London Daily

Focus on the big picture.
Saturday, Nov 15, 2025

Government admits funding gap on roads and infrastructure projects

Government admits funding gap on roads and infrastructure projects

The Scottish government has admitted it does not have the capital funding it needs to meet its public commitments to major infrastructure projects.

Spending on infrastructure such as roads faces delay or cancellation under plans currently being drawn up.

Funding for major projects running to the end of the decade is no longer being confirmed.

The shortfall in funds was set out in a "targeted capital review" that was published last week.

It was published at the same time as a much wider "resources review", which saw a "reset" of day-to-day spending and real-terms cuts for a wide range of public services.

The capital review was lower key and unclear about the implications. Finance Secretary Kate Forbes stated: "It will not be possible to meet all of our commitments within the funding available."

The Scottish government capital spending review document puts some of the blame for the changes on allocations of capital funds by the Treasury in its spending review published last autumn. These are 5% lower than the Scottish government expected.

The St Andrew's House review says the allocation of capital funds by the Treasury "places significant additional pressure on our capital programme and will curtail efforts to reduce emissions and adapt to the changing climate".

Finance Secretary Kate Forbes set out plans for real-terms cuts to many public services


More significant problems are arising from the inflation of costs and supply chain disruption to construction projects, which the finance secretary blames on Brexit, energy inflation and war in Ukraine.

The Office for National Statistics estimates inflation on new construction projects is running at 8%, and on housing at nearly 11%.

The document states: "The challenging external market conditions of inflation and supply chain impacts are already causing delays and placing pressure on budgets associated with certain projects.

"Reflecting this, as well as the challenging fiscal position, within this targeted review of the 2021 Capital Spending Review, there are a number of areas where the funding profile has had to be slowed down - such as road improvement programmes."

That could have an impact on upgrading of the A9 between Inverness and Perth, the A96 between Aberdeen and Inverness, and the A75 linking Dumfries with Stranraer.

A Scottish government spokesman said it was "firmly committed" to completing the dualling the A9.

He added that a review of the A96 corridor programme would report by the end of the year.

The spokesman said: "The Scottish government remains committed to improving road transport infrastructure throughout Scotland to improve road safety and bring economic benefits to users and local communities alike.

"We will continue to progress key road infrastructure commitments as set out in the original Capital Spending Review, with all spending as set out in the Scottish Budget 2022-23 confirmed. The Capital Spending Review differs from a detailed annual budget, project and programme level commitments will be outlined during the annual Budget process."

Newsletter

Related Articles

0:00
0:00
Close
UK Urges Poland to Choose Swedish Submarines in Multi-Billion € Defence Bid
US Border Czar Tom Homan Declares UK No Longer a ‘Friend’ Amid Intelligence Rift
UK Announces Reversal of Income Tax Hike Plans Ahead of Budget
Starmer Faces Mounting Turmoil as Leaked Briefings Ignite Leadership Plot Rumours
UK Commentator Sami Hamdi Returns Home After US Visa Revocation and Detention
UK Eyes Denmark-Style Asylum Rules in Major Migration Shift
UK Signals Intelligence Freeze Amid US Maritime Drug-Strike Campaign
TikTok Awards UK & Ireland 2025 Celebrates Top Creators Including Max Klymenko as Creator of the Year
UK Growth Nearly Stalls at 0.1% in Q3 as Cyberattack Halts Car Production
Apple Denied Permission to Appeal UK App Store Ruling, Faces Over £1bn Liability
UK Chooses Wylfa for First Small Modular Reactors, Drawing Sharp U.S. Objection
Starmer Faces Growing Labour Backlash as Briefing Sparks Authority Crisis
Reform UK Withdraws from BBC Documentary Amid Legal Storm Over Trump Speech Edit
UK Prime Minister Attempts to Reassert Authority Amid Internal Labour Leadership Drama
UK Upholds Firm Rules on Stablecoins to Shield Financial System
Brussels Divided as UK-EU Reset Stalls Over Budget Access
Prince Harry’s Remembrance Day Essay Expresses Strong Regret at Leaving Britain
UK Unemployment Hits 5% as Wage Growth Slows, Paving Way for Bank of England Rate Cut
Starmer Warns of Resurgent Racism in UK Politics as He Vows Child-Poverty Reforms
UK Grocery Inflation Slows to 4.7% as Supermarkets Launch Pre-Christmas Promotions
UK Government Backs the BBC amid Editing Scandal and Trump Threat of Legal Action
UK Assessment Mis-Estimated Fallout From Palestine Action Ban, Records Reveal
UK Halts Intelligence Sharing with US Amid Lethal Boat-Strike Concerns
King Charles III Leads Britain in Remembrance Sunday Tribute to War Dead
UK Retail Sales Growth Slows as Households Hold Back Ahead of Black Friday and Budget
Shell Pulls Out of Two UK Floating Wind Projects Amid Renewables Retreat
Viagogo Hit With £15 Million Tax Bill After HMRC Transfer-Pricing Inquiry
Jaguar Land Rover Cyberattack Pinches UK GDP, Bank of England Says
UK and Germany Sound Alarm on Russian-Satellite Threat to Critical Infrastructure
Former Prince Andrew Faces U.S. Congressional Request for Testimony Amid Brexit of Royal Title
BBC Director-General Tim Davie and News CEO Deborah Turness Resign Amid Editing Controversy
Tom Cruise Arrives by Helicopter at UK Scientology Fundraiser Amid Local Protests
Prince Andrew and Sarah Ferguson Face Fresh UK Probes Amid Royal Fallout
Mothers Link Teen Suicides to AI Chatbots in Growing Legal Battle
UK Government to Mirror Denmark’s Tough Immigration Framework in Major Policy Shift
UK Government Turns to Denmark-Style Immigration Reforms to Overhaul Border Rules
UK Chancellor Warned Against Cutting Insulation Funding as Budget Looms
UK Tenant Complaints Hit Record Levels as Rental Sector Faces Mounting Pressure
Apple to Pay Google About One Billion Dollars Annually for Gemini AI to Power Next-Generation Siri
UK Signals Major Shift as Nuclear Arms Race Looms
BBC’s « Celebrity Traitors UK » Finale Breaks Records with 11.1 Million Viewers
UK Spy Case Collapse Highlights Implications for UK-Taiwan Strategic Alignment
On the Road to the Oscars? Meghan Markle to Star in a New Film
A Vote Worth a Trillion Dollars: Elon Musk’s Defining Day
AI Researchers Claim Human-Level General Intelligence Is Already Here
President Donald Trump Challenges Nigeria with Military Options Over Alleged Christian Killings
Nancy Pelosi Finally Announces She Will Not Seek Re-Election, Signalling End of Long Congressional Career
UK Pre-Budget Blues and Rate-Cut Concerns Pile Pressure on Pound
ITV Warns of Nine-Per-Cent Drop in Q4 Advertising Revenue Amid Budget Uncertainty
National Grid Posts Slightly Stronger-Than-Expected Half-Year Profit as Regulatory Investments Drive Growth
×