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AIA comments on local roads funding in the Government’s Spending Review

Please attribute comments to David Giles, Chair of the Asphalt Industry Alliance (AIA):

“We understand that there are tough funding decisions to be made but it seems as though the Chancellor has missed the opportunity to make a long-term commitment to maintaining our local roads in today’s Spending Review. If this is the case, it will only result in further deterioration of this vital asset and an even bigger bill to put it right in the future.

“Local authorities have told us they need their highway budgets to more than double for the next five to 10 years if they are going to be able to address the backlog of repairs, which is now almost £17 billion* in England and Wales.

“So, while the Government’s commitment to additional funding for the 2025/26 financial year – the short-term cash injection with greater accountability announced in December – was welcome, it is unlikely to improve structural conditions or reduce road user complaints.

“It looks like overall DfT roads funding to 2030 has been cut to £24 billion (for both National Highways and local authorities) but further clarity on who will receive what share, how and when, is not evident. Nor is the level to which MHCLG resource funding allocations for highway maintenance may be impacted.

“That’s why we were hoping that the Government would commit to more certainty within this multi-year Spending Review funding horizon to give local highway engineers the visibility to allow them to “….invest in significantly improving the long-term condition of England’s road network…” and not just manage the decline of the network.

“Ultimately, investing in local roads** provides an effective return on investment for tax payers – provided that investment is sustained. It feels as if another opportunity has slipped by to help drive growth and make a lasting change to the condition of the roads on which we all rely.”

* Source Asphalt Industry Alliance Annual Local Authority Road Maintenance (ALARM) 2025 survey report.

** DfT figures indicate that: for every additional £1 invested, there is an absolute minimum return of £2.20, with analyses identifying typical returns of up to £9.10 at a national level. (Source: DfT’s economic appraisal for investing in local highways maintenance)

“Government commitments to local roads spending  is welcome, but short-term cash injections, even with greater accountability and strings attached, are not likely to improve conditions.

“Decades of underfunding now means that the backlog of carriageway repairs stands at almost £17 billion and one in every six miles of the local road network reported to have less than five years’ structural life remaining*. So, if we want our local roads to improve, the focus needs to shift from the number of potholes filled to giving local highway engineers the tools to do the job so that they don’t form in the first place.

“Local authorities have told us they would need their budgets to more than double for next five to 10 years to tackle the backlog of repairs. That’s why we have been calling for a multi-year frontloaded and ring-fenced funding commitment, similar to those that the rail and motorway sectors benefit from. This would allow authorities to plan, provide better value for money for taxpayers and deliver a more resilient network while helping to kickstart the Government’s economic growth plans.”

*Source Asphalt Industry Alliance Annual Local Authority Road Maintenance (ALARM) 2025 survey report.

“The findings of the Public Account Committee’s (PAC) inquiry into local roads in England highlight the critical challenges facing our local roads, many of which our Annual Local Authority Road Maintenance (ALARM) survey has reported for many years.

“We were reassured to see that the PAC agrees that a step-change is needed. Its recommendations for longer-term and simplified funding streams so that local authorities can proactively repair and maintain local roads and deliver better value for taxpayers, is what we’ve been calling for.

“We also back its call for greater consistency in how road conditions are assessed, and how this could translate into needs-based funding, as well as the need to evaluate and revise Local Authority delivery approaches as a means of getting our roads back on track.”

“As the Government considers its Spending Review it’s clear that the PAC’s recommendations need to be adopted in full if we want an improved local road network that is resilient and fit for the future.”

 

The Asphalt Industry Alliance’s (AIA) https://committees.parliament.uk/writtenevidence/131269/html/submission to the Public Accounts Committee’s (PAC) inquiry into local roads in England was referenced in the inquiry’s November 2024 hearing.

“It’s important to remember that the challenge to improve the condition of our local road network goes beyond simply filling in potholes.

“We know from our Annual Local Authority Road Maintenance (ALARM) survey 2024 that local road conditions are at an all-time low due to decades of underfunding[1] and that it would now cost more than £16 billion to tackle the backlog of repairs across England and Wales[2].

“If we want to see want to see improved conditions, local authorities need sustained, targeted and accountable funding – provided on both a needs and improvement basis – over the long term. This would allow highway engineers to carry out the right maintenance and repair interventions at the right time – delivering better value for money for the public funds allocated and helping to ensure we have a local road network that is safe, keeps people connected and supports economic growth.”

[1] ALARM 2024 reports that only 47 per cent of roads in England and Wales (including London boroughs) are classified as being in a GOOD (15 years’ or more of life remaining) structural condition.

[2] ALARM 2024 states that and that it would now cost £16.3 billion to tackle the backlog of carriageway repairs – as a one off – to bring the local road network up to a condition that would allow it to be managed cost effectively going forward as part of a proactive management approach.

 

The shift towards active modes of transport that took place during the pandemic has not been maintained, highlighting the continued challenges facing policy makers to promote a healthy lifestyle.

It is just one of the many trends highlighted on RoadFile, the Asphalt Industry Alliance’s (AIA) online hub of road-related statistics, which is updated every two years. The comprehensive 2024 update brings together the most up-to-date publicly available data from trusted UK and EU sources, such as the Department for Transport (DfT), as well as Eurostat for comparison with our European neighbours.

RoadFile presents key information in an easy-to-use format with options to download the data to facilitate further analysis. It covers topics such as road usage, traffic volume, safety, environment and funding.

The latest update shows that the spike in cycling reported in England in 2020 as a result of Covid-19 (up 26 per cent) has not been sustained and in 2023 is reported to be at the lowest level since 2016.

It also reveals that UK public expenditure on all roads increased by 43.9 per cent between 2012 and 2023, but by 192.3 per cent on rail. And, in 2023, for every £1 from the public purse spent on UK’s railways in 2023, just 45p was spent on roads.

“RoadFile provides a valuable resource for road-related data and is widely used by those across the industry and beyond,” said AIA Chair David Giles.

“The updated data continues to highlight the reliance on road travel for both people and goods as well as the disparity of investment that exists between road and rail. Coupled with the findings of our 2024 ALARM survey, it highlights the urgent need for more long-term funding for local roads – on which every journey starts and ends – to keep them resilient and fit for purpose.”

“Less than half our local roads are currently in good state of repair1, so today’s announcement detailing how local roads spending will be allocated will be well received by all relying on the local road network to drive home this Christmas.

“However, this cash injection will do little to help local authorities plan for the long term rather than just repeatedly filling in potholes. And, the funds concerned remain a fraction of what’s needed to prevent further decline2. Clarity is also needed on the how Government funds held back will be released to local authorities – so that road users can be confident that all monies earmarked go towards improving local roads.

“Our wish for the New Year is that this is a precursor to a multi-year ringfenced commitment from the Government to local roads. This will help to ensure better value for money for the public funds allocated and help to ensure we have a local road network that is safe, keeps people connected and supports economic growth.”

David Giles, Chair of the Asphalt Industry Alliance (AIA)

“It was encouraging to hear the Chancellor acknowledge that the condition of our local roads is a reminder of ‘our failure to invest as a nation’, however it’s disappointing that the opportunity to deliver a step change was missed.

“While, the additional £500 million for highway maintenance next year is welcome, it falls short of the long-term funding horizon the sector has been calling for. And, with a one-time catch-up cost of £14.4 billion* in England alone, this additional allocation is a fraction of what’s needed to prevent further decline.

“Local roads, which underpin all other local services, help support growth and are a key issue for members of the public and we know from our ALARM survey that conditions are at an all-time low, and that this is the result of decades of underfunding. Our hope was that the Chancellor would have announced a multi-year ringfenced commitment allowing local authorities to plan and proactively carry out the effective maintenance needed to drive improvement in our local roads.”

David Giles, Chair of the Asphalt Industry Alliance (AIA)

Next week Chancellor Rachel Reeves will deliver her first Budget and recent reports suggest a cut to spending is on the cards to try and plug the gap in the nation’s finances.

It is anticipated that one of the casualties will be the previous administration’s commitment to spend an additional £8.3 billion over 11 years on local roads maintenance (Network North funding). This raises the question of how local authorities are going to be able to address the repair backlog estimated in this year’s Annual Local Authority Road Maintenance (ALARM) survey at £14.4 billion for England alone.

In the run up to the General Election the Labour party’s manifesto pledged to fix an additional one million potholes across England in each year of the next parliament, in comparison to the 1.8 million pothole repairs in England reported in ALARM 2024. Now, in Government, Lilian Greenwood, Minister for the Future of Roads, told the audience at Highways UK earlier this month that she was committed to investing in local roads, but at what level remains to be seen.

“We know from ALARM that the condition of our local roads is at an all-time low, and that this the result of decades – not just recent years – of underfunding as well as the effects of all the physical and climatic challenges on a deteriorating network,” said David Giles, Chair of the Asphalt Industry Alliance (AIA).

“It’s clear that current approaches to highway maintenance funding are not delivering for road users. It’s time for a rethink and we call on the new administration to place improving local road conditions at the heart of the Government’s transport policy.

“We urge the Chancellor to commit to adequate sustained, targeted and accountable funding for local roads – provided on both a needs and improvement basis – over the long term. This will allow local authorities to plan and proactively carry out the right maintenance intervention at the right time to the greatest benefit of all road users, rather than just having enough money to address immediate and urgent repairs. Without it there will be a continual decline in the condition of our local roads on which we all rely.”

Please attribute comment to David Giles, Chair, Asphalt Industry Alliance

“The results of the National Audit Office report clearly echo those of our Annual Local Authority Road Maintenance (ALARM) survey reports across the years and confirm what we already know – the condition of our local roads is now at an all-time low and there are significant challenges ahead if we are to see significant improvements.

“The report consistently refers to the results of our ALARM survey, highlighting its importance as a credible source of data, and the AIA welcomed the opportunity to provide information for review in this process.

“The NAO report makes some strong recommendations for how the DfT can help improve its understanding of the condition of the network in England, its approach to funding and its support and guidance for local authorities to help them deliver effective and efficient highways maintenance.

“We stand by the calls made in our 2024 ALARM survey report for sustained, targeted and accountable funding for local roads, which are complementary to those NAO recommendations. Without clarity on how much money will be made available over the life of this Parliament, as well as an effective ring-fence mechanism, local authorities will be unable to carry out the proactive maintenance required to improve conditions for the benefit of all road users.

“Swift action needs to be taken and we look forward to working with the new Ministerial team at the
DfT to support efforts to improve local road conditions and address the £14.4 billion carriageway
maintenance backlog reported in England in this year’s ALARM survey.”

“We look forward to working with the new Ministerial team at the DfT on efforts to improve the condition of our local road network and acknowledge Labour’s manifesto promise to ‘maintain and renew our road network’, through investment.

“However, given the £14.4 billion highway repair backlog in England alone reported in our Annual Local Authority Road Maintenance (ALARM) survey report this year, it’s clear that the incoming Transport Secretary (Louise Haigh) and Future of Roads Minister (Lilian Greenwood) have a considerable challenge to address that funding gap in order to deliver tangible improvements to the local road network by the end of the Parliament.

“Nevertheless, we are encouraged by Lilian Greenwood’s appointment as she is acutely aware of local road funding issues, having led an inquiry on the subject in 2018 – to which we submitted evidence – when she was Chair of the Transport Select Committee.

“A first step would be giving local authorities clarity on whether the new Government’s manifesto pledge to spend £65 million each year is in addition to the funding reallocated from Network North funding*. Local authorities have built the £8.3 billion announced by the previous administration into their budgets and are relying on it to begin tackling their maintenance backlog. Plus, more detail is needed on how maintenance funds will be rolled out and if there will be an effective ring-fence to ensure improvements.

“The AIA has long called for sustained, targeted and accountable funding for local roads. Only by having a secure long-term funding horizon will local highways teams be able to plan effectively and carry out maintenance work in the timeliest way to the greatest benefit of all road users and the public purse.”

*In October 2023 the Conservative Government announced an £8.3 billion has been allocated to highways maintenance as part of the Network North plan in England (including London) between (2023/24 and 2033/4).