How the government is getting tough on UK councils over pothole failures

British councils risk losing up to a third of the funding they allocate to fix potholes if they fail to show they are working effectively, the Department for Transport (DfT) has announced.

Around £525 million of the £1.6 billion funding allocated to maintaining local roads in the 2026/27 financial year will be withheld unless authorities prove they have spent the money appropriately.

This is more than £500 million above the same amount in the previous 12 months.

Municipalities are required to publish reports showing that they spend all the money they receive from highways on road maintenance and that they have made long-term plans to protect the roads.

This includes signing off policies by senior local government members and training highway crews.

Roads minister Simon Lightwood said: “Motorists deserve hassle-free, safe journeys and we’re ensuring every pound goes directly into repairing roads and removing potholes, rather than being spent elsewhere.

“We have made clear that councils that fail to maintain their roads will now risk losing up to a third of their funding.

“And for the first time, we’re providing multi-year funding to councils so they can plan properly and reverse the decade-long decline in our roads.”

AA chief Edmund King said it was “right that councils’ repair plans are scrutinized” and called on them to “use their funds to resurface roads rather than patching streets”.

RAC head of policy Simon Williams said: “It is critical to ensure that money given to councils to improve roads is actually spent on roads, so the Government’s focus on this issue will be welcomed by motorists.”

Last month, the cost of restoring pothole-ridden local roads in England and Wales was estimated to have risen to a record £18.6bn.

Earlier this month, the pothole crisis in England and Wales was described as a “national disgrace” as the cost of repairs rose to £18.6bn.

A new report from the Asphalt Industry Alliance (AIA) reveals that only 51 percent of the local road network is currently in good condition.

Despite increased investment, efforts to combat the widespread pothole problem have failed to deliver “noticeable improvements”; roads are only resurfaced every 97 years on average.

Last year alone, 1.9 million potholes were filled across the country, underscoring the ongoing challenges.