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Under new measures, local highway authorities that fail to demonstrate that their highways cash is being used to maintain roads effectively could lose around a third of their funding for the next year.
Councils must publish reports proving they are spending all of their highways cash on road maintenance. They must also show long-term plans for looking after roads and invest in training for highways teams.
Roads and buses minister, Simon Lightwood, said the government wanted to make sure that money went straight into fixing roads and tackling potholes rather than being spent elsewhere, with a total of £525m or the total £1.6bn fund potentially held back from councils across England.
“We’ve made it crystal clear that councils that fail to maintain their roads will now risk losing up to a third of their funding," said Lightwood. "And for the first time, we’re giving councils multi-year funding so they can plan properly and reverse a decade of decline in our roads."
Pothole damage costs the average driver around £500 in avoidable repairs. According to the RAC, pothole compensation claims submitted to 177 local authorities have jumped by 91% in just three years – from 27,731 in 2021 to 53,015 in 2024.
RAC head of policy, Simon Williams, said: “Ensuring money that is given to councils to improve their roads is actually spent on roads is critical, so the government’s focus on this will be welcomed by drivers. And, while fixing dangerous potholes is vital, it’s also very positive to see councils being encouraged to carry out preventative maintenance work, which will stop potholes forming in the future.”
In January, the government started to issue red, amber or green ratings to grade 154 local highway authorities based on current road condition and how effectively they are spending their highways funding. It now publishes a map showing the public how well councils are doing in delivering the improvements.
The 13 red-rated local highway authorities are receiving extra support over the next two years to help them raise standards and fix more roads.
A report from the Asphalt Industry Alliance, published in January, found that local authorities face a record £18.62bn backlog of repairs which would take 12 years to sort despite a rise in government funding to tackle the pothole problem.
