The Competition and Markets Authority (CMA) has published its interim report as part of its ongoing market study into the civil engineering sector supporting public road and railway infrastructure.
Civil engineering plays a central role in the UK’s economic infrastructure, underpinning transport networks that connect people, businesses and communities. Through this study, the CMA is applying its competition lens to assess how supply chains, public procurement and regulation operate, and how they could be improved to deliver better value for the public purse and stronger outcomes for the wider economy.
The work reflects the CMA’s strategic commitment to promoting competition and providing expert advice to government, with a particular emphasis on procurement practices and regulatory barriers that may be constraining growth and productivity.
The market study builds on analysis already undertaken by other bodies, including the National Infrastructure and Service Transformation Authority, which was established earlier this year through the merger of the National Infrastructure Commission and the Infrastructure and Projects Authority. Both organisations have previously highlighted challenges around infrastructure costs, planning and delivery.
In its interim report, the CMA sets out evidence suggesting that the market is delivering suboptimal outcomes. It provisionally identifies a number of areas where improvements could be made, including addressing uncertainty in project pipelines, strengthening public procurement policy, tackling capacity constraints and reducing regulatory barriers. These potential options will be tested and developed further as the study progresses.
Sarah Cardell, Chief Executive of the CMA, said:
“Transport is vital to the UK economy and the prosperity of households across the country. Civil engineering is key to making sure this network operates effectively – and a well-functioning market helps boost growth and productivity by improving connectivity for businesses and people across the UK.
“The CMA is committed to stepping up its role as an enabler of competition. Building on the work of other expert bodies in this field, we’re focused on identifying concrete ways to deliver better outcomes in these critical infrastructure markets. Early areas of focus include enhanced competition and innovation in supply chains, through greater opportunities for scaling and removal of regulatory barriers – and more effective public procurement processes. At the same time, we want to enable legitimate collaboration – across government, public authorities and industry – to support investment and growth.
“We’ll continue our work to develop and refine our initial proposals into a mutually reinforcing package of measures, engaging further with the sector as we do so.”
The study, launched in June 2025, is the first conducted under the CMA’s 4Ps framework – pace, predictability, proportionality and process – designed to ensure a transparent, participative and efficient approach to market analysis and stakeholder engagement.
The CMA’s provisional view is that the civil engineering market for public roads and railways is caught in a negative cycle that is limiting its ability to support UK growth and productivity. At this stage, the authority considers key contributing factors to include uncertain and short-term funding arrangements, a risk-averse culture and regulatory barriers to entry and expansion.
In the next phase of the study, the CMA will focus on exploring ways to create a more stable and predictable funding environment, strengthening procurement capability across public bodies, encouraging a more balanced approach to risk, streamlining regulatory processes and accreditations, and fostering greater collaboration and consistency across government, authorities and industry.
The CMA is now seeking views from across the sector on the issues identified and the potential options for reform. Stakeholders are invited to engage through meetings, webinars and roundtables, with written submissions accepted until 5.00pm on 28 January 2026.
A final report, including recommendations for government and public authorities, is due to be published in spring 2026.
The interim report also highlights the scale of the market, noting that road and rail projects account for around 70–75% of government spending on economic infrastructure, with approximately £19 billion spent each year on maintaining and enhancing public roads and railways, excluding HS2.
