London Daily

Focus on the big picture.
Thursday, Mar 12, 2026

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
Release of Mandelson Files Raises Tensions as UK Seeks Stable Relations With Donald Trump
UK Documents Reveal Starmer Was Warned About Mandelson’s Epstein Links Before Ambassador Appointment
Nearly Five Hundred UK Mortgage Deals Withdrawn in Two Days as Market Volatility Forces Lenders to Reprice
Three Cargo Ships Hit Near Iran as Attacks Spread to Strategic Strait of Hormuz
Why British Police Repeatedly Declined to Investigate Jeffrey Epstein’s UK Links
UK Parliament Ends Hereditary Seats in House of Lords, Closing Chapter on Centuries of Aristocratic Lawmaking
EU and UK Urge Israel to Act Against Rising West Bank Settler Violence Amid Regional Tensions
US Senator John Kennedy Says Keir Starmer Should Not Be Trusted for Military Advice Amid Iran War Debate
UK High Court Rejects Attempt to Revive Terrorism Charge Against Kneecap Rapper
Revolut Secures Full UK Banking Licence After Multi-Year Regulatory Wait
Kentucky’s Bench Boost Powers Wildcats Past LSU in SEC Tournament Opener
British Couple Die After Being Pulled From Water at Australian Beach During Family Visit
Global Energy Agency Announces Record Release of 400 Million Barrels to Stabilize Oil Markets Amid Hormuz Disruption
British Airways Suspends UK Repatriation Flights as Middle East Travel Disruption Deepens
US Forces Prepare Ordnance at RAF Fairford as Strategic Bombers Deploy for Middle East Operations
Nigel Farage Faces Criticism After Saying Britain Should Stay Out of Iran War
Landmark UK Trial Begins Over Sony’s PlayStation Store Pricing
UK High Court Rejects Bid to Challenge Britain’s Chagos Islands Agreement With Mauritius
Finnish Duo Triumphs in England’s Annual Wife-Carrying Race, Winning a Barrel of Ale
How U.S. and UK National Security Strategies Are Reshaping the Global Business Landscape
Green Party Gains Momentum as Labour Shifts Toward the Political Centre
Royal Navy Destroyer HMS Dragon Sets Sail for Eastern Mediterranean as Regional Tensions Rise
UK Homebuilder Persimmon Warns Iran Conflict Could Dent Property Buyer Confidence
Roman Abramovich Signals Legal Fight if UK Seeks to Seize Chelsea Sale Funds
UK Ready to Back Emergency Oil Reserve Release as Middle East Conflict Pushes Prices Higher
Study of 40,000 Articles Sparks Debate Over Alleged Anti-Muslim Bias in UK Media
US and UK Army Chiefs Strengthen Cooperation on the Future of Armored Warfare
Britain’s Search for the Next ARM Intensifies as Startups and Investors Target the Semiconductor Frontier
Three US Strategic Bombers Arrive at RAF Fairford as Iran Conflict Intensifies
Cancer Death Rates in the UK Fall to the Lowest Level on Record
UK Government Bond Yields Retreat Slightly After Sharp Spike Triggered by Middle East Conflict
UK Chancellor Warns Middle East War Could Push Inflation Higher
UK Prime Minister Warns Iran Conflict Could Drive Up Prices and Threaten Economic Stability
Trump Declines UK Offer to Deploy Aircraft Carriers to Middle East Amid Iran Conflict
Prince Harry and Meghan Markle to Return to Australia After Seven Years for Philanthropic and Business Engagements
UK Government Signals Independence From Washington as Cooper Says Britain Does Not Agree With Trump on Every Issue
UK Experts Warn AI Chatbots Are Fueling Surge in Claims of Organised ‘Satanic’ Ritual Abuse
UK Political Parties Divided Over Strategy as Iran Conflict Reshapes Foreign Policy Debate
Britain Discloses Secret Military Repair Hubs Operating Inside Ukraine
Trump Says US No Longer Needs UK Carrier Support After Delayed Offer Amid Iran Conflict
Why Britain Has Become Involved in the US-Israel Military Campaign Against Iran
UK Gas Storage Falls to Under Two Days as Iran Conflict Jolts Global Energy Markets
UK Warned to Brace for Economic Shock as Iran War Drives Global Energy Price Surge
Starmer and Trump Hold First Call After Public Dispute Over Iran Conflict
UK Dentists Returned £1.3 Billion to Government as Shift Toward Private Care Accelerates
Expert Warns UK Must Build Emergency Food Stockpiles to Prepare for Climate Shocks or War
UK Plans Charter Flight to Evacuate British Nationals from Gulf as Regional Conflict Disrupts Air Travel
Families of Zimbabwe’s Liberation Fighters Call on Britain to Help Locate Skulls Taken During Colonial War
Iran’s Ambassador Warns Britain to ‘Be Very Careful’ Over Deeper Role in Expanding Middle East War
UK Military Leadership Defends Britain’s Defensive Role in Expanding Middle East Conflict
×