Doubt has been cast over the delivery of the improvement scheme in Nottinghamshire after the cancellation of a construction contract.
At the end of April, officials said they had hoped work on the long-awaited improvements to the regularly congested A46 bypass in Newark could begin within the next five years.
In October 2025, the Government approved the Development Consent Order (DCO) for the scheme, meaning planning permission had been secured for the contractor to move forward with the construction works.
The road is regarded as a crucial trade corridor through the East Midlands and connects the M1 and Leicester to the A1 and central Lincolnshire.
While no official date had been given for the start of works to improve the bypass, a Government document published just weeks ago said it will be completed in its next roads investment period, which runs from 2026 to 2031.
Swedish construction and development company Skanska had been working with National Highways on the project through its development stage.
National Highways announced it had selected the company to design and build the new bypass back in 2022.
However, in a statement published on Monday (29 June), the firm said: “Skanska has received a cancellation of the contract from National Highways to deliver the upgrade of a 6.6-kilometre stretch of the A46 Newark bypass in the Midlands region, UK.
“The cancellation, worth GBP 297M, about SEK 3.7 billion, will reduce the European order bookings in the second quarter of 2026.”
A National Highways spokesperson said: “We thank Skanska for their valuable contribution in progressing the project and continue to work with them on other schemes currently under construction.”
It is understood the next step for National Highways is to procure the main construction works, and there has been no mention of the scheme being shelved.
National Highways has been proposing to improve congestion on the A46 Newark Bypass by widening 6.5 km of the single carriageway.
Under the plans, it would become a dual carriageway, providing two lanes in each direction between the Farndon and Winthorpe roundabouts near Newark-on-Trent.
A new flyover would be built at the Cattle Market roundabout for the A46 to pass over the junction, while a new bridge would also be constructed over the A1.
It is considered one of nine “nationally significant” projects in the county.
Cllr Jack Kellas, the leader of the Conservative Group and of the council’s opposition, said: “It is concerning to hear that National Highways has cancelled its contract with Skanska for Newark’s A46 dualling.
“Local Conservatives have driven this project for years and have consistently fought to improve the lives of local people through this most important scheme, despite the out-of-touch opposition presented by local Labour and independent campaigners.”
Councillor Paul Peacock, leader of Newark and Sherwood District Council, said: “It’s still an emerging picture, and we’ll work with partners accordingly on the basis that the project remains within the National Road Investment Strategy to commence within the period 2026–2031.”
On 27 April, a new link road connecting the A46 to the A1 opened amid the continued development of more than 3,000 homes on the Middlebeck estate.
By Joe Locker, Local Democracy Reporter
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