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

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)