£398m fall in funding for local road maintenance

Despite new capital funding allocations for local road maintenance and pothole filling in 2021/22, analysis has found that funding for councils has fallen £398 million compared to last year.

In the Conservative manifesto the government committed to boost investment by £500 million per annum to tackle the scourge of potholes and help level up funding across the country. This was confirmed in the budget last March. Last year, the first tranche of this investment saw core capital funding rise to £1.783 billion. This allowed County Council Network member councils to undertake significant improvements to local roads, with planned capital investment by CCN member councils rising 13 per cent in a single year.

The CCN says that its member councils were anticipating similar capital allocations for the forthcoming year. However, the government’s latest announcement confirms that funding will fall to £1.385 billion.

Compared to the previous year, capital funding for councils to invest in road improvements and potholes will therefore reduce significantly by £398 million. With CCN member councils receiving 72 per cent of the core capital investment last year, these councils are disproportionately impacted by reductions, facing an average decline in capital grant of 22 per cent next year, a total of £285 million.

The CCN is calling on the government to use the forthcoming Budget to ensure that there is no reduction and the government fulfils its commitment to increase roads funding. Although the impact of the pandemic has led to additional costs and complexity in delivering services, CCN member councils have filled thousands of potholes and put in place local schemes to resurface entire roads; with improvements being seen and welcomed by our residents right across the country.  

Barry Lewis, Economic Growth Spokesperson for CCN said: “The government’s commitment to increase funding for potholes and local road maintenance by £500 million each and every year of this parliament was warmly welcomed by councils and MPs alike – who say the scourge of potholes are amongst their most frequent complaints in their mailboxes.

“However, the government has given with one hand and taken with the other, as the overall funding pot for roads maintenance will fall £398 million compared to last year. Our councils rely heavily on this capital funding to help tackle the backlog of roads repairs in their areas and to ensure their road networks are in a good condition: crucial to levelling up their areas.

“Unless further funding is made available, our councils will have no choice but to reduce their roads maintenance work this coming year. Councils are already facing unfunded additional costs from contractual arrangements due to the pandemic, while reducing planned works will negatively impact local employment and the economic recovery. We urge the Treasury to use the forthcoming Budget to ensure that there is no reduction and the government fulfils its commitment to increase roads funding.”