City of York Council has agreed to phase the delivery of its Outer Ring Road project as the anticipated cost has jumped by almost £100M.

The plan, drawn up by Pell Frischmann, is for upgrades along the York Outer Ring Road (YORR) from the A19 Shipton Road to the A1036 Little Hopgrove roundabout and would see improvements to six sections of the northern York Outer Ring Road, including 5 roundabouts at Clifton Moor, Haxby Road, Monks Cross, Strensall Road and Wigginton Road.

As part of the plans, the existing single-carriageway road will be widened to dual-carriageway roads in both directions to reduce congestion.

The upgrade of the road and the roundabouts aims to reduce congestion and journey times, encouraging traffic out of the city centre and onto larger roads where flows can be managed effectively.

York Outer Ring Road scheme overview

This month, council’s Executive considered a comprehensive update on the YORR project, outlining current progress, funding status and the proposed phased delivery approach aimed at unlocking housing development and enhancing regional connectivity. The report underscored the scheme’s critical role in meeting the city’s local plan infrastructure needs, supporting economic growth and advancing environmental objectives.

The YORR project, central to the Council Plan 2023-2027, is designed to deliver significant transport improvements by upgrading junctions and expanding active travel routes, thereby easing local congestion and providing better access to employment opportunities.

A CGI image of an example roundabout for the scheme

The phased delivery strategy ensures investments prioritise areas with the greatest need, particularly those unlocking new housing in line with the recently adopted Local Plan, which anticipates 3,557 new homes. Active travel infrastructure included in the scheme supports York’s Climate Change Strategy by encouraging walking and cycling, thus contributing to a target of reducing carbon emissions from transport by 71% by 2032.

However, the ambitious project faces substantial financial challenges. Initial budget estimates of £67.4M have ballooned to approximately £164M due to rising construction costs, inflation, regulatory requirements and additional technical demands.

Key cost drivers identified include a 35% inflation impact (£23.6M), requirements following the government’s LTN1/20 guidance which expanded cycling and pedestrian infrastructure (£8.7M), environmental and archaeological considerations, technical roundabout evaluations (£44.4M) and utility (£7.4M) and landscape works (£2.75M).

The original £67.4M funding was made up of £4.3M from the council, £25.1M from the Department for Transport and £38M from West Yorkshire Combined Authority.

The council has proposed to make up the funding gap through a combination of existing budgets, grant funding from bodies such as the York & North Yorkshire Mayoral Combined Authority (YNYCA), borrowing and developer contributions.

To manage financial risks, the council has agreed to delivering YORR in four phases, beginning with the Clifton Moor roundabout – an essential junction for unlocking housing development. The phased approach aligns expenditure with available budgets while maintaining delivery momentum. The council plans to utilise grant funding before committing to borrowing where possible, aiming for greater cost efficiency.

The Executive has also approved key recommendations, including renegotiating existing grant agreements, procuring contractors and specialist services for timely delivery and applying for additional funding bids. Delegated authority is proposed for the Director of City Development, in consultation with governance and finance directors, to manage contracts and funding arrangements within approved budgets.

Notably, the project also emphasises lessons learned and proposes a formal review process post-completion of Phase 1 to refine future delivery and risk management. It is believed that the phased approach will support York’s broader vision for a healthier, more accessible and sustainable city while unlocking critical housing and infrastructure pivotal to meeting growing demand.

The Executive’s agreement will thus facilitate the completion of a major transport and regeneration project, aligning economic growth and environmental sustainability while carefully managing financial exposure amid a challenging economic climate for construction and development.

City of York Council executive member for transport Kate Ravilious said: “Improving York’s Outer Ring Road will bring many benefits including enabling the construction of new homes, increasing sustainable travel links and providing opportunities to reduce traffic congestion in the city centre.

“We remain committed to delivering improvements to York’s Outer Ring Road. Last week the council’s executive approved proposals brought forward to deliver the project in four phases, ensuring progress can be made with existing funding available.

“This approach will give priority to those sections of the route where highways improvements are needed to enable delivery of new homes outlined in York’s Local Plan, starting at Clifton Moor, and for the sustainable travel links needed to support those developments.”

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