Commentary on Sections Part 1 – Strategic Highways Companies
22.The strategic road network (SRN) is a network of motorways and trunk roads consisting of around 2% of England’s roads and carrying a third of its traffic. The Highways Agency (HA) is the executive agency of the Department for Transport (DfT) responsible for the maintenance, operation and enhancement of the SRN on behalf of the Secretary of State.
23.In June 2013, Investing in Britain’s Future [Command Paper Cm. 8669] announced the Government’s spending plans for roads up to 2020-21. Details of how this would be delivered were firmed up in Action for Roads [Command Paper Cm. 8679], published by the DfT in July 2013, alongside proposals on how to reform the existing institutional set-up to ensure delivery of the investment package whilst maximising efficiency. On 29 October 2013, DfT published a consultation document Transforming the Highways Agency into a Government owned company.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/209279/PU1524_IUK_new_template.pdf
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/212590/action-for-roads.pdf
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/254356/roads-reform-consultation-document.pdf
24.The consultation put forward proposals for:
	The creation of an arms-length Government-owned company and the transfer of powers and duties to allow it to discharge functions that were discharged by the Highways Agency.
	New legislation to underpin the long term funding settlement and new Road Investment Strategy (RIS) processes.
	Power for the Secretary of State to make transfer schemes which would allow assets and liabilities (including land and contractual obligations) to be transferred to a strategic highways company.
	Arrangements for two bodies - a road user watchdog and efficiency monitor - providing independent scrutiny of the company’s performance, advising government and being a focal point for road users.
25.The Government published its response on 30 April 2014 and confirmed its intention to bring forward its proposals. The strategic highways company will be incorporated under the Companies Act 2006 limited by shares where the sole shareholder is the Secretary of State. The Government confirmed its intention to establish a governance framework for the strategic highways company comprising legislation, a licence document containing statutory directions and guidance, a Framework Agreement, a Road Investment Strategy and Articles of Association. Those proposals requiring primary legislation are provided for in this Act.
26.The Transport Select Committee published its report Better Roads: Improving England’s Strategic Road Network (HC 850) on 7 May 2014. The Government’s response was published on 24 October 2014 (HC 715). The name for the new organisation, Highways England, was announced on 8 December 2014.
http://www.publications.parliament.uk/pa/cm201415/cmselect/cmtran/715/71502.htm