A major overhaul of road and rail procurement is required to slash public costs, speed up delivery times, and unlock massive economic growth across the United Kingdom. Following an intensive eleven-month market study into the civil engineering sector, the Competition and Markets Authority has published a report revealing that the current fragmented and short-term approach to infrastructure projects is actively driving up taxpayer costs while stifling industrial innovation.
The scale of the financial inefficiency is stark. During the 2023 and 2024 financial year, approximately £19 billion of public money was poured into road and railway infrastructure, excluding High Speed 2. Despite this massive investment, the market has historically underdelivered on productivity and project speed. The competition watchdog highlighted external research indicating that by correcting these systemic market failures, the UK and its devolved governments could save up to £5 billion every single year. Beyond direct monetary savings, a reformed market would significantly reduce project timelines, encourage heavy private investment, and empower domestic firms to scale up and compete internationally.
The regulatory authority identifies several deep-rooted issues plaguing the current setup, including chronic funding uncertainty, short-term political decision-making, highly complex regulatory environments, and critical capability gaps within procuring bodies. To reverse this trend, the report lays out a comprehensive agenda for systemic reform. A central pillar of this strategy is shifting strategic ownership to HM Treasury. By taking charge of system-wide changes, the Treasury can use its unique convening powers to actively shape the market. Furthermore, the CMA urges the UK government to collaborate with the devolved administrations in Scotland, Wales, and Northern Ireland to publish a unified, strategic civil engineering sector plan, accompanied by mandatory annual progress reports.
Crucial to rebuilding supply chain confidence is the establishment of credible, multi-year funding models and highly transparent project pipelines. When infrastructure firms have clear visibility into long-term national plans, they gain the confidence to invest heavily in specialized skills, advanced machinery, and innovative construction methods. Additionally, the CMA notes that procurement processes must be entirely redesigned to prioritize long-term value over the lowest immediate bid, thereby incentivizing competition and rewarding modern engineering solutions. To support this, public sector capability must be strengthened by bridging skills shortages within procuring authorities, encouraging shared expertise, and utilizing smarter joint procurement frameworks.
Industry bodies have strongly welcomed the findings. Representatives from the Institution of Civil Engineers noted that the recommendations align closely with their own long-standing goals, specifically praising the push for mandatory adoption of the Construction Playbook to accelerate project delivery. Similarly, the Civil Engineering Contractors Association emphasized that providing a clear strategic direction will create a powerful multiplier effect, transforming public spending into a primary driver of national economic growth and making the UK an far more attractive destination for global infrastructure investment.
The targeted package of recommendations has been formally submitted to UK Cabinet ministers, devolved administrations, and metro mayors. The UK government has committed to delivering a formal response to the watchdog’s findings within 90 days. As the CMA continues its broader mandate to tackle public sector bid-rigging and optimize public procurement across key industrial sectors, it plans to release further market-shaping analysis and policy recommendations later this year.
