Councils risk losing pothole repair cash if they don’t do these things…
Local authorities face losing some or even all of their £525million ‘incentive element’ funding if they don’t comply with new Government rules

Councils must demonstrate they spend all their allocated road maintenance cash on fixing streets and potholes or otherwise risk losing their funding. That’s one of several new rules being implemented by the Government in order to help restore Britain’s crumbling road network.
In 2026, local authorities are set to receive a share of roughly £1.6billion in road maintenance funding, however, roughly a third of this (designated an ‘incentive element’) could be taken away if each council does not comply with new rules set out by the Government. To unlock 50 per cent of the incentive, authorities must now publish an annual transparency report so that local residents are able to see exactly where and how effectively money is being spent.
The next 25 per cent can be awarded by ensuring that all appropriate funding is ringfenced for road maintenance projects. The RAC’s head of policy, Simon Williams, said: “Ensuring money that is given to councils to improve their roads is actually spent on roads is critical, so the government’s focus on this will be welcomed by drivers.”
Finally, publication of long-term proactive maintenance plans and demonstration of learning when it comes to maintenance techniques, such as courses for highways staff or participating in trials, will unlock 12.5 per cent each respectively.
Roads and buses minister, Simon Lightwood MP, said: “Drivers deserve smooth, safe journeys and we’re making sure every pound goes straight into fixing roads and tackling potholes, not being spent elsewhere.
“We’ve made it crystal clear that councils that fail to maintain their roads will now risk losing up to a third of their funding.”
This comes as part of a new multi-year funding plan for local road maintenance in which it’s hoped that by 2029/30, councils will receive a share of £2billion per year to fix roads under their jurisdiction.
The Asphalt Industry Alliance welcomed the funding plans, although chairperson, David Giles, warned : “It is not the silver bullet that will allow local highway engineers to fully deliver the necessary resurfacing and proactive programmes that will prevent potholes forming in the first place.”
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