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Next steps | Update on Birmingham's highways PFI contract | Birmingham City Council

Next steps

Our priority is to continue delivering statutory highway functions and services across Birmingham and to keep people using the network safe.

Long-term arrangements

Following the Department for Transport's recent decision to withdraw its support for the continued funding of our highways Private Finance Initiative (PFI) project, we will procure a long-term replacement.

We will undertake a procurement exercise, including market engagement, to develop a future operating model in line with the funding available.

Interim arrangements

To enable this procurement process, services will continue on an interim basis.

We propose to enter into a variation agreement to extend the Interim Services Contract (ISC) until 31 July 2028.

We may extend the ISC until 30 April 2029 using the option set out in the variation agreement.

Continued service delivery

The variation agreement will ensure the uninterrupted delivery of critical public services and help us continue to meet our statutory duties.


Page last updated: 31 July 2026