{"id":433855,"date":"2026-05-21T18:25:37","date_gmt":"2026-05-21T08:25:37","guid":{"rendered":"https:\/\/railuk.com\/?p=193685"},"modified":"2026-05-21T18:25:37","modified_gmt":"2026-05-21T08:25:37","slug":"cma-recommends-overhaul-of-rail-procurement-to-cut-costs-and-drive-growth","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=433855","title":{"rendered":"CMA recommends overhaul of rail procurement to cut costs and drive growth"},"content":{"rendered":"

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The Competition and Markets Authority (CMA) has published the findings of its market study into road and rail infrastructure and is recommending concrete actions to drive down costs and drive up innovation and productivity.<\/p>\n

Following 11 months of in-depth analysis and engagement across government, procuring authorities and businesses, the CMA\u2019s market study on public road and rail infrastructure highlights the cost of historic approaches, and the scale of the opportunity for reform.<\/p>\n

The CMA is recommending government embraces a more strategic and coordinated approach to delivering road and rail infrastructure with a clear plan for the sector. Alongside recommending concrete actions in road and rail, the CMA believes that the lessons learned have broader applicability across public infrastructure procurement.<\/p>\n

Sarah Cardell, chief executive of the CMA, said: \u201cOur work on civil engineering shows that a short term and fragmented approach to procurement in road and rail is driving up costs, slowing delivery and holding back innovation.<\/p>\n

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\u201cThis is an opportunity for systemic change \u2013 but it requires strong central coordination, and a reframing of road and rail procurement as a lever for growth and innovation. The CMA will continue to play its part, bringing independent advice, analysis and practical solutions to drive economic growth.\u201d<\/p>\n

Around \u00a319 billion of taxpayers\u2019 money was spent on public road and railway infrastructure in 2023\/24 (excluding High Speed 2). These markets have long underdelivered on productivity, innovation and the speed of delivery. The CMA\u2019s market study identifies the key drivers \u2013 funding uncertainty, short-term decision making, complex regulation and capability gaps \u2013 and proposes concrete steps to address them.<\/p>\n

External research, highlighted in the CMA\u2019s report, shows UK and devolved governments could potentially save up to \u00a35 billion a year by addressing the challenges in the market, while also reducing delivery times, increasing innovation and investment, and supporting UK firms to grow and compete.<\/p>\n

Key recommendations from the CMA\u2019s targeted package of reforms in public road and rail civil engineering include:<\/p>\n