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CMA Initiates Market Study on UK Road and Railway Infrastructure Delivery

By  |  June 22, 2025

The Competition and Markets Authority (CMA) has commenced a new market study targeting the design, planning, and execution of road and railway infrastructure across the UK. According to a statement from the CMA, this initiative comes at a critical juncture as the government outlines its long-term infrastructure strategy and pursues legislative reforms.

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    This study marks the CMA’s first market investigation since the government issued its strategic guidance for the authority. Per a statement, the CMA plans to conduct the review in line with its ‘4Ps’ framework—focusing on pace, predictability, proportionality, and enhanced processes—to foster more effective engagement with stakeholders involved in the sector.

    The investigation will explore opportunities to enhance collaboration between the public sector and industry, particularly through potential improvements in public procurement practices. According to a statement, the goal is to support the government’s broader growth objectives by enabling more cost-effective infrastructure delivery. While the study will likely culminate in recommendations for government action, it does not grant the CMA direct powers to intervene in the market.

    The civil engineering industry contributed approximately £23 billion to the UK economy in 2023. This market study could provide a catalyst for boosting productivity, simplifying procurement processes, and reducing entry barriers within the sector. Additionally, the CMA anticipates that improvements in infrastructure delivery could have a multiplier effect by facilitating better access to employment and lowering transportation costs for goods.

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    The National Infrastructure Commission has projected that public and private investment in infrastructure must rise by 30% to 50% over the next ten years to meet the demands of increasingly complex projects. However, the Commission also noted that the sector’s current performance is suboptimal, and system-wide reforms could generate savings of between 10% and 25% on infrastructure expenditures.

    Road and railway projects represent roughly 70% to 75% of government spending on economic infrastructure—assets crucial to the functioning of the economy, such as highways and power grids. Building on preliminary evidence, the CMA’s review will focus on several key areas:

    • Ensuring that public authorities have access to comprehensive and relevant information to make informed procurement decisions for roads and railways, while assessing their capacity to collaborate effectively with industry partners to deliver projects on schedule, within budget, and to the required standards.
    • Identifying whether procurement, planning, or regulatory frameworks impose significant and unnecessary barriers that limit companies’ abilities and incentives to enter, grow, invest in, or innovate within the market.
    • Evaluating what adjustments might be necessary to optimize the infrastructure ecosystem, encouraging civil engineering firms to contribute toward maximizing UK productivity and economic growth through enhanced delivery of public road and railway projects.

    According to a statement, this comprehensive study aims to guide future government policy and ensure that infrastructure investments deliver maximum value for the economy and society at large.

    Source: Gov UK