Innovative measures to cut the number of rush hour road works were announced today by transport secretary Philip Hammond.

Under ‘lane rental’ schemes councils would be able to charge utility companies to dig up the busiest roads during peak times when road works cause the most disruption. Companies would be able to avoid the charges by carrying out works during quieter periods or, if appropriate, at night.

Hammond said: "Everyone knows how frustrating it can be when you are sat in a traffic jam, unable to get to work or drop off the children at school because someone is digging up the road.

"This disruption is expensive as well as inconvenient, with one estimate valuing the loss to the economy from road works congestion at £4 billion a year. We simply cannot afford this.

"That is why I am putting forward proposals which would incentivise utility companies and local authorities to carry out their works at times when they will cause the minimum disruption to the travelling public.”

The Department for Transport has today published a consultation and draft guidance to councils outlining how lane rental schemes could be implemented. Any councils wishing to put in place a lane rental scheme would need to gain approval from the Department.

In order to gather evidence on the effectiveness of lane rental, the Department has proposed that schemes should initially be used in one urban and one non-metropolitan area.

The proposals are clear that lane rental charges must be avoidable and proportionate to the costs of congestion. Councils are also being encouraged to apply the same principles to their own works and come forward with lane rental schemes which fit the needs of their local area.

Any revenue raised from the implementation of lane rental charges would be used by councils to fund measures which could help to reduce future road works disruption. This could include infrastructure work, research or measures to improve the management of works.

The consultation will close on 31st October 2011.