Councils across England will face stricter rules on how they spend funding to repair potholes and maintain local roads, as the Government introduces new measures aimed at delivering visible improvements for taxpayers.
Announced on 14 April, the changes mean local highway authorities that fail to demonstrate effective road maintenance could lose around a third of their share of the £1.6 billion funding allocation next year. The move is designed to ensure that public money is spent directly on improving road conditions rather than being diverted elsewhere.
Pothole-related damage currently costs the average driver around £500 in avoidable repairs, placing additional strain on household budgets. The Government says the new requirements will help ease that burden by ensuring councils take a more accountable and proactive approach to road maintenance.
Under the updated rules, £525 million of funding will be withheld from councils across England unless they can prove transparency and performance. Local authorities will be required to publish detailed reports showing that highways funding is being used solely for road maintenance. They must also outline long-term strategies for maintaining roads and demonstrate improved training for highways teams.
The aim is to give taxpayers greater visibility over how funds are used while accelerating progress towards smoother, safer roads and tackling what has been widely described as a growing pothole crisis.
Roads and Buses Minister Simon Lightwood said, “Drivers deserve smooth, safe journeys, and we’re making sure every pound goes straight into fixing roads and tackling potholes, not being spent elsewhere.
“Potholes aren’t just an inconvenience – they cost drivers hundreds, if not more every time they cause damage to a vehicle. Fixing our roads is one of the most impactful things we can do to reduce the cost of owning and driving a car, and we’re making sure every pound goes straight into doing exactly that.
“We’ve made it crystal clear, that councils which fail to maintain their roads will now risk losing up to a third of their funding.
“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.”
Industry figures have broadly welcomed the announcement, particularly the focus on accountability and long-term planning. Simon Williams, head of policy at the RAC, said, “These measures should go a long way to addressing the poor condition of local roads which we know from research for the RAC Report on Motoring is drivers’ number-one concern.
“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.
“Having the certainty of funding over the next five years for councils to plan proper maintenance programmes should result in better quality roads for all.”
Edmund King, president of the AA, added, “Fixing potholes remains the number one motoring issue for drivers, so it is right that councils are being scrutinised over their repair plans.
“We urge local authorities to use their funding to resurface roads rather than simply patch-up their streets. Proper investment in the road network helps create safer, smoother journeys for everyone.”
David Giles, Chair of the Asphalt Industry Alliance (AIA), also supported the focus on transparency but warned that significant challenges remain. He said, “Local authority highway engineers need sustained investment in highway maintenance, supported by a long-term funding horizon and greater transparency. This would allow them to carry out the most appropriate maintenance intervention at the right time.
“That’s why we welcomed the Government’s commitment to increase funding to 2030, and we support its new measures to ensure it is spent on our local roads and not diverted elsewhere.
“However, with this year’s Annual Local Authority Road Maintenance (ALARM) survey report highlighting that the backlog of repairs now stands at £18.62bn, it is not the silver bullet that will allow local highway engineers to fully deliver the necessary resurfacing and proactive programmes that will prevent potholes forming in the first place.”
The reforms build on the Government’s introduction of a red, amber and green rating system for 154 local highway authorities, assessing both road conditions and how effectively funding is used. A public-facing map will allow residents to see how their local council is performing.
In addition, thirteen authorities rated ‘red’ will receive targeted support, including £300,000 worth of expert planning assistance over two years. This is intended to help underperforming councils improve standards, repair more roads and deliver better outcomes for road users.
The Government says the wider package of reforms, alongside record multi-year investment totalling £7.3 billion, will provide councils with the long-term certainty they have long called for, while ensuring greater accountability in tackling the UK’s road maintenance backlog.
