In 2023/24, Costain emerged as the leading supplier to National Highways.
- Costain secured the top position for the third consecutive year, despite reduced payments.
- Connect Plus, tied to Balfour Beatty, maintained a strong second place, increasing its revenue.
- Balfour Beatty faced project delays, including the £1.2bn Lower Thames Crossing.
- National Highways’ draft strategy and other projects were affected by political developments.
The 2023/24 financial year saw Costain retain its position as the largest supplier to National Highways, despite a reduction in revenue compared to the previous year. The contractor received £450 million, marking the third year it has led the ranking, even as its work in the roads sector declined. One of Costain’s significant projects includes a £285 million upgrade of the M6, enhancing connectivity across Merseyside, Cheshire, and Greater Manchester.
Connect Plus, the consortium managing and upgrading the M25, emerged as the second-highest recipient of funds from National Highways. With a payout of £447.9 million, the consortium, in which Balfour Beatty holds a 15% stake alongside Egis and AtkinsRéalis, increased its earnings by £55.3 million from the prior year. The M25 underwent significant work, including its first complete closure between junctions 10 and 11 as part of ongoing upgrades.
Meanwhile, Balfour Beatty received £392.2 million for its endeavours, including the ongoing £355 million A63 Castle Street upgrade in Hull. Despite this, the contractor is grappling with delays on major projects such as the £1.2 billion Lower Thames Crossing, primarily due to delays in government approval linked to the general election.
The general election also impacted National Highways’ broader strategy. A draft of the organisation’s third road-investment strategy for 2025-30 was postponed, and party pledges, particularly from Labour, have targeted revisions of certain projects considered low value for money. This political landscape underscores the volatile environment in which these contractors operate.
Additionally, National Highways faced scrutiny from the Office of Rail and Road, which launched an investigation into its performance. This evaluation followed concerns over capital portfolio and asset management strategies, further highlighting challenges within the sector. Moreover, legal victories for National Highways in challenges to road plans such as the A303 Stonehenge Tunnel underscore the complex legal and regulatory environment that impacts infrastructure development.
The latest financial year reflects both the resilience and challenges faced by top National Highways contractors amid an evolving political and economic climate.
