Councils warned to fix potholes properly or risk losing road funding

Councils across England have been warned they could lose a significant share of government funding for road repairs if they fail to show that money is being properly spent on fixing potholes.

Under new rules announced by the Department for Transport (DfT), local authorities must provide clear evidence that dedicated funding is being used for road maintenance, and is not diverted elsewhere. Those that fail to comply risk losing up to a third of their allocated cash.

The government says the measures are designed to improve accountability and ensure taxpayers see real improvements on local roads, which continue to suffer from widespread pothole damage.

Remember, you can buy a brand new or used car right here on Carwow. And you can sell your car, too. We’re here to help you through every step of your car-changing journey.

Road funding with conditions attached

Around £1.6bn has been set aside for local road maintenance for the coming financial year, but a significant portion – around £545m – will be held back unless councils meet strict reporting requirements.

Authorities will be expected to publish detailed reports showing how they are spending their highways budgets, how many potholes they have repaired, and what long-term maintenance plans they have put in place.

Councils will also need to prove stronger governance, including approved policies and training for teams, as part of efforts to ensure consistent and effective use of funds.

“Making sure every pound goes straight into fixing roads”

Roads minister, Simon Lightwood, 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.

“Potholes aren’t just an inconvenience – they cost drivers hundreds, if not more, every time they cause damage to a vehicle. Fixing our roads is one of the most impactful things we can do to reduce the cost of owning and driving a car and we’re making sure every pound goes straight into doing exactly that.”

Lightwood adds that they’ve made it “crystal clear” that councils that fail to maintain their roads will now risk losing up to a third of their funding.

The government is also giving councils multi-year funding “so they can plan properly and reverse a decade of decline in our roads”.

Growing pressure over pothole crisis

The move comes amid mounting concern about the condition of local roads across England, with drivers frequently reporting damage to vehicles caused by potholes and uneven surfaces. This damage costs the average driver around £500, according to the DfT.

The backlog for repairs has also reached tens of billions of pounds, with many roads requiring full resurfacing rather than repeated patch repairs, according to a report by the Asphalt Industry Alliance (AIA).

Despite recent investment from the government, critics say improvements have been slow, prompting ministers to tighten oversight and ensure funding is spent more efficiently.

What is means for you

For everyday drivers, these stricter rules will ultimately result in fewer potholes and better maintained roads.

If councils comply with the new rules, you should be able to see more visible repairs, fewer repeat potholes appearing in the same places, and improved long-term quality instead of short-term patching.

However, the impact may not be immediate. Councils that fail to meet the new standards could lose part of their funding, which may temporarily slow repair work in some areas. This may lead to continued frustration in places where road conditions are already poor.

The government hopes that this stricter system will reduce vehicle damage, lower repairs costs for drivers, and make journeys smoother and safer across England.

Car change? Carwow!

Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.

Click here to follow us on WhatsApp, where you can keep up-to-date with all the latest news, reviews, advice guides and videos.