Councils get £1.6bn to fix 7 million potholes

With figures from the RAC showing drivers encounter an average of six potholes per mile in England and Wales, the Government has allocated £1.6 billion to make roads safer.

The cash-injection will be welcomed by fleet decision-makers, who have been counting the cost of potholes, with one fleet having to write off a car with thousands of pounds worth of damage.  

A fifth (21%) of insurance claims where a car hit a pothole leads to the vehicle being declared an insurance write-off, according to data from Allianz.  

The insurer has paid out more than £4.6 million for 1,266 pothole claims since the start of last year. 

The Government says that the increase of nearly 50% on local road maintenance funding from last year, and is enough to fix the equivalent of over seven million extra potholes in 2025/26. 

Transport secretary Heidi Alexander said: “Potholes have plagued motorists for far too long, but today’s record investment will start to reverse a decade of decline on our country’s roads. 

“Potholes damage cars and make pedestrians and cyclists less safe. We are investing £1.6bn to fix up to seven million more potholes next year.”

Drivers and fleets are also being encouraged to report potholes in their area to their local council through a dedicated Gov.uk page.    

Local authority allocations of the £1.6bn include: £327m for local authorities in North West, North East and Yorkshire and Humber; £372m for local authorities in East Midlands and West Midlands; £244m for local authorities in the East of England; £378m for local authorities in South East and London; and £300 million for local authorities in the South West.

“The funds concerned remain a fraction of what’s needed to prevent further decline,” David Giles, Asphalt Industry Alliance

The Government says it will make sure authorities spend the money wisely, collect the right data, and deliver proactive maintenance before potholes start to form. 

The funding has built-in incentives, with 25% of the funding held back until councils have shown that they are delivering.  

“Every area of England will get extra cash to tackle this problem once and for all,” continued Alexander. 

The Government has also announced that at least 50% of surplus lane rental funds will be reinvested into highways maintenance. 

Lane rental schemes allow local highway authorities to charge companies for the time that street and road works occupy the road.  

Furthermore, the Department for Transport (DfT) is consulting on devolving powers to approve lane rental schemes, which are currently with the transport secretary, to local mayors. 

This, says the DfT, will support the delivery of more lane rental schemes and put power back into local hands.  

Prime Minister Keir Starmer said: “Broken roads can risk lives and cost families hundreds if not thousands of pounds on repairs. That’s a cost that can easily be avoided by investing properly in our roads. 

“Through our Plan for Change we’re determined to put more money back into the pockets of hardworking people and improve living standards. That’s why we’re giving councils funding to repair our roads and get Britain moving again – with a clear expectation that they get on with the job.” 

On top of the funding, the transport secretary also announced a clampdown on disruptive street works, doubling fixed penalty notices for utility companies who fail to comply with rules and extending charges for street works that run into the weekend.  

However, Clive Bairsto, chief executive officer of trade association Street Works UK, says that the proposals will have “significant impacts on the street works sector” and the services it seeks to maintain.

For example, he said: “Expanding the lane rental scheme could compromise the quality and standards of streetworks, while increased fixed penalty notices will raise operating costs for utility companies without significantly improving compliance, hindering their ability to invest in vital upgrades.

“Street Works UK looks forward to working with the Government on the effective implementation of these proposals, ensuring that our members can continue carrying out the critical work that connects communities to essential services, while working to the highest standards to minimise disruptions and ensure high quality and lasting results.”

Industry reacts to pothole funding

RAC head of policy Simon Williams said: “This is the biggest one-off road maintenance funding settlement councils in England have ever been given, so we have high hopes it’s the turning point that ends the degradation of our roads and finally delivers fit-for-purpose, smooth surfaces for drivers and all other road users.  

“What’s particularly positive is that this announcement is not just about giving councils money to fix dangerous potholes, it comes with the important caveat of using the money wisely by carrying out preventative maintenance to stop more potholes appearing in the future. 

“It’s also good to see the Government proactively encouraging drivers to report potholes, requiring councils to collect the right data to capture the true state of their road networks and incentivizing authorities that use the money to good effect.” 

Edmund King, AA president, added: “With most journeys starting and ending on local roads, it is vital to restore the structural integrity of the streets we live on. 

“We urge councils to focus on permanent and innovative repairs rather than adopting a ‘patch and run’ approach. Better maintenance of the road network is the number one concern of drivers as damage costs a fortune and potholes can be fatal for those on two wheels.  

“Clamping down on poor works carried out by utilities companies and overrunning roadworks is sorely needed, and we are pleased to see action being taken here. 

“Widening lane rental approval to local mayors should reduce red tape, and we hope it means more roads can be opened in first class condition.”   

However, while welcoming the additional cash, David Giles, chair of the Asphalt Industry Alliance (AIA), says it will do little to help local authorities plan for the long term rather than just repeatedly filling in potholes.

“The funds concerned remain a fraction of what’s needed to prevent further decline,” he added

“Clarity is also needed on the how Government funds held back will be released to local authorities – so that road users can be confident that all monies earmarked go towards improving local roads.

“Our wish for the New Year is that this is a precursor to a multi-year ringfenced commitment from the Government to local roads. This will help to ensure better value for money for the public funds allocated and help to ensure we have a local road network that is safe, keeps people connected and supports economic growth.”