Strategy
PwC and its alliance partners helped National Highways secure a five year funding settlement by creating a ‘golden thread’ strategy that linked robust risk and economic analysis to a compelling investment narrative, delivered through an integrated, capability building model that strengthened the organisation’s strategic maturity and its ability to defend long term funding amid political uncertainty.
National Highways is responsible for operating, maintaining and improving England’s 4,500‑mile strategic road network – a national asset that carries a third of all motorised traffic, and underpins economic growth, freight movement and access to services. Every five years, the organisation must secure a multi‑billion‑pound funding settlement through the government’s Road Investment Strategy (RIS). This settlement determines the network’s safety, reliability and long‑term resilience. For the third funding cycle (RIS3), National Highways faced a more complex environment than ever before: a changing profile of work, high inflation, volatile supply chains, and changing customer expectations, all against the background of high level of interest from the Department for Transport, HM Treasury and the Office of Rail and Road.
The organisation needed a credible, evidence‑based strategy that could support Government ambitions and justify long‑term investment. It also wanted to build its own strategic capability. Previous settlements had relied heavily on external consultants, and National Highways sought to become more self‑sufficient in shaping future RIS cycles. The stakes rose further in 2024 when a change of government delayed the settlement and introduced a one‑year interim funding period, raising the possibility of a return to annual budgets..It became even more important for National Highways to develop a strong plan that could continue to drive economic growth and provide certainty to the supply chain, while being adaptable to external changes.
To meet this challenge, National Highways formed an alliance with PwC, AtkinsRéalis and Jacobs to act as its integrated Technical Partner. Working as a single, badge‑less team, the alliance combined strategic advisory, engineering insight, economic analysis and risk expertise. Together, they developed a ‘golden thread’ linking complex technical evidence to strategic decisions and a coherent investment case. This approach ensured that analysis, risk modelling and narrative were aligned, enabling National Highways to present a clear, defensible rationale for long‑term funding.
A coaching‑through‑delivery model paired alliance specialists with National Highways leaders and practitioners, embedding capability as the strategy was built. This enabled the client team to develop practical skills in strategic planning, risk assessment and investment case development, strengthening its ability to lead future funding rounds. The alliance also supported deeper engagement with HM Treasury, shaping a narrative that reflected funders’ expectations.
When the political context shifted, the alliance helped National Highways adapt its plan, strengthen its argument for five‑year certainty, and demonstrate how long‑term funding would protect value‑for‑money, support productivity, and maintain network performance.
The outcome was a £27bn five year settlement, with considerable step up for renewals, secured despite fiscal constraints. This settlement provides the long‑term certainty needed to plan efficiently, reduce supply chain risk, and deliver safety, reliability and congestion improvements for road users. It also validated the alliance’s core aim: National Highways demonstrated that it could lead a complex funding cycle with reduced external reliance.
The programme leaves a lasting legacy. National Highways now has a stronger strategic planning function, a clearer understanding of portfolio risk and a repeatable model for future RIS cycles. The integrated approach has improved relationships with government and regulators, strengthened leadership cohesion, and created a more resilient foundation for managing one of the UK’s most important national assets.
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