A38 Derby Junctions faces cancellation as Government reallocates road funding to defence
The Department for Transport has confirmed it will consult on reductions to the third Road Investment Strategy, including the potential cancellation of the A38 Derby Junctions and A46 Newark Bypass schemes, as part of a wider funding reallocation to support the Defence Investment Plan.
In its funding explainer published 30 June 2026, the Government states: "DfT will provide savings of up to £700m from its roads funding. The Department will consult on reductions to the third Road Investment Strategy (RIS3) - including the potential cancellation of the A38 Derby Junctions and A46 Newark Bypass schemes, both of which are yet to enter contract and not as far along as other road schemes. There will be stakeholder consultations before any final decision is taken."
The Stop the A38 Expansion campaign group welcomes the news that the Government may remove investment from the A38 Derby Junctions, though still urges the Government to invest in sustainable transport in Derby and the East Midlands.
Clare Wood, Mickleover resident from the Stop the A38 Expansion Campaign, said:
"The harms of this scheme - the felling of nearly 12ha of mature trees, increased air pollution, increased carbon emissions and over 4 years of construction disruption and worsening congestion on local roads - were justified by the authorities because of the claimed economic benefits.
The scheme's economic case has collapsed as the costs tripled to over £600m and the benefit:cost ratio collapsed to 1.11 and may now be so low now that the scheme costs more than any benefits it offers.
It is right that this wasteful, outdated road scheme is halted as all it would do is inflict harm on local residents' health and the environment with no justifiable benefits."
The Government has confirmed there will be stakeholder consultations before any final decision is taken. The campaign group says it will continue to engage with this process and press for the scheme's full and permanent cancellation, alongside renewed investment in public transport and active travel for Derby and the East Midlands.
Sources: HM Treasury / Ministry of Defence, The Defence Investment Plan Funding explainer, published 30 June 2026: https://www.gov.uk/government/publications/the-defence-investment-plan/the-defence-investment-plan-funding-explainer
The benefit-cost ratio figures are drawn from planning examination documents and an internal National Highways spreadsheet disclosed via FOI (October 2024). https://www.whatdotheyknow.com/request/information_supplied_on_a38_derb/response/3149484/attach/html/3/SR%20Phase%202%20Template%20NH%20REDACTED.xlsx.html
Cost increase of A38 scheme on Page 77 of ORR National Highways financial monitoring data, July 2025. https://www.orr.gov.uk/sites/default/files/2025-08/annual-assessment-of-national-highways-performance-2024-2025-web.pdf
National Highways engages on £600M, 10-year contract for A38 Derby Junctions scheme, New Civil Engineer, 20 Feb 2026. https://www.newcivilengineer.com/latest/national-highways-engages-on-600m-10-year-contract-for-a38-derby-junctions-scheme-20-02-2026/
