Cost of roadworks in Hampshire rising due to shortage of materials
Hampshire County Council says the cost of highways work is surging due to the cost of raw materials
Last updated 13th Dec 2021
A shortage of raw materials has made roadworks in Hampshire ‘significantly’ more expensive.
Hampshire County Council’s cabinet met in Winchester, where it was reported that highways work was seeing inflation rates of 17 per cent – more than triple the national rate of inflation. It comes as there's a shortage of raw materials which has made roadworks ‘significantly’ more expensive.
The report claimed highways and construction workers are seeing ‘significant supply chain challenges’ as a result of the Covid-19 pandemic, Brexit and global transport issues.
Councillor Russell Oppenheimer, executive member for highways operations, said: ‘The thing that has gone up most is the price of concrete – that’s linked to the infrastructure boom that we’re having globally, everyone wants to build things at the moment.
‘As the cost of oil goes up, we have also seen an increase in plastic prices. We use the plastics in paint so that has an impact too.
‘The main issue with this huge increase is that it’s higher than the national rate of inflation, which is around five per cent. This inflationary pressure is a challenge for highways – the cabinet had previously decided on spending an extra £7m per year, but inflation has gobbled that up.’
Councillor Oppenheimer added that additional money may yet be needed to fund transport projects, despite the council needing to save £80m.
Fellow cabinet member Councillor Stephen Reid, executive member for performance, HR and partnerships, suggested that the council will have to prove it is somewhat self-sufficient to win bids from the government.
He said: ‘In the future, I foresee the need to show the government that we are helping ourselves as much as we can.
‘Recycling road materials will become crucial if we are to show that the funding we request is based on a genuine need.’
Freedom of Information Act requests from Moneybarn showed that the county council carried out 53,847 roadworks in the past two years.
The county council reported that tender prices have also increased by more than six per cent a year.
Council officers hope that more ‘innovative, value-engineered solutions’ can be found at a reduced cost, with plans to work more closely with contractors and stakeholders when it comes to future projects.'