Govt ‘scraps’ Birmingham Highways PFI funding

Credit: Getty

The UK government has decided to end its funding of the Birmingham Highways PFI scheme, according to local councillors.

Liz Clements, Cabinet member for transport at Birmingham City Council, has posted a video on X (formerly Twitter) saying: “Yesterday, we found out that the government has decided to scrap the deal made with Birmingham City Council back in 2010, meaning we’ll lost over £500m of funding for our roads over the next 12 years.”

She went on to warn that the decision “risks transport chaos in Birmingham”, as it is now unclear how the authority - which recently issued Section 114 notice (a formal admission it could no longer balance the books) - could pay for the PFI deal.

The Birmingham Highways PFI has faced a number of setbacks and difficulties over the years, but had recently seen Kier installed as the contractor on the project, after Amey left the deal in 2020.