Today I am announcing two key measures to boost funding for transport as part of the Government’s commitment to renew national infrastructure, improve England’s road network and drive growth as part of the plan for change.
First, I am setting out the details of what local highways authorities across England will need to do to unlock their full share of the £500 million funding uplift that the Government have announced for the 2025-26 financial year. This will help ensure that every penny of taxpayer funding for road repairs is delivering results and will help tackle the pothole plague, which is the result of a decade of under-investment by the previous Government.
For the first time ever, local highways authorities will have to publish a succinct report, in plain English, by the end of June, detailing what they are doing to improve the state of their local roads. This will shine a spotlight on what councils are doing with taxpayers’ money and allow local people to hold their councils to account. It will help ensure that the additional funding provided by my Department will be spent delivering the improvements that local people have every right to expect.
The Department has provided a template for these reports that sets out the information that is required. Each authority will need to explain how much it is spending on highways maintenance and how this has changed over time. Authorities will also need to give an overall picture of the condition of their roads, and a summary of how many potholes they have filled in each of the last five years, as well as what they are doing to shift their focus to long-term preventive maintenance. They will need to explain what they are doing to minimise the disruption caused by utility companies’ street works, and to make their highways networks more resilient to the changing climate.
Local highways authorities will also be required to send some further, more technical information to the Department by the end of October. This will summarise what each authority is doing to follow best practice and deliver innovation and efficiency. Authorities will have to provide information on matters such as whether they carry out customer satisfaction surveys to allow the public to have a say on local priorities, and whether they benchmark their performance with other authorities.
Authorities that comply in full with the requirements will receive their full share of the £500 million funding uplift, which for most authorities will mean an increase of almost 40% on average in highways maintenance funding compared to the current financial year. Authorities that do not meet these requirements will forfeit the final 25% of the funding uplift, with this money then redistributed to other councils to allow them to do even more to fix their local roads.
Secondly, I am providing details of a £4.8 billion interim settlement for National Highways in 2025-26 to keep the strategic road network working for the people and businesses that rely on it every day.
Delivery of this investment focuses heavily on operating, maintaining and enhancing the strategic network. Crucially, there is also a record investment in renewals, which is essential to keeping this vital network in good repair to avoid unplanned disruption, drive productivity and better connect people and business to support growth across the country.
The current road investment strategy (RIS) expires at the end of March 2025, and we intend to set a new multi-year strategy. But this requires time to plan, and the choices we make in that strategy will be informed by this year’s spending review.
In the absence of an RIS, I am laying in Parliament statutory directions and guidance to National Highways to cover the exercise of its functions beyond the expiry of the second road investment strategy, from 1 April 2025 to 31 March 2026 inclusive.
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