Transport secretary Patrick McLoughlin has rubber stamped major changes to the Highways Agency.
The organisation will be transformed into a government-owned company tasked with managing and operating England’s motorway and strategic A-road network.
The move is aimed at saving the taxpayer at least £2.6bn over the next decade and making the body more accountable to Parliament.
McLoughlin said: “Our road network is an incredibly important national asset, but it has been neglected.
“This government has committed to the biggest ever investment in our roads but it is vital we have the right foundations in place to make sure this huge amount of money is spent in the most efficient way.”
The Department for Transport will now work to introduce the legislation needed to underpin these changes. It plans to bring the new company into operation in April 2015.
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