Changes to the management of the UK's road network have moved a step closer after reforms to the Highways Agency were given approval.

The agency is to be transformed into a government-owned company with the responsibility of overseeing England's motorway and strategic A-road network.

According to the government, the reforms will save the taxpayer at least £2.6 billion over the next ten years. 

The company will be supported by a stable funding mechanism that will eliminate the uncertainty attached to the 'stop-start' processes of the past. This will enable the organisation to recruit skilled workers on longer-term contracts, saving the taxpayer money.

Alasdair Reisner, chief executive of the Civil Engineering Contractors Association, said: "These reforms will not only make the Highways Agency more efficient, but will also mean greater funding certainty for the construction sector."

The government has pledged £24 billion to upgrade England's strategic road network between 2010 and 2021.