DfT: annual report and accounts 2025 to 2026 · first published 15 July 2026
This is the Department for Transport's (DfT's) consolidated annual report and accounts for the financial year 1 April 2025 to 31 March 2026, presented to Parliament in July 2026. It sets out DfT's financial performance (total expenditure of approximately £33 billion), progress against its three strategic outcomes — enhancing growth and place, improving journeys for people, and delivering green and healthy transport — and major programme updates including HS2, Northern Powerhouse Rail (NPR), East West Rail (EWR) and Road Investment Strategy 3 (RIS3). The document is an internal accountability and governance report, not a procurement policy. It does not set or change any evaluation criteria, weightings, thresholds or supplier obligations. SMEs should treat it as useful market intelligence about where DfT capital is flowing over the next spending review period, rather than as a document that directly changes how they should bid.
WHO THIS APPLIES TO
THE ENKII VIEW
The report signals very large, sustained capital pipelines — over £27 billion in roads (RIS3), up to £45 billion for Northern Powerhouse Rail, £2.5 billion for East West Rail, and a record £7.3 billion for local highways maintenance to 2029–30 — which point to real contracting opportunities for SMEs in construction, engineering, maintenance and supply-chain roles over the next five years. The shift toward local and mayoral control of transport funding (consolidated settlements, Bus Services Act, devolution) means more commissioning activity will flow through combined authorities and local highway authorities, which are often more SME-accessible than central DfT contracts. However, because this is purely an accounts and performance document, it contains no procurement rules that SMEs must act on immediately.
1. Monitor procurement portals for local highway authorities, especially those rated 'red' under DfT's January 2026 road maintenance ratings — DfT announced a dedicated support programme for these authorities, meaning they are likely to be actively commissioning maintenance and improvement work.
SMEs in highways maintenance, civil engineering and road construction — DfT published red, amber or green road maintenance ratings for each highway authority and announced a dedicated support programme for red-rated authorities, backed by a record £7.3 billion committed to local highways maintenance to 2029–30.
2. Identify and approach Tier 1 contractors already appointed on TRU, EWR, NPR and HS2 to explore sub-contracting and supply-chain opportunities — these programmes collectively represent tens of billions in committed capital spend over the next decade.
SMEs in rail construction, engineering, and supply chain — The document confirms £45 billion for NPR, £2.5 billion for EWR central/eastern sections, and ongoing HS2 construction (£7 billion in assets under construction in 2025–26 alone), signalling a sustained demand for supply-chain capacity.
3. Watch for Active Travel England grant competitions and local authority commissions funded by the near-£300 million commitment — register on Contracts Finder and your regional procurement portal now.
SMEs in active travel, cycling infrastructure and sustainable transport — DfT committed almost £300 million to Active Travel England walking, wheeling and cycling schemes and launched the Cycling and Walking Investment Strategy 3 consultation, indicating further commissioning activity ahead.
4. Track DfT and OZEV (Office for Zero Emission Vehicles) procurement notices for EV (electric vehicle) charging infrastructure rollout — the Autumn Budget 2025 increased investment in the Electric Vehicle Grant and Electric Vehicle Charging Infrastructure for 2025–26.
SMEs in zero-emission vehicle charging infrastructure and green transport technology — DfT rolled out over 119,000 more public chargers and the Autumn Budget 2025 increased investment in EV charging infrastructure, pointing to continued commissioning of installation and maintenance services.
5. Engage with Mayoral Strategic Authorities and local leaders who now have greater powers under the Bus Services Act to shape routes and fares — these bodies will be commissioning new services, technology and operational support.
SMEs in bus operations, technology and passenger services — The Bus Services Act received Royal Assent giving local leaders control over routes and fares, and over 20 funding streams were consolidated into a single flexible settlement giving mayors greater control over transport investment.
Every rule below quotes the official document verbatim.
DfT's capital budget for 2025–26 was £21.6 billion, covering roads, rail and other transport infrastructure. (DfT Group, financial year 2025–26)
“For 2025 to 2026 DfT had a capital budget of £21.6 billion, a full policy agenda and a wide range of direct operational delivery activities”
Total DfT Group expenditure was approximately £33 billion in 2025–26, up from approximately £32 billion the previous year. (DfT Group, financial year 2025–26)
“DfT Group incurred £33 billion of expenditure in 2025 to 2026 compared to £32 billion in the previous year”
Road Investment Strategy 3 (RIS3) commits over £27 billion for the strategic road network from 2026 to 2031, including £24.99 billion for operating, maintaining, renewing and enhancing the network. (Strategic road network in England, 2026–2031)
“DfT published Road Investment Strategy 3 (RIS3): 2026 to 2031, which sets out how the government will invest over £27 billion to make sure the SRN serves everyone. This includes £24.99 billion to operate, maintain, renew and enhance the network.”
A record £7.3 billion has been committed for local highways maintenance through to 2029–30. (Local highway authorities in England, to 2029–30)
“a record £7.3 billion committed for local highways maintenance through to 2029 to 2030 to improve road conditions and network resilience”
25% of highways maintenance funding uplifts are now conditional on local highway authorities publishing road condition reports and demonstrating best-practice spending. (Local highway authorities in England receiving DfT maintenance funding uplifts)
“With 25% of the highways maintenance funding uplifts now conditional on local highway authorities publishing reports on the condition of their roads, how much they are spending to maintain them and whether they do so using best practice.”
Northern Powerhouse Rail has a confirmed government funding envelope of up to £45 billion, with £1.1 billion allocated in this Parliament for design and development. (Northern Powerhouse Rail programme)
“the Secretary of State confirmed plans for delivery of NPR, with a government funding envelope of up to £45 billion and a 3-phase delivery approach… £1.1 billion has been allocated in this Parliament for further design and development work”
East West Rail received a £2.5 billion SR25 commitment to progress the scheme beyond Oxford–Bletchley into delivery of the central and eastern sections. (East West Rail programme)
“committed £2.5 billion at the SR25 to progress the scheme beyond the Oxford–Bletchley section and into delivery of the central and eastern sections”
HS2 total expected cost is now £87.7 billion to £102.7 billion (2025 prices); first trains expected between May 2036 and October 2039. (HS2 programme)
“the project now expected to cost between £87.7 billion and £102.7 billion in 2025 prices… The first trains are expected to run between Old Oak Common and Birmingham Curzon Street between May 2036 and October 2039.”
Capital DEL spending (excluding HS2) will grow at an average real-terms rate of 3.9% per year from 2025–26 to 2029–30. (DfT capital DEL (excluding HS2), Spending Review period to 2029–30)
“Excluding HS2, which is presented separately in SR25 given the scale of the programme, capital DEL spending will continue to increase at an average real terms growth rate of 3.9% per year between 2025 to 2026 and 2029 to 2030.”
DfT committed almost £300 million to Active Travel England walking, wheeling and cycling schemes. (Active travel programmes in England)
“committed almost £300 million to Active Travel England walking, wheeling and cycling schemes”
The £3 bus fare cap was extended to March 2027. (Bus services in England)
“In June 2025, the £3 bus fare cap was extended to March 2027”
DfT transferred four more train operating companies into public ownership during 2025–26: South Western Railways (May 2025), c2c (July 2025), Greater Anglia (October 2025) and West Midlands Trains (February 2026). (Rail passenger services, England)
“The following contracts transferred to DFTO during 2025 to 2026: South Western Railways in May 2025, c2c in July 2025, Greater Anglia in October 2025 and West Midlands Trains in February 2026.”
DfT expects the transfer of all train operating companies to public ownership to conclude by end of 2027. (Train operating company public ownership programme)
“DfT expects this will conclude by the end of 2027.”
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