Councils failing to meet standards risk losing pothole funds

Government has introduced new rules requiring local councils in England to demonstrate how they are using pothole funding, with authorities facing the possibility of losing a portion of their allocation if they fail to meet performance standards.

image: gov.uk

Under measures set out by the Department for Transport (DfT), councils that cannot show they are effectively maintaining roads and spending highways funding on repairs could lose up to a third of their share of a £1.6bn pothole funding package for the next financial year. The government said £525m of the total allocation will be withheld from councils unless they can prove they are delivering improvements in road condition and maintenance standards.

The policy forms part of a wider effort to ensure that local highways funding is used specifically for road maintenance rather than being diverted to other priorities. Councils will be required to publish detailed reports setting out how funding has been spent, alongside long-term maintenance plans and evidence of asset management and staff training within highways teams.

As part of the reforms, the government has also continued its system of “road maintenance ratings”, which classifies local authorities based on how effectively they are using funding to address potholes and maintain road networks. Councils assessed as underperforming will be offered additional support, including targeted assistance to improve planning and delivery.

Roads and Buses Minister Simon Lightwood said the changes were intended to ensure public money is used directly on improving road conditions, arguing that drivers expect visible improvements in return for record levels of investment in local highways. He added that councils which fail to meet expectations would face financial consequences under the revised system.

The government said the reforms are designed to improve accountability and reduce the long-term cost of road damage, which it estimates costs motorists hundreds of pounds on average in avoidable repairs. It also pointed to broader investment in local road maintenance aimed at improving road safety and reducing disruption caused by potholes.

Industry bodies including the AA and RAC have previously supported stronger oversight of pothole funding, arguing that better accountability and longer-term maintenance planning are needed to improve road conditions across the UK.

Local authorities have in past responses to similar policies raised concerns about funding pressures and the condition of the road network, with some arguing that rising repair backlogs make it difficult to deliver rapid improvements without sustained long-term investment.

• Transport Secretary Heidi Alexander’s car was recently damaged after hitting a pothole while travelling in Oxfordshire, according to reports. The incident involved her Mini Cooper striking a large pothole, leaving the vehicle needing assistance from breakdown services. The Transport Secretary has previously highlighted the scale of pothole damage across the country and has supported measures aimed at improving road maintenance standards and requiring councils to demonstrate how they use repair funding.