The National Audit Office’s (NAO) 2026 transport innovation report raises important questions for businesses, investors and policymakers about how effectively the UK Government is supporting new technology and decarbonisation in transport.
The NAO review of innovation in transport examines whether the Department for Transport (DfT) is getting value for money from its £1.1 billion innovation programme running from 2022-23 to 2029-30.[1] Below, Brevia’s Transport and Infrastructure team have summarised this important development and its relevance for businesses operating in the transport technology, infrastructure or mobility sectors. Brevia’s team is here to help. Read our analysis below and speak to us about how we can support your public affairs strategy.
HS2 and the Wider Challenge of Transport Innovation in the UK
This report is especially prescient this week, with the Transport Secretary’s announcement on HS2 on 19 May 2026. The Rt Hon Heidi Alexander MP described how the process had become a ‘massively overspec-ed [sic] folly’, and that errors ‘will be rectified’.[2] With HS2 being a proposed flagship project, but more often a painful reminder for successive Governments of the difficulties to erect new infrastructure, close attention should be paid to how the Government intends to complete the project.
DfT Transport Innovation Spending: Ambition Without Sufficient Oversight
The NAO concludes that the DfT has made genuine progress in focusing on innovation, including successfully identifying and addressing barriers to innovation. The NAO notes that 72 per cent of their projected funding relates to decarbonisation programmes, including continued DfT support for the uptake of sustainable aviation fuel.
The report does, however, argue that despite the improvement in focus, its approach to prioritisation remains insufficient, and the DfT is not leveraging its regulatory and commercial influence. Critically, DfT must ‘improve the coordination of [their] innovation activity with its arm’s-length bodies and key stakeholders’.[3] The report notes that the DfT has limited strategic oversight of its innovation activity, leading to potential missed opportunities for coordination across different modes of transport. In comparison, DfT’s three highest-spending arm’s-length bodies, Network Rail, National Highways and HS2 Ltd, have clearer processes for prioritising and managing their respective portfolios.[4]
The report notes that transport industry representatives have also identified several obstacles that are preventing DfT from more effectively supporting innovation. These include:
- A risk-averse culture
- Contractual and procurement processes that work against experimentation and place disproportionate burdens on smaller companies
- Concerns about intellectual property rights
- The need for better support to move trials to commercial end products.[5]
The DfT has ‘taken steps to address these’,[6] but the report clearly believes more work is needed to embed a broader culture of innovation across the department.
How Brevia Can Help
At Brevia, we work at the intersection of policy, politics and public affairs. We help businesses in the transport and technology sectors build the government relationships that matter, shape their public affairs strategy, and ensure they are heard by the right people at the right time.
The NAO has identified the opportunities. We can help you access them.
Discover how Brevia can help you and your organisation by contacting the Brevia Team on 020 7091 1650 or contact@brevia.co.uk
BREVIA CONSLTING PROVIDES STRAIGHTFORWARD POLITICAL ADVICE AND SUPPORT TO BUSINESSES AND ORGANISATIONS
[1] NAO, Innovation in Transport, 18 May 2026, https://www.nao.org.uk/reports/innovation-in-transport/
[2] BBC News, HS2 could cost up to £102.7bn and may not open until 2039, transport secretary says, 19 May 2026, link
[3] ibid
[4] Network Rail, National Highways and HS2 Ltd have a combined annual spend of around £81 million on research and development according to the report.
[5] NAO, Innovation in Transport, 18 May 2026, https://www.nao.org.uk/reports/innovation-in-transport/
[6] ibid
