Budget: Work on £5bn M25 widening to start next month

Work on the £5bn M25 road-widening scheme is set to start next month, as the Highways Agency reaches the final stages of negotiations to sign the deal, according to the government's Budget report.

Meanwhile preferred bidder ConnectPlus has told the government that it has approval from a board of lenders - thought to include more than 20 banks - for more money than required. The news means the scheme will not need help from the government's £2bn PFI rescue unit.

Balfour Beatty and Skanska are to undertake the £1.2bn road-widening works.

The Budget report also confirmed the PFI rescue fund lent £120m to ensure that the £3.8bn Greater Manchester Waste deal involving Viridor and John Laing was signed off.