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Government Reallocates Capital to Fund £15bn Defence Boost, Putting Two Major East Midlands Road Schemes at Risk

The decision triggers DfT consultations that could free up to £700m from road spending to help pay for the defence increase.

Overview

  • Prime Minister Keir Starmer announced a £15 billion top-up to defence spending in a speech on Tuesday and said some non‑urgent capital projects would not go ahead as planned.
  • A joint Ministry of Defence and Department for Transport statement said the DfT will consult on cuts to the third Road Investment Strategy that could identify up to £700 million from roads funding.
  • The A38 Derby Junctions and the A46 Newark Bypass have been named for possible cancellation and are now officially under consultation and at risk of being delayed or dropped.
  • National Highways has already cancelled a roughly £297–300 million contract with Skanska for the A46, creating immediate contractual disruption for that scheme.
  • Local leaders and MPs have demanded urgent meetings and cross‑party submissions, warning the moves would harm local safety, housing delivery and the East Midlands economy while timetables for the consultations remain unclear.