Let me be clear that these proposals will be consulted on. The A38 Derby junctions and the A46 Newark bypass schemes are not in contract and are not scheduled to start main construction until the second half of the third road investment strategy. They are not as far progressed as RIS3 enhancement schemes elsewhere, meaning that the implications of potentially cancelling them would have a less significant impact compared with schemes that are further progressed.

The Government have cancelled the two main road projects in the east midlands—the A38 in Derby and the A46 in Newark. The Government did not inform anyone. The Labour mayor found out through the trade press that the Government had cancelled the contract, just as I did. What does the Secretary of State have against the east midlands? Will the incoming Prime Minister, who claims to want to see devolution and the empowerment of mayors, do something to fix this mess?

As part of the statutory intervention that commenced in October 2023, Commissioners continue to support Birmingham City Council’s improvement and recovery. My department regularly engages with both the Council and Commissioners, in line with standard practice, alongside receiving regular updates on progress, including on the Council’s financial sustainability and any specific financial pressures faced by the council.

Arrangements relating to the Birmingham Highways PFI contract are led by the Department for Transport. This government has taken significant steps to support councils financially, including Birmingham City Council, through the Fair Funding Review 2.0. The Local Government Finance Settlement has made up to £2,090m available in Core Spending Power for Birmingham City Council in 2028-29, which means that under this government Core Spending Power will increase by 45% from 2024-25 to 2028-29.

As part of the statutory intervention that commenced in October 2023, Commissioners continue to support Birmingham City Council’s improvement and recovery. My department regularly engages with both the Council and Commissioners, in line with standard practice, alongside receiving regular updates on progress, including on the Council’s financial sustainability and any specific financial pressures faced by the council.

Arrangements relating to the Birmingham Highways PFI contract are led by the Department for Transport. This government has taken significant steps to support councils financially, including Birmingham City Council, through the Fair Funding Review 2.0. The Local Government Finance Settlement has made up to £2,090m available in Core Spending Power for Birmingham City Council in 2028-29, which means that under this government Core Spending Power will increase by 45% from 2024-25 to 2028-29.

The letter from DfT officials will be deposited in the House of Commons Library.

The Government is committed to working with the Council to achieve a smooth transition away from its PFI arrangements for its local highways.

To support this, the Department has put in place future funding arrangements for Birmingham’s local highways. Starting this financial year, funding for the Council’s local highways will be provided via the West Midlands Combined Authority’s Integrated Settlement. For 2026/27, we will uplift the Combined Authority’s Integrated Settlement by £17 million, which was calculated using the Department’s local highways maintenance funding formula.

The Department has engaged the Council on its future plans for managing its local highways. However, procuring a new long-term contract for its local highways services is the Council’s responsibility.

The Department has taken careful note of the High Court ruling relating to the previous Government’s decision not to support the PFI arrangements for Birmingham City Council’s highway maintenance services.

The Department has subsequently conducted a consultation with the Council about the PFI contract and we have been carefully reviewing the Council’s detailed representations, with the Council’s support on clarification questions.

We are continuing to engage with the Council on the PFI with a view to confirming the decision on whether or not to support the continuation of the PFI contract as soon as possible.

I am committed to working together with Birmingham City Council to find a way forward which is in the best interests of the people of Birmingham and the taxpayer.

The Department has paid Birmingham City Council (BCC) a little over £50 million a year, broken down into quarterly payments of £12.6 million, from 2020-21 to 2024-25 in support of its PFI contract for its local highways. Payments from the council to its primary contractor are a matter for BCC.

A copy of the letter will be deposited in the House of Commons Library.

Department for Transport officials sent a letter to Birmingham City Council’s chief executive to acknowledge receipt of the letter in question and to offer a meeting to discuss the PFI contract. The letter from DfT officials will be deposited in the House of Commons Library.

Litter picking is an activity undertaken as part of National Highways’ cyclical maintenance programme by its maintenance and response contractors.

To monitor and manage their performance, National Highways undertakes monthly performance reviews of each of their maintenance and response contractors. This is done through the Collaborative Performance Framework which includes a metric on sweeping and cleaning. Scores are reviewed and discussed with the supplier at a monthly performance review meeting where any areas of underperformance are addressed.

Additionally, National Highways carry out annual audits of each contractor through Service Quality Reviews, as set out in their ‘perform quality audit’ process. These audits are undertaken by National Highways’ quality performance assurance teams and National Highways does not hesitate to take remedial action where required.

The Department has assessed the viability of a range of alternative schemes to the Birmingham PFI contract. Following this, we have committed to continue Birmingham’s existing funding at approximately £50m for 2024/5. In subsequent years, Birmingham would be allocated formula funding in the same way as other local highways authorities across the country, as part of the highways maintenance block grant. This will be paid via the West Midlands Combined Authority in the usual way.

The Department will increase the additional funding going to the West Midlands Combined Authority (WMCA) under the Network North Roads Resurfacing fund to take account of the fact that the allocations announced in November 2023 did not include an amount for Birmingham. WMCA is also benefiting from over £1 billion of City Region Sustainable Transport Settlement (CRSTS) funding up to 2026/27, and set to benefit from indicative CRSTS2 funding of over £2.6 billion between 2027/28 and 2031/32.

The Government has funded Birmingham City Council’s Highways Maintenance contract at £50.3 million a year for 13 years and will continue to do so, maintaining the current level of funding to the council at £50 million a year for the remainder of the current spending review period until 2023/24.

After this time, West Midlands Combined Authority (WMCA) will become eligible for an additional share of the £8.3 billion as the £151 million for WMCA did not previously include an allocation for Birmingham City Council’s roads. This is part of the £2.2 billion wider funding for East Midlands and West Midlands.

This is in addition to the £1bn of CRSTS funding to WMCA up to 2026/27, and CRSTS 2 indicative funding of over £2.6billion over 5 years from 2027/28 to 2031/32.

The Government has funded Birmingham City Council’s Highways Maintenance contract at £50.3 million a year for 13 years and will continue to do so, maintaining the current level of funding to the council at £50 million a year for the remainder of the current spending review period until 2023/24.

After this time, West Midlands Combined Authority (WMCA) will become eligible for an additional share of the £8.3 billion as the £151 million for WMCA did not previously include an allocation for Birmingham City Council’s roads. This is part of the £2.2 billion wider funding for East Midlands and West Midlands.

This is in addition to the £1bn of CRSTS funding to WMCA up to 2026/27, and CRSTS 2 indicative funding of over £2.6billion over 5 years from 2027/28 to 2031/32.

The Government has funded Birmingham City Council’s Highways Maintenance contract at £50.3 million a year for 13 years and will continue to do so, maintaining the current level of funding to the council at £50 million a year for the remainder of the current spending review period until 2023/24.

After this time, West Midlands Combined Authority (WMCA) will become eligible for an additional share of the £8.3 billion as the £151 million for WMCA did not previously include an allocation for Birmingham City Council’s roads. This is part of the £2.2 billion wider funding for East Midlands and West Midlands.

This is in addition to the £1bn of CRSTS funding to WMCA up to 2026/27, and CRSTS 2 indicative funding of over £2.6billion over 5 years from 2027/28 to 2031/32.

The Government has funded Birmingham City Council’s Highways Maintenance contract at £50.3 million a year for 13 years and will continue to do so, maintaining the current level of funding to the council at £50 million a year for the remainder of the current spending review period until 2023/24.

After this time, West Midlands Combined Authority (WMCA) will become eligible for an additional share of the £8.3 billion as the £151 million for WMCA did not previously include an allocation for Birmingham City Council’s roads. This is part of the £2.2 billion wider funding for East Midlands and West Midlands.

This is in addition to the £1bn of CRSTS funding to WMCA up to 2026/27, and CRSTS 2 indicative funding of over £2.6billion over 5 years from 2027/28 to 2031/32.

The Government is currently considering the Business Case for a revised contract for Birmingham Highways Maintenance following the failure of Birmingham's original PFI deal. A decision is expected in due course.

Highways maintenance is a critical and statutory function for all Local Authorities and the government will continue to support authorities to fulfil this function.

Commissioners have oversight of strategic financial decision-making at the Council and they will want to be satisfied that the contract achieves value for money for Birmingham residents. They are providing advice and challenge to the council, and are able to make decisions directly, if necessary.