Islington Council has approved a £75 million contract for traffic, highways, and lighting maintenance services, aiming to enhance asset performance, operational efficiency, and reduce costs.
The Executive committee agreed on Thursday 22 October 2026 to award the contract, which will span an initial seven years with an option to extend for a further three, to manage and maintain the borough's roads and streetlights. The contract, estimated to be worth up to £75 million over its maximum ten-year term, will be divided into two lots: Traffic and Highways, and Lighting.
Councillor Rowena Champion, Executive Member for Climate, Environment and Transport, presented the procurement strategy. The new contract will encompass a wide range of works and services, including the maintenance and renewal of all public highway elements, traffic engineering measures, highway drainage systems, capital renewal programmes, emergency response, structures and bridge works, road markings, civil engineering schemes, tree cutting, pipe subway minor maintenance, and the installation of street furniture. For lighting, it will cover maintenance and renewal of public lighting assets, asset data management, electrical connections, capital renewal programmes, emergency response, routine repairs, and the operation and maintenance of the Central Management System.
Key objectives for the new service include improved asset performance, operational efficiency, cost reduction, and the implementation of new technologies. The expected benefits from these technological integrations are manifold, promising improved asset performance, greater operational efficiency, cost reductions, revenue generation, enhanced customer satisfaction, reduced carbon emissions, and improved safety and accessibility for all road users.
The existing Term Maintenance Contract for traffic and highways is set to expire in July 2028, coinciding with the end of the current Lighting PFI Agreement. The new contract will ensure the continued delivery of these essential services without interruption.
The strategy was approved following a competitive tender process. While the contract has not yet been awarded, the council will retain some minor highway maintenance works to be delivered by its in-house team. This includes minor reactive highway maintenance such as carriageway and footway repairs, pothole repairs, small patching, and replacing broken gully grates. The in-house team will also manage guardrail maintenance, small plant maintenance, minor signage works, the highway call-out service, bollard maintenance, make-safe works following road traffic collisions, Public Rights of Way, pipe subway works, parking signage, cycle-stand installations, dangerous structure make-safes, installation of street furniture, green space maintenance on the public highway, minor foliage encroachment management, support for winter maintenance and other weather events, and traffic signs and guarding for events. The rationale for retaining these works in-house is to preserve the capacity of the existing team, allow for a greater range of work to be delivered directly, reduce the council's exposure to increasing construction costs and market volatility, and strengthen in-house delivery and capacity for greater efficiency.
Furthermore, the contract will incorporate significant social value commitments as a core requirement. These will be specific, measurable, and time-bound obligations, with a social value delivery plan agreed during mobilisation. Performance will be monitored and reported regularly, with corrective actions and contractual remedies applied if commitments are not met. Social value performance will also influence decisions on contract extensions. Specific commitments include apprenticeship opportunities for local residents and support for care-experienced young people and other priority groups, collaboration with the Council's iWork service for local recruitment, encouraging local SME and micro-business spend, and supporting local sub-contractors. Fair employment practices such as payment of the London Living Wage, prohibition of zero-hours contracts, clear terms and conditions, access to trade unions, and training opportunities are also included. Environmental benefits are also a focus, with commitments to net-zero carbon targets, using electric vehicles, minimising journeys, sourcing sustainable materials, and potentially achieving ISO14001 certification.
The procurement strategy aims to achieve cost reduction through improved operational efficiency and economies of scale, with the report mentioning that the contract will deliver economies of scale in both procurement and operation
and that better value for money
is expected. However, specific projected cost reduction figures or a detailed breakdown of how these savings will be achieved are not provided.
The contract will also address environmental considerations by requiring bidders to demonstrate their commitment to the Council's net-zero carbon targets and environmental protection. Specific initiatives include using electric vehicles, minimising journeys, sourcing sustainable materials, protecting wildlife, implementing robust waste management policies, and encouraging energy and water saving measures. The contract will support climate adaptation, reduced emissions, and improved air quality through highway drainage, rain gardens, planting, low-carbon materials, and efficient plant and vehicles.
This new contract ensures the continued delivery of essential services while embedding social value and environmental responsibility into its core operations. Further details on the procurement strategy can be found in the Public reports pack for the Executive meeting on 22 October 2026.