The Government has announced a record £1.6bn investment to fill potholes and repair roads across England for 2025-26.
The figure includes the £500m uplift in funding pledged in the Autumn Statement and is up nearly 50% on local road maintenance funding from last year.
The extra funding follows Labour’s manifesto commitment to fix an additional one million potholes a year – the uprated investment is actually enough to fix the equivalent of over seven million extra potholes in 2025/2026.
The Government is also making 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 this uplift held back until authorities have shown that they are delivering.
And the Government is also encouraging the public to report potholes in their area to their local council.
On top of this funding, the Transport Secretary has announced a clampdown on disruptive street works, doubling fixed penalty notices for utility companies that fail to comply with rules and extending charges for street works that run into the weekend.
The Government has also announced that at least 50% of surplus lane rental funds will be reinvested into highway maintenance, so that even more roads can be improved. Lane rental schemes allow local highway authorities to charge companies for the time that street and road works occupy the road.
Additionally, the department is also consulting on devolving powers to approve lane rental schemes, which are currently with the Secretary of State, to local mayors. This will support the delivery of more lane rental schemes and put power back into local hands.
The RAC and AA both welcomed the uplifted funding for pothole repairs.
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. ”
Latest RAC figures show drivers encounter an average of six potholes per mile in England and Wales and the cost of pothole damage to vehicles is around £500 on average, with more severe repairs costing considerably more.
Williams added: “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.”
According to the AA, fixing potholes is a priority for 96% of drivers.
Edmund King, AA president, said: “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.”
But David Giles, chair of the Asphalt Industry Alliance (AIA), had a different take.
“Less than half our local roads are currently in good state of repair, so today’s announcement detailing how local roads spending will be allocated will be well received by all relying on the local road network to drive home this Christmas.
“However, this cash injection will do little to help local authorities plan for the long term rather than just repeatedly filling in potholes. And the funds concerned remain a fraction of what’s needed to prevent further decline.
“Clarity is also needed on how the 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.”
The Government has announced how much each local authority is being allocated for pothole and roads repairs. Each local authority can use its share of the £1.6bn for 2025/2026 to identify which of their roads are in most need of repair and to deliver immediate fixes for communities and raise living standards across every area of the country. The allocations include:
- Over £327m for local authorities in north west, north east and Yorkshire and Humber
- Over £372m for local authorities in East Midlands and West Midlands
- Over £244m for local authorities in the East of England
- Over £322m for local authorities in the south east and London
- Over £300m for local authorities in the south west
