Government Writes Off £2.7bn in Cancelled Transport Projects, Says NAO

The government has written off £2.7 billion over the past two years as a result of cancelled road and rail schemes, according to a new report from the National Audit Office (NAO).

The spending watchdog found that since 2023, several major Department for Transport (DfT) projects have been abandoned due to affordability concerns and shifts in government priorities. The write-offs reflect funds already spent on design work, early delivery activities, and assets that have now lost value following cancellation.

Among the largest losses was HS2 Phase 2, which accounted for £2.17 billion. Other major write-offs included:

• A303 Amesbury to Berwick Down (Stonehenge tunnel) – £224 million

• All-lane-running smart motorways – £62 million

• A1 Morpeth to Ellingham Dualling – £68 million

• A27 Arundel Bypass – £67 million

• A358 Taunton to Southfields – £67 million

  
  

A further £46 million was lost through the cancellation of four other road projects: the A5036 Princess Way, A47 Great Yarmouth Junction Enhancement, M27 Southampton Junction 8, and the A27 Worthing & Lancing Improvements.

Overall, the DfT spent £20.4 billion on capital projects and £20.9 billion in revenue expenditure in the financial year to March 2025, covering HS2, Network Rail, and National Highways programmes.

In August 2025, the DfT published its draft Road Investment Strategy 3 (RIS3), outlining plans for National Highways’ next five-year period. The strategy proposes a shift in focus toward maintaining and renewing existing infrastructure rather than expanding capacity through new roads or bypass schemes.