Construction output in the roads sector is expected to rise 10% this year, driven by growth in Highways Agency capital funding, and increase by 46% over the next four years.

Figures released on Monday by the Construction Products Association also show that rail output is forecast to rise 8% both this year and next, although growth in rail is expected to slow from 2016 due to uncertainty with funding.

The Association's economics director Dr Noble Francis said that the forecasts reflect a welcome, recurring theme as growth continues and begins to broaden.

But he added: “Recovery is not a foregone conclusion. Several important risks remain, primarily around the strength of the UK and Eurozone economies, the policy outcomes following the 2015 General Election and the impact of any supply constraints such as the scarcity of labour and materials.”

Civil Engineering Contractors' Association chief executive Alasdair Reisner said: “The industry is working on the basis that these predicted output levels for roads will be delivered and is gearing up to meet the demand.

“However whether or not the forecasts can be met relates primarily to the passing of the Infrastructure Bill, which would formalise a strategic roads funding programme in law. This brings with it some political risk due to uncertainty created by next year’s General Election.

“Our view is that proper investment in infrastructure could give a 5% boost to GDP, equivalent to £78Bn extra in the economy,” added Mr Reisner.

♦ Today (Wednesday) the RAC Foundation said that road users now pay four times more money to the Chancellor in motoring taxation than is spent by Government on the roads. It said that £30.7Bn was raised from direct motoring taxation in 2012, but only £7.5Bn was spent on roads (£3Bn on national roads and £4.5Bn on local roads).

Professor Stephen Glaister, director of the RAC Foundation, said: "Over the past five years the gap between the Chancellor's income from motoring tax and what he spends on roads has widened sharply.

"At the same time the pothole backlog has been growing and local authorities are warning that spending commitments on social care and environmental services means there will be even less money available to maintain our highways in the future."

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