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Labour plans to give private firms toll-road powers, sparking motorist backlash

The Highways (Financing) Bill would let private companies run upgraded roads and charge tolls, prompting criticism that it creates a new tax on drivers.

The Highways (Financing) Bill, introduced without a formal statement, proposes a licence regime that allows private contractors who fund road building or upgrades to become the operating authority and levy tolls on drivers. Transport Secretary Heidi Alexander says the approach has been successful in sectors such as energy and aviation, citing the Thames Tideway Tunnel and Sizewell C nuclear project. Opponents, including AA President Edmund King, Tory shadow transport secretary Richard Holden and Reform UK deputy leader Richard Tice, argue the plan could lead to a "wild west" of punitive charges on roads that are currently free.

The legislation would cover both new projects like the Lower Thames Crossing and existing routes such as the Dartford Crossing, with the Office of Rail and Road tasked with regulating rates. Critics also note motorists already contribute roughly £35 billion annually through fuel duty and vehicle excise duty, making additional tolls a significant burden. The bill does not set a cap on toll levels, though it promises that the regulator will ensure rates are fair and transparent.

Why it matters

It could add new, potentially high tolls to roads drivers already pay for, affecting travel costs nationwide.

In this story

toll roadsprivate firmshighways financing billroad taxesmotorist chargeslicence regimetransport policyfuel duty
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