£1.6 billion to fix potholes

Councils are to receive £1.6 billion in funding to repair roads and fix potholes.

The funding marks an increase of nearly 50 per cent on local road maintenance compared to last year and should be enough to fix over 7 million extra potholes in 2025 to 2026.

Recent figures from the RAC show that drivers face an average of 6 potholes per mile in England and Wales. The cost of pothole damage to vehicles is around £500 on average.

Each local authority will use its share of the £1.6 billion for 2025 to 2026 to identify which of their roads are in most need of repair and to deliver immediate fixes.

Local authorities in north west, north east and Yorkshire and Humber will receive over £327 million and those in the East Midlands and West Midlands will get more than £372 million. There is over £244 million for local authorities in the East of England; over £322 million for local authorities in the south east and London; and over £300 million for local authorities in the south west.

Prime minister, Sir 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.

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.

"Millions will drive home for Christmas today, but too many will have to endure an obstacle course to reach their loved ones. Potholes damage cars and make pedestrians and cyclists less safe. We are investing £1.6 billion to fix up to 7 million more potholes next year.  

"This government is firmly on the side of drivers. Every area of England will get extra cash to tackle this problem once and for all. We have gone beyond our manifesto commitment to back motorists and help raise living standards in every part of the country."

The funding will have built-in incentives, with 25 per cent of the uplift held back until authorities have shown they are delivering.

The government has also announced that at least 50 per cent of surplus lane rental funds will be reinvested into highway maintenance. Lane rental schemes allow local highway authorities to charge companies for the time that street and road works occupy the road.

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 incentivising authorities that use the money to good effect.

Edmund King, AA president, said: "Drivers and riders across England will be pleased to see this significant cash injection into smoothing out the local road network. 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 utility 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."

Responding to the announcement,Cllr Adam Hug, transport spokesperson for the Local Government Association said: “This extra £500 million for local roads is helpful, but we would ask government to reconsider its decision to hold back a quarter of this funding, in order to give councils the greater certainty they need.

“Councils already spend considerably more on maintaining their highways than what they receive from central government.

“Fully funding councils will enable them to far more effectively plan for and invest in preventative treatments which keep surfaces in better condition for longer and prevent potholes, which are more expensive to repair.

“Greater long-term investment is needed if we are to reduce the £16.3 billion repair backlog and next year’s Spending Review provides an opportunity to give councils this funding certainty.”