National Highways’ regulator falsely told Parliament that the company had a projected overspend of nearly a quarter of a billion pounds, but the fictional deficit was almost entirely the result of collusion within government to pretend that a shelved road scheme was still going ahead.
The revelation raises further concerns about whether the Office of Rail and Road (ORR) sees its role as holding National Highways to account or keeping the company’s secrets from Parliament and the public.
It is the latest revelation in the scandal that saw both organisations falsely claim in reports presented to Parliament that the A1 Morpeth to Ellingham scheme, which was shelved in February 2022, would go ahead in the 2022-23 financial year.
Not only did the ORR’s annual assessment of National Highways for 2021-22 falsely claim that work on the scheme would start in 2022-23, but it reported that the scheme had a huge overspend (£216m) resulting from “forecasting spend of £255m against a RP2 baseline of £39m”.

However, this forecast spend was fictitious and the regulator knew it. It knew very well that the funding for the scheme had been withdrawn (apart from sunk development costs) and that National Highways was delaying formally pausing the scheme in order that it could hide from MPs the fact that it had been shelved.








