Hansard

The A9 is a vital element of our national infrastructure that connects the communities of the Highlands and Islands with central Scotland and supports their economic and social wellbeing. Dualling the A9 between Perth and Inverness will improve the safety, reliability and resilience of the route, and this Government has been consistent in its commitment to completing that vital work.

In support of that commitment, in December 2023, the Government announced its delivery plan for the completion of the A9 dualling programme by the end of 2035. That plan involved the procurement of four design and build contracts and, subject to further decision making in late 2025, the procurement of two mutual investment model contracts.

As the Government indicated yesterday in the budget and spending review statement, the programme will be delivered using capital-funded contracts instead of mutual investment model contracts, and it will still achieve dualling of the A9 between Perth and Inverness by 2035.

I am pleased to provide an update for the Parliament on the A9 dualling programme and further detail on the decision making and on how that decision affects our delivery plan for the completion of this vital programme of work.

The 2023 delivery plan set target dates for progress of the dualling programme. So far, the Government has met all those targets dates, and construction is under way on the third and fourth sections of the programme—Tomatin to Moy and Tay crossing to Ballinluig—which, together, will provide approximately 11 miles of dualling. Procurement of the fifth section, Pitlochry to Killiecrankie, commenced in July this year, and we are on track to award that contract in autumn 2026. That will bring another four miles of the programme into construction. The Government has also made significant progress with statutory processes. Since December 2023, we have published draft orders for one project, made orders for a further three projects and completed land acquisition for six projects.

The 2023 delivery plan anticipated the use of two mutual investment model contracts to achieve completion of the dualling programme. The Government indicated at the time that that would be subject to further decision making in late 2025, to take account of updated assessments of expected market conditions. Extensive work to inform that decision making was undertaken throughout 2025. Our updated business case confirmed that the rationale for completing the dualling programme remains strong and that it is considered to provide value for money. Our market consultation indicated a strong appetite among European contractors for involvement in the delivery of MIM contracts and an appetite among domestic contractors for involvement in the delivery of capital-funded contracts.

Our updated financial modelling indicates that the cost of MIM contracts is now around 28 per cent higher than the cost of equivalent capital-funded contracts—an increase from the 16 per cent difference estimated in 2023. The increased difference is primarily linked to the fact that the expected costs of borrowing for each MIM contract are now around 2 per cent higher per annum, which reflects macroeconomic factors impacting on borrowing costs.

It was concluded that using MIM contracts for the A9 dualling programme would provide poorer commercial value for money than would be provided by capital-funded contracts. Therefore, the Government will progress the A9 dualling programme to completion using capital-funded contracts. That important decision demonstrates the strength of the Government’s commitment to meeting its target of completing the A9 dualling programme by the end of 2035.

The decision not to use MIM contracts has implications for how completion of the A9 dualling programme by 2035 will be achieved. The 2026 delivery plan continues to balance factors including industry’s capacity to deliver and the need to minimise disruption to road users. It also takes into account the likely need for a public local inquiry for the Pass of Birnam to Tay crossing project. It brings forward the start of works for the Dalraddy to Slochd section in the north, providing earlier completion of the new grade-separated junctions that serve Aviemore and Carrbridge. It facilitates the earlier completion of a section of dualling that includes the new grade-separated junction at Dalnaspidal as part of a combined Glen Garry to Crubenmore contract, rather than as a stand-alone advance works contract.

The 2026 delivery plan is based on establishing a framework agreement that will streamline the procurement process and provide a pipeline of work, as the market has requested. We will continue to engage with the construction industry on the A9 dualling programme, including with the Civil Engineering Contractors Association, which has welcomed the use of capital-funded contracts.

Next week, in support of that aim, Transport Scotland will launch a further market consultation with interested parties on the design of the framework agreement. That consultation will inform procurement of the framework agreement, which is planned to commence in spring this year, with appointments being confirmed by the end of the year.

Once it is in place, the framework will be used to procure five contracts for completion of the six projects that are yet to commence procurement. Full details of the target dates for each contract to be procured are set out in the 2026 delivery plan, which has been published today on both Transport Scotland’s website and the dedicated A9 dualling website.

The 2026 delivery plan maintains the target of having dualling operational between Perth and Inverness by the end of 2035. With continuous construction activity taking place across the corridor, dualling will continue to be brought into operation on a phased basis, with 50 per cent of the route between Perth and Inverness operating as dual carriageway by the end of 2030; 67 per cent by the end of 2032; 91 per cent by the end of 2034; and 100 per cent by the end of 2035.

Today’s confirmation of the procurement and funding route for the remaining sections of the A9 dualling programme provides further reassurance for communities and businesses throughout the corridor on the timelines for construction of those projects.

I can also confirm that the updated cost estimate for the programme is now £3.97 billion at April 2025 prices. When adjusted for inflation, that is equivalent to £2.5 billion at April 2008 prices, which remains well within the original cost estimate of £3 billion at 2008 prices. This Government remains committed to providing the necessary funding in support of the estimated costs in order to deliver the dualling programme on track in 2035.

I will briefly cover three related matters. First, the Government has been progressing work to secure planning consent for the proposed active travel route between Aviemore and Carrbridge. Subject to obtaining the planning consent and completing land acquisition, those works will be included within the now earlier Dalraddy to Slochd section.

Secondly, Transport Scotland will continue to investigate the potential introduction of temporary traffic signals at the A923 Dunkeld junction and an associated reduced speed limit. Assuming that those proposals are confirmed, our target is to deliver those improvements during the 2026-27 financial year.

Thirdly, we will continue to prioritise road safety along the corridor. In 2025, we completed a £5.2 million package of short-term measures. We continue to work in partnership with Police Scotland and our wider road safety partners to respond, where appropriate, to any safety concerns on the route through our established processes, including the A9 safety group.

The 2023 delivery plan provided certainty on the target dates for key early milestones, as well as allowing for a further decision-making process to be completed in late 2025. That decision-making process has led to the 2026 delivery plan that I am announcing today, which provides further detail and certainty on the target dates for key milestones for the remainder of the dualling programme.

The Government is fully aware that much work remains to be done to deliver this vital major infrastructure programme, and we are relying on the contracting industry to work collaboratively with us to achieve that outcome. The Government has made it clear that completion of the A9 dualling programme by the end of 2035 is an absolute priority, and we have now set out clearly how we intend to achieve that goal.

I hope that today’s update further reassures the communities that are served by the A9 that there is a clear, robust plan for dualling the A9 between Perth and Inverness by the end of 2035. The visible work that we can all see on the route will continue to ramp up, and I want to take the opportunity to thank all road users for their patience while we undertake this vital work to upgrade Scotland’s arterial route, which will support the Highlands and benefit all of Scotland.