Colas highways contract worth £587m set to end in Portsmouth in 2030
Roads, pavements and street lighting could be managed differently after Colas’s contract ends.
Portsmouth’s roads, pavements and street lights could be managed differently from 2030 as the council prepares to take back control of highways services.
Portsmouth City Council is preparing to take back control of highways services when its long-running private finance contract ends in March 2030.
The council’s cabinet outlined plans for the transition, including how roads, pavements, street lighting and drainage will be maintained in the future.
The £587m contract, signed in 2004 with Ensign Highways Limited, covers a range of services delivered by subcontractor Colas, from resurfacing roads and spreading grit in winter to emptying litter bins and street cleaning.
The report says the council has entered the final 42 months of the agreement and is checking that infrastructure meets contractual standards before it is handed back.
Specialist technical audits are being carried out on assets, including carriageways, footways and structures, to help protect the council from future costs.
A joint transition working group involving the council, Ensign and Colas was established in November 2025 to plan the handover and maintain services without disruption.
Options for how highways services will operate after 2030 are now being developed, with a full report on costs, risks and potential arrangements due before cabinet in spring 2027.
The council is also considering opportunities to work with neighbouring authorities, while local government reorganisation remains on hold pending a Government review, which would merge councils in Portsmouth, Gosport. Fareham and Havant.
The council says the future model must deliver value for money, maintain public safety and meet residents’ expectations for services.
The council has received a top “Green” rating in the Department for Transport’s 2026 Private Finance Initiative expiry health check.
Councillor Peter Candlish, cabinet member for transport, said the council was “looking ahead and planning for the end of the PFI”, describing it as “long term proactive thinking about our assets in the way we manage our services”.
He added that councillors “should be pleased with the position we find ourselves in”.
A phased £3.8m budget investment has been approved to support the expiry programme and develop future arrangements.