Local authorities in England must now prove they are spending road maintenance budgets on fixing potholes, or risk losing a significant portion of future funding.
Under new rules announced today, councils that fail to demonstrate effective road repairs could see around a third of their £1.6 billion annual allocation withheld for the following year. The government said the move is designed to ensure record levels of investment in local roads translate into visible improvements for drivers.
Pothole damage is believe to cost the average motorist approximately £500 in avoidable repairs.
A total of £525 million is being held back from authorities across England unless they meet strict new transparency requirements. Councils will need to publish reports confirming that all highways funding is being directed purely towards road maintenance. They must also set out long-term strategies for looking after local roads and demonstrate better training for their highway engineering teams.
The government has introduced a rating system for council performance. Authorities rated ‘red’ for poor performance will receive additional support to help them improve, with the goal of delivering visibly smoother and safer roads for local communities.
Officials said the changes would put an end to the practice of road maintenance budgets being redirected to other council services. Under the new framework, every pound allocated for fixing potholes must go directly towards that purpose.
The announcement follows sustained public frustration over the state of local roads across much of England. Many councils have struggled to keep pace with repairs, particularly after a series of harsh winters that have worsened road surface deterioration.
The government said the measures would give taxpayers confidence that their money is being used effectively, while providing a clear incentive for councils to prioritise road maintenance. Authorities that demonstrate strong performance and transparency will receive their full allocation without penalty.
The new requirements take effect immediately, with councils expected to publish their first compliance reports within months.
Edmund King, AA president, said: ‘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.’
Photo: Marianna Zuzanna
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