Councils warn they will have to scale back road maintenance as local authorities could face a £500m funding reduction

England’s largest county and rural councils could lose almost £500m in local roads maintenance funding by April this year, despite the government’s commitment to tackling the scourge of potholes.

The County Councils Network’s (CCN) analysis of indicative roads maintenance funding reveals for county and rural councils outside of England’s major cities and urban areas could receive £727m next financial year – a reduction of £480m compared to what they received two years ago. This equates to filling 11.5 million potholes.

CCN says this reduction, based on an analysis of the government’s Spending Review document, will mean that local authorities will have little choice but to cancel or scale back planned road maintenance works from April as a consequence.

County leaders said that they welcomed the announcement in 2019 of  ‘the biggest-ever pothole filling programme’, which included £2.5bn in additional funding to councils over the course of the Parliament.

However, county authorities could receive 40% less than they did two years ago. This could leave them grappling with a clear public expectation that councils would continue to invest in their road network –  but with significantly less money to do so.

In contrast Mayoral Combined Authorities – which cover England’s major cities and urban areas – are to benefit from significant investment in road and transport infrastructure through a new dedicated £5.7bn Fund over the next three years.

The funding reduction for areas outside of the major cities comes despite analysis by CCN showing that 13,000 miles of road were identified across those 36 county areas as requiring maintenance last year – 9% of the total mileage in those places and five times the amount of England’s largest cities, including London.

In 2020/21, the first tranche of the pothole fund saw funding rise to £1.206bn for 36 county and unitary councils outside of England’s major cities. However, two years later, capital funding for these authorities could fall to just £727m next year – a cut of £480m.

County authorities in the South West could see the biggest reduction in funding over the period – £100.7m, the equivalent of 2.4 million potholes being filled. Counties in the South East could lose £87.1m, the equivalent to 2 million potholes. County local authorities in the East of England are in line to lose £71.4m – equivalent to 1.7 million potholes being filled.

With inflation adding an average of 7.8% to road maintenance costs alone, and with wider financial pressures facing county authorities, many will face little choice but to reduce investment: cancelling planned works and filling in less potholes – doing ‘reputational damage’ to both local and national government.

CCN is calling for the government to either find additional resources to maintain their manifesto pledge, or reprioritise funding from other budgets, such as the City Region Sustainable Transport Settlements, to ensure that county and unitary authorities outside England’s major cities do not face unfair and disproportionate reductions in capital funding.

Cllr Martin Hill, County Councils Network Devolution Spokesperson said:

“The government’s commitment to increase pothole funding by £500m was strongly welcomed by county leaders in all four corners of England. It is important that communities across the whole country receive levelling-up support, and with over 13,000 miles of roads in areas outside of the major cities areas requiring maintenance, ensuring these roads are in good condition is vital.

“But a  potential £479m drop in funding between 2021 and 2023 is hugely significant and is the equivalent of filling over 11 million potholes. With the government making such a clear announcement that it was increasing pothole funding in 2019, we are left grappling with the public’s expectation that we are able to continue to invest in our road network.

“Unless this reduction is reversed, and the government provides an urgent injection of resources to match the level it distributed in 2020/21, then we will have little choice but to cancel planned works. This would represent a major scaling back of our ambitions.”

Notes to editor

Regional funding reductions and state of local roads

Regional figures include county authority areas within the CCN membership only

• The figures used to calculate road maintenance funding for 2020/21 includes all the funding pots for local authorities, as set out in this document The figures used to calculate roads funding for councils in 2021/22 includes all the funding pots for councils, as set out in this document here.
• To estimate funding for 2022/23 CCN has assumed, in line with Spending Review Documentation, that the £2.7bn for road maintenance over the next three years is evenly spread at £900m per annum for areas outside of England’s combined authorities. The funding is distributed using the same formula as previous years, excluding combined authorities who will be funded separately through City Region Sustainable Transport Settlements. In line with previous years, total funding includes funding for Integrated Transport Block. We have anticipated the level of this funding element remains flat at £260m as part of the overall £900m funding in 2022/23.
• This is because the funding is to be distributed using the same formula as previous years, excluding combined authorities who will be funded separately through City Region Sustainable Transport Settlements. This funding figure, which is a reduction for 2022/23, was then added the reduction in 2021/22 to create an overall figure.
• The figure on the number of potholes that could have been repaired is based on the latest ALARM 2021 Road Repair Survey which estimates that the average pothole repair costs an average of £41.61 to carry out.
• The number of miles identified as requiring repairs is based on 2020/21 figures from the Department for Transport. To obtain mileage per council type and region, averages for all road types that should be considered for repairs were calculated, and this percentage number was compared against the total mileage for that council type or region to get a numerical figure on the mileage requiring repair.