NO2 PROGRAMME

Rating: Compared to financial year 24/25 Q4, the NISTA Delivery Confidence Assessment rating at 25/26 Q4 increased from RED to AMBER. This is primarily due to all the recommendations from the NISTA Gate 5 review having been addressed and evidenced and the programme being ready for transition to business as usual and coming off GMPP at the end of 25/26. Six were agreed as closed and the remaining two will be closed as part of final programme closure and transition activities. NISTA confirmed that the Programme was removed from the GMPP on 31 March.

Schedule: Compared to financial year 24/25-Q4, the programme's end-date at 25/26-Q4 was revised to 31/03/26. This is primarily due to funding constraints, lack of new measures, progress to date and wider improvements in vehicle fleet. Defra’s Investment Committee agreed in April 2025 to ‘careful closure’ of the programme, acknowledging the programme successes.

Cost: Compared to financial year 24/25-Q4, the programme’s departmentally agreed Whole Life Cost at 25/26-Q4 (measured in £m) decreased to 678. This was due to less funding being secured through the Spending Review and business planning rounds because the additional measures identified to date were unlikely to bring forward compliance with legal air quality limits. The reduced programme budget based on the SR25 settlement was £706m (£441m CDEL and £265m RDEL) over the SR period (up to FY29/30). The actual expenditure of the programme at the end of financial year 25/26 when it exited the GMPP is £678 million. This excludes the cost of measures to be agreed for Stoke’s Clean Air Plan. NO2 work which is carrying on through business-as-usual teams in Defra and DfT from FY26/27 onwards has budget allocation in line with 2025 Business Planning in both departments. This will not be reported in GMPP.

Source: NISTA Major Projects Annual Report 2025-26 (data)

Rating: Compared to financial year 23/24-Q4, the Infrastructure Project Authority's Delivery Confidence Assessment rating at 24/25-Q4 decreased from AMBER to RED. This is primarily due to uncertainty surrounding future zero emission bus funding, as well as challenges in identifying additional measures within local authorities that are not currently on track to achieve compliance with NO2 limit levels in the timeframe expected.

Schedule: Compared to financial year 23/24-Q4, the project's end-date at 24/25-Q4 remained at 31/12/2027. This is primarily due to the NO2 programme being legally mandated to deliver compliance with NO2 limit levels in the shortest time possible. The programme team works closely with local authorities who have exceedances across England to develop and implement NO2 reduction plans.

Cost: Compared to financial year 23/24-Q4, the project's departmentally agreed Whole Life Cost at 24/25-Q4 (measured in £m) remained at 883. This is primarily due to the following factor‚ - the Whole Life Cost is subject to outcomes from the Spending Review and has remained at £883m until this is concluded.

Source: NISTA Annual Report 2024-25 (data)

Rating: Compared to financial year 22/23-Q4, the Delivery Confidence Assessment rating at 23/24-Q4 remained at Amber(SRO rating). This is primarily due to the following factors. Good progress has made against all previous IPA recommendations. The most recent IPA review of the programme was in March 2023 and actions against each recommendation from this review are being taken forward. The next IPA review will take place in April 2024. Overall the NO2 Programme continues to deliver mitigations alongside Local Authorities and remains at Amber.

Schedule: Compared to financial year 22/23-Q4, the project's end-date at 23/24-Q4 remained schedule to finish on 2027-12-31. This is primarily due to the following factors. The NO2 programme is legally mandated to deliver compliance with NO2 legal limits in the shortest time possible. The programme team works with local authorities across England who have exceedances to develop and implement local NO2 reduction plans through a variety of interventions. Seven Clean Air Zones have been launched as part of the programme to help reduce NO2 levels. In February 2022, Ministers granted permission for Greater Manchester to pause implementation of their Clean Air Zone and revised plans were submitted to Government in December 2023. The programme team will respond to Greater Manchester in due course. Comprehensive monitoring and evaluation arrangements are in place to assess whether local authorities are on track to reduce NO2 levels in the timeframe expected and consider appropriate remedial action if they are not. The programme team also continues to work closely with National Highways to address NO2 exceedances on the Strategic Road Network.

Cost: Compared to financial year 22/23-Q4, the project's departmental-agree Whole Life Cost at 23/24-Q4 remained at 883m. This is primarily due to the following factors. The projects Baseline Whole Life Cost remains at 883.00 (m).

Source: IPA Annual Report 2023-24 (data)