is a significant and reassuring signal from the government at a time of heightened geopolitical uncertainty,’ he said.

‘With pressure on interest rates and investor confidence potentially mounting, long-term public investment of this scale provides much-needed stability for the infrastructure pipeline.

‘BCIS forecasts point to robust growth in the infrastructure sector over the next five years, underpinned by major transport and energy programmes. But attracting private finance remains challenging in the current climate. Clear, sustained public sector commitments, particularly to essential assets like the strategic road networks, is one of the most effective ways to mobilise private investment and maintain momentum across the sector.

‘Beyond supporting delivery, this programme also addresses the pressing need to renew ageing road infrastructure, which is critical for economic resilience, connectivity and productivity.’

RIS3 confirms that 15 large renewal schemes will progress during the third road period, with up to nine expected to complete construction by the end of 2031.

A further 27 enhancement schemes are planned. Of these, 12 are expected to open to traffic within the third road period, with work starting on five additional schemes in the North and Midlands. Nine further projects are expected to start development, with construction on these due to begin in the fourth road period.

According to its latest forecasts, BCIS predicts a 15% increase in new infrastructure output between 2025 and 2030. Civil engineering costs are also projected to rise by 14% in the five years to 4Q2030, alongside an expected 22% increase in civil engineering tender prices.

Feedback from the latest meeting of the BCIS Civil Engineering Tender Price Index Panel indicates that activity in the roads sub-sector in the first quarter of 2026 was largely driven by repair and maintenance works, rather than new construction.

Dr David Crosthwaite, chief economist at BCIS, said the infrastructure sector has entered the new period of global uncertainty from a more resilient position than in previous cycles, but underlined ongoing pressures.

‘Supply chain disruptions during the pandemic and the Russia-Ukraine war exposed structural weaknesses, prompting firms to strengthen operational resilience,’ he said.

‘The current geopolitical shock will therefore test the extent to which these lessons have been embedded and whether recent adjustments are sufficient to mitigate further disruption.

‘Pressure on skilled labour persists, with ongoing concerns around both availability and cost. With infrastructure output expected to grow and labour supply remaining constrained, BCIS forecasts continued increases in labour costs.’

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^{(1) GOV.UK – Road Investment Strategy 3 (RIS3): 2026 to 2031 – here}