Statement regarding Birmingham Highways Maintenance and Management Services PFI

Birmingham City Council has been successful in Judicial Review proceedings against the Department for Transport in relation to its decision to discontinue funding for the Council’s Highways Maintenance and Management PFI arrangement.

The judgment, published on Monday 17 June 2024, held that the Department for Transport’s decision was unlawful and so it has been quashed.

While the Council has been successful in the legal proceedings, the Council’s foremost priority is the continued delivery of statutory highway functions and services across the city, ensuring the safety of citizens and visitors across the network.

The Council will continue to ensure the delivery of services via the current interim services contract that is delivered by Kier to allow for the time required for DfT to retake its decision on the PFI.

The Council will now work with Government and stakeholders in an attempt to secure the long-term future of the PFI arrangement, which demonstrate significant value for money and provide for sustainable investment in the city’s highway infrastructure, benefitting the entire region.


Birmingham’s Highways Maintenance and Management services are currently delivered through a PFI contract.

The Council’s Highways Maintenance and Management PFI contract is one of the largest PFI contracts in the UK and is the principal means through which the Council discharges its statutory duties under the Highways Act 1980.

The contract combines approximately £50m PFI funding from government in the form of PFI credits, in addition to the council’s ring-fenced revenue budget contribution - approximately £56m per annum (indexed) for the purposes of providing routine and reactive maintenance, and major planned maintenance and investment works on the city’s highway network and highway assets.

On Thursday 30 November 2023, the Council received formal confirmation from the Department of Transport that the Government would not approve continuation of the existing funding arrangement.

The Council subsequently commenced Judicial Review proceedings in relation to the Government’s decision.

A two-day hearing took place on 21 to 22 March 2024 at Birmingham Civil and Family Justice Centre.

The judgment can be read in full online

Page last updated: 17 June 2024

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