Councils warned they risk losing pothole cash unless they prove roads are improving

Councils in England have been warned they could lose around a third of their road maintenance funding unless they can prove they are spending it effectively, as ministers tighten the rules around the battle against potholes. The crackdown reflects mounting frustration at the state of local roads despite record sums being made available for repairs.

Of the £1.6bn allocated for local roads maintenance in the 2026/27 financial year, some £525m will be held back unless authorities can demonstrate they are using the money appropriately and have credible long-term plans to keep roads in good condition.

The condition of local roads is consistently cited as the single biggest concern among the nation's drivers, with surveys showing that close to half rank the state of council-run roads as their top motoring bugbear.

The scale of the problem

The figures underline how costly the pothole epidemic has become. Analysis of insurance data suggests that a quarter of all pothole-related damage claims now result in vehicles being written off, with the average claim standing at thousands of pounds, many times the cost of simply filling the hole in the first place.

Motoring organisations report tens of thousands of pothole mentions over the course of the year, equivalent to hundreds a day, painting a picture of a network struggling to cope after years of underinvestment and harsh winters.

Beyond the damage to vehicles, potholes pose a serious danger to cyclists and motorcyclists, for whom a sudden crater can mean a life-changing crash rather than a buckled wheel. Repair backlogs across England are estimated to run into billions of pounds, a figure that has grown faster than the funding made available to tackle it.

• £1.6bn allocated for local road maintenance in 2026/27.
• Around £525m to be withheld unless councils prove effective spending.
• Councils graded red, amber or green on road condition and spending.
• Authorities must publish reports showing how highways cash is used.
• Roughly a quarter of pothole damage claims now end in a write-off.

New rules for councils

Under the new requirements, councils must publish detailed reports showing that their highways funding is being spent purely on road maintenance, backed by long-term plans signed off by senior members and supported by proper training for highways teams.

The Government has graded 154 local highway authorities with red, amber or green ratings based on the condition of their roads and how effectively they are deploying their share of a record multi-billion-pound funding pot.

“Drivers are sick and tired of dodging potholes on their daily journeys. This funding comes with strings attached because the public deserves to see real improvements on the roads they use every day.”

Reaction from drivers and councils

Motoring groups broadly welcomed the focus on results, arguing that drivers have endured years of patch-and-mend repairs that fail to address the underlying decay of the network. They called for sustained, long-term funding rather than year-by-year settlements.

Council leaders, however, warned that they have been left to manage decades of underfunding and that threatening to withhold cash risks punishing the very authorities struggling most to keep up. They argued that stable, multi-year funding would do more to fix the roads than the threat of penalties.

“Councils want nothing more than to fix their roads, but they need certainty of funding to plan properly. Holding back money from struggling authorities risks making a bad situation worse, not better.”

Background

Potholes have become one of the most visible symbols of strain on Britain's public infrastructure, with the cost of clearing the repair backlog estimated to run into billions of pounds. Years of severe weather, heavy traffic and constrained budgets have combined to leave many local roads in poor condition.

Ministers have repeatedly pledged additional funding, including commitments to fill millions more potholes, but have faced criticism that money alone has failed to turn the tide.

What happens next: councils will need to publish the required reports and demonstrate progress to unlock the full funding available to them in the coming financial year. The Government will be watching closely to see whether tying cash to results finally delivers the smoother roads drivers have long demanded.