Recommendations & Conclusions
37 items
2
Conclusion
2nd Report - Condition and maintenance …
Accepted
The Department has insufficient knowledge of the condition of local roads. Industry estimates show that the condition of local roads across England is getting worse, which is also reflected in falling public satisfaction and higher levels of pothole related incidents. However, while the Department’s own data shows the condition of …
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The Department has insufficient knowledge of the condition of local roads. Industry estimates show that the condition of local roads across England is getting worse, which is also reflected in falling public satisfaction and higher levels of pothole related incidents. However, while the Department’s own data shows the condition of local roads has remained relatively stable, it accepts that this may not reflect people’s experiences. DfT acknowledges that its data in some areas is poor and that it does not fully understand the condition of local roads in England. It is therefore implementing new data standards — PAS 2161 — with the aim of improving the quality and granularity of the data that it gathers from local authorities, although this will not be mandatory until April 2026. In addition, the Department will still not collect information on the condition of other parts of the road, including walkways, cycle paths and bridges from local authorities. The Department says that it does not ask local authorities for 4 further information as it is trying to strike the balance between asking for enough information and not creating a large burden of work for each local authority. We are unconvinced that DfT has fully considered what additional burdens would be created in practice, as much of this data may already be collected by local authorities. recommendation The Department should make the case, with the Ministry for Housing, Communities and Local Government, for obtaining the data it needs to gain a greater understanding of the condition of the local road network.
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Government response AI summary
The government agrees to engage with MHCLG to obtain necessary data, noting it has already begun engagement to make new PAS 2161 reporting requirements mandatory in England's single data list.
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HM Treasury
3
Conclusion
2nd Report - Condition and maintenance …
Accepted
The Department’s approach to funding is short-term and fragmented, hindering local authorities from planning more cost-effective work. In the last decade funding for local roads has become more complex, with the Department providing funding to local authorities via 12 different funding pots, each with differing eligibility criteria. It has largely …
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The Department’s approach to funding is short-term and fragmented, hindering local authorities from planning more cost-effective work. In the last decade funding for local roads has become more complex, with the Department providing funding to local authorities via 12 different funding pots, each with differing eligibility criteria. It has largely provided funding to local authorities on an annual basis. This differs from how the Department supports the maintenance of other transport routes, such as the strategic road networks where funds are allocated on a five-year basis to enable long-term planning. The Department acknowledges that longer-term funding enables better value for money but has not taken steps to change the way it funds local roads. In addition, some of the funds have focused on specific issues, for example on repairing potholes, which are the result of poor maintenance. This short-term approach is likely to have pushed local authorities to focus more on reactive action rather than the preventative work that would offer greater value for money. recommendation a. As part of the next phase of the spending review the Department should simplify its funding to local authorities and provide more long-term certainty around the amount and duration of funding. b. The Department should make clear how it will effectively influence and monitor local road maintenance when the funding to local authorities is coming from different government departments and local authorities have more flexibility within the overall pool of money on how to prioritise spending.
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Government response AI summary
The government agrees with the recommendation and is reviewing its approaches to evaluating spending and data gathering for local highway maintenance, committing to publish information on Gov.UK detailing how it will influence and monitor local highways maintenance once these reviews are complete.
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HM Treasury
4
Conclusion
2nd Report - Condition and maintenance …
Deferred
The Department does not allocate funding to local authorities for the maintenance of local roads according to where it is most needed. The Department provides most of its funding to local authorities based on road length, number of bridges, and number of lighting columns in a local authority. It does …
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The Department does not allocate funding to local authorities for the maintenance of local roads according to where it is most needed. The Department provides most of its funding to local authorities based on road length, number of bridges, and number of lighting columns in a local authority. It does not, however, take into account traffic volumes or underlying road condition. Nor does it include other factors such as local 5 environmental conditions, for example whether a road is prone to flooding, and the additional wear and tear that would arise. The Department has also not explored with the Ministry of Housing, Communities and Local Government whether local authorities that charge a Community Infrastructure Levy money on new developments, may be permitted to spend this money on local road maintenance. recommendation a. As part of the next phase of the Spending Review the Department should revise the way it allocates funding to local authorities ensuring that funding also reflects the expected wear and tear of local roads due to the level of usage and local environmental conditions. b. The Department should also work with the Ministry for Housing, Communities and Local Government to explore the scope for local authorities to use surplus Community Infrastructure Levy funding on local road maintenance.
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Government response AI summary
The government agrees but only addresses the second part of the recommendation, stating that Community Infrastructure Levy (CIL) receipts can already be spent on infrastructure. It commits to exploring better communication about existing CIL funding and its potential uses, rather than exploring new scope for …
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HM Treasury
5
Conclusion
2nd Report - Condition and maintenance …
Accepted
The Department has not evaluated its approaches to funding local roads to know whether they are delivering value for money. Despite providing over £1 billion of funding each year to local authorities for the maintenance of local roads, the Department has not evaluated the totality of funding it has made …
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The Department has not evaluated its approaches to funding local roads to know whether they are delivering value for money. Despite providing over £1 billion of funding each year to local authorities for the maintenance of local roads, the Department has not evaluated the totality of funding it has made available and what it has achieved from this. It has evaluated one of the 12 funding pots it has used over the last decade. In particular, it has not evaluated its fund which used incentives to improve local authorities’ asset management practices, despite issues identified in the NAO report and its plans to use such an approach going forward. The Department has also not evaluated the effectiveness of funding of local road maintenance through Private Finance Initiatives (PFIs). recommendation The Department should evaluate approaches to funding local roads to determine what has been effective to help inform future approaches. This should include conducting interim evaluations on local authority PFI schemes.
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Government response AI summary
The government agrees and commits to commissioning a feasibility study in 2025 to understand the evidence base for local roads funding evaluations. Following this, a monitoring and evaluation framework will be developed for operation in 2026 to generate regular reports on the effectiveness and impact …
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HM Treasury
6
Recommendation
2nd Report - Condition and maintenance …
Accepted
The Department has not provided enough support and guidance to local authorities to deal with current and future challenges in maintaining local roads. The Department is responsible for providing local authorities with guidance on the management and maintenance of local roads. However, it has not updated its guidance for several …
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The Department has not provided enough support and guidance to local authorities to deal with current and future challenges in maintaining local roads. The Department is responsible for providing local authorities with guidance on the management and maintenance of local roads. However, it has not updated its guidance for several years, including on best practice, that could have helped local authorities in completing their work more effectively. The Department is looking to update its Code of 6 Practice for managing highway infrastructure for local authorities, but we are not clear whether this will be comprehensive in its consideration of road usage. For example, there are issues around safety, such as accessibility and visibility of walkways and cycle paths, which as technological and environmental requirements have developed may not have been considered. Future challenges also exist which the Department will have to consider, including how local roads will be fit for the introduction of autonomous vehicles and heavier electric heavy goods vehicles. recommendation a. As part of revising its Code of Practice, the Department should look to set out updated practices local authorities are expected to adopt and consider if following this best practice should be attached to funding. This should include guidance around supporting safety and accessibility for all road users, consideration of technology advances such as autonomous vehicles and consideration of the effect of maintenance on roads and bridges of heavier electric heavy goods vehicles, particularly if the 44 Gross Vehicle Weight were to be increased. b. The Department should regularly revise the Code of Practice as the road environment and the demands placed upon it continue to change. The Department should set out how it plans to do this in its response to the Committee’s report. 7 1 The Department for Transport’s oversight Introduction
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Government response AI summary
The government agrees and has commissioned TRL to develop a flexible structure for refreshed guidance, allowing individual sections to be updated independently to quickly integrate best practice. It will also establish a regular review rhythm for the guidance, provisionally every five years, to ensure its …
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HM Treasury
1
Conclusion
2nd Report - Condition and maintenance …
Accepted
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Transport (the Department) on the condition and maintenance of local roads in England.1
Government response AI summary
The government, treating this conclusion as a recommendation, commits to publishing a document on Gov.UK summarising legal responsibilities and expectations for highways maintenance. It will also set targets for local road condition in integrated settlement frameworks from 2025-26, extending to all Local Transport Authorities by …
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HM Treasury
7
Conclusion
2nd Report - Condition and maintenance …
Accepted
We asked the Department what outcomes it was looking to achieve from the funding it provides to local authorities, which is over £1 billion each year. The Department told us that this was a live discussion with Ministers as part of the spending review and it would be looking to …
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We asked the Department what outcomes it was looking to achieve from the funding it provides to local authorities, which is over £1 billion each year. The Department told us that this was a live discussion with Ministers as part of the spending review and it would be looking to determine what metrics should be used to measure those outcomes.10 The Department also confirmed that it does not know exactly how local authorities spend its funding as it is not ring-fenced, and that it does not seek reporting from 5 C&AG’s Report, para 3 6 C&AG’s Report, para 3 7 C&AG’s Report, para 2.4 and Figure 7 8 C&AG’s Report, para 3 9 C&AG’s Report, para 2 10 Q 36 9 local authorities on this. However, it told us that it is confident that its funding is being used on local road maintenance, given local authorities spend additional money in this area.11
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Government response AI summary
The government agrees and will publish a document clarifying responsibilities. It is also actively considering and working to use outcome frameworks to set clear expectations, including targets for road condition, and transport outcomes for local authorities.
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HM Treasury
8
Conclusion
2nd Report - Condition and maintenance …
Accepted
The Department acknowledged that setting out clearly who is accountable for local roads is very difficult, as it is a ‘mixed market’ of central and local government accountabilities. The Department told us that local authorities have the statutory responsibility to maintain local roads and that it only funds a part …
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The Department acknowledged that setting out clearly who is accountable for local roads is very difficult, as it is a ‘mixed market’ of central and local government accountabilities. The Department told us that local authorities have the statutory responsibility to maintain local roads and that it only funds a part of what they spend on local road maintenance. It recognised that national government also has a responsibility for the overall state of local roads, but the Department saw this to be around allocating national funding, for ensuring it has appropriate data and ‘knowing what’s going on’.12 The Department also told us that it is working closely with the Ministry of Housing, Communities and Local Government on the future accountability framework between central and local government in the context of integrated funding settlements for local government.13 The Department’s knowledge of the condition of local roads
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Government response AI summary
The government agrees that clarity on responsibilities is vital and will publish a document summarising legal responsibilities. It is also considering and working to use outcome frameworks to set clear expectations and transport outcomes for local authorities.
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HM Treasury
9
Conclusion
2nd Report - Condition and maintenance …
Accepted
The Department’s own data suggests that the condition of local roads has remained broadly stable. It reported that over the period 2015–16 to 2022– 23, the percentage of local roads rated ‘red’, which are roads that should be considered for maintenance, has been at 3 or 4% for A roads …
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The Department’s own data suggests that the condition of local roads has remained broadly stable. It reported that over the period 2015–16 to 2022– 23, the percentage of local roads rated ‘red’, which are roads that should be considered for maintenance, has been at 3 or 4% for A roads and 6% for B and C roads.14
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Government response AI summary
The government agrees and is considering additional data collection for local road conditions. It has begun engaging with MHCLG to make new British Standard (PAS 2161) reporting a mandatory requirement in England and is exploring greater data-sharing with Mayoral Combined Authorities.
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HM Treasury
10
Conclusion
2nd Report - Condition and maintenance …
Accepted
However, the Department also acknowledged that there has been a deterioration in the condition of local roads over recent years, based on independent reports and people’s perceptions in using the roads.15 The Asphalt Industry Alliance (AIA) estimated that in 2023–24, less than half of roads (48%) were in a ‘good’ …
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However, the Department also acknowledged that there has been a deterioration in the condition of local roads over recent years, based on independent reports and people’s perceptions in using the roads.15 The Asphalt Industry Alliance (AIA) estimated that in 2023–24, less than half of roads (48%) were in a ‘good’ structural condition, the lowest proportion since this measurement was first included in the survey in 2015–16.16 The AA also reported that in 2023 its patrols attended more than 631,000 pothole related breakdowns, a five-year high, and that the scale of damage to vehicles by potholes has grown.17 As a reflection of this deterioration in 11 Qq 42-43 12 Qq 27-30 13 Q 46 14 Q 6; C&AG’s Report, Figure 5 15 Qq 6, 22 16 C&AG’s Report, Figure 6; LRE0009, written evidence submitted by the Asphalt Industry Alliance (AIA) 17 C&AG’s Report, Figure 6; LRE0004, written evidence submitted by The AA 10 road conditions, an annual survey of road users by the National Highways & Transport Network, covering around 75% of local authorities, reported in 2023 that public satisfaction with road conditions was declining.18
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Government response AI summary
The government agrees with the committee's observation on the deterioration of local roads and is taking steps to gain a greater understanding of network condition. This includes engaging with MHCLG to make new PAS 2161 reporting requirements mandatory and exploring greater data sharing with Mayoral …
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HM Treasury
11
Conclusion
2nd Report - Condition and maintenance …
Accepted
The Department also expects the cost of dealing with the backlog in road maintenance to have increased since its last estimate in 2019 of between £7.6 billion and £11.7 billion. The Department told us that all the evidence suggested that the backlog would have become worse, given the severe weather …
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The Department also expects the cost of dealing with the backlog in road maintenance to have increased since its last estimate in 2019 of between £7.6 billion and £11.7 billion. The Department told us that all the evidence suggested that the backlog would have become worse, given the severe weather conditions and very wet winters in the years since its estimate, as well as accounting for inflation.19 The Asphalt Industry Alliance estimated the cost of the backlog in 2023–24 as over £15.6 billion, based on a survey of local authorities.20
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Government response AI summary
The government agrees with the committee's observation about the increasing road maintenance backlog and is taking steps to gain a greater understanding of network condition. This includes engaging with MHCLG to make new PAS 2161 reporting requirements mandatory in England and exploring greater data sharing …
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HM Treasury
12
Recommendation
2nd Report - Condition and maintenance …
Accepted
We asked the Department why its data presented a different picture of local road conditions compared to the worsening conditions that independent analysis and user experience were showing. The Department acknowledged that its data is not good enough. For example, on unclassified roads or C roads, which account for 62% …
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We asked the Department why its data presented a different picture of local road conditions compared to the worsening conditions that independent analysis and user experience were showing. The Department acknowledged that its data is not good enough. For example, on unclassified roads or C roads, which account for 62% by mileage of all local roads, it collects information on their condition from local authorities on a voluntary basis and over a four-year rolling average period rather than over two years for A, B and C roads, making it less robust and not up to date.21 The Department also presented other possible reasons to us, including that local authorities may be doing just enough maintenance work to keep more roads from being rated ‘red’ but that it does not have the granularity of data to know22
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Government response AI summary
The government accepted the recommendation to improve data on local road conditions, planning to collect additional data, make PAS 2161 reporting mandatory by Autumn 2025, and explore greater data-sharing through outcomes frameworks.
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HM Treasury
13
Conclusion
2nd Report - Condition and maintenance …
Accepted
The Department told us that it is looking to improve the quality of its data through the introduction of a new data standard — PAS 2161 — for local authorities to use in reporting the condition of local roads. The Department considers that the new standard will improve the granularity …
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The Department told us that it is looking to improve the quality of its data through the introduction of a new data standard — PAS 2161 — for local authorities to use in reporting the condition of local roads. The Department considers that the new standard will improve the granularity and robustness of data collected, with five categories now used to rate the condition of local roads rather than three, and the option for local authorities to use a wider variety of new technologies to gather consistent data. The Department currently requires local authorities to collect data using just one method, based on technology from the 1980s.23
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Government response AI summary
The government agrees with the committee's observation and is considering additional data collection, engaging to introduce PAS 2161 as a mandatory reporting requirement, and exploring how outcome frameworks can leverage greater data sharing.
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HM Treasury
14
Conclusion
2nd Report - Condition and maintenance …
Accepted
The Department confirmed that it had recently released the standard in September 2024 so that local authorities can use it from 2025–26 on a voluntary basis. The Department told us that it will not make its usage mandatory until the following year, 2026–27. This additional time is to allow 18 …
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The Department confirmed that it had recently released the standard in September 2024 so that local authorities can use it from 2025–26 on a voluntary basis. The Department told us that it will not make its usage mandatory until the following year, 2026–27. This additional time is to allow 18 C&AG’s Report, para 8 and Figure 6 19 Qq 10, 22, 24, 59 20 Q 59; C&AG’s Report, Figure 10 21 Qq 6, 11- 13 22 Qq 6, 18 23 Qq 6, 11-14 11 local authorities to prepare for the new standard as well as enable the Department to conduct data comparisons as it pilots different technologies for recording road conditions. 24
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Government response AI summary
The government agrees with the committee's observation regarding the new standard and is considering what additional data to collect for local highway networks. They have begun engagement with MHCLG to make the new PAS 2161 reporting requirements mandatory in England.
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HM Treasury
15
Conclusion
2nd Report - Condition and maintenance …
Accepted
The Department told us that it will not be asking local authorities to provide a wider range of information as part of the new standard to avoid increasing the administrative burden on local authorities.25 The Department confirmed that it will continue to collect information only on the condition of the …
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The Department told us that it will not be asking local authorities to provide a wider range of information as part of the new standard to avoid increasing the administrative burden on local authorities.25 The Department confirmed that it will continue to collect information only on the condition of the road surface, not on the condition of associated parts of the network such as cycleways, walkways and bridges. It will also not require local authorities to increase the proportion of the local road network they monitor each year.26
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Government response AI summary
The government agrees with the committee's observation and plans to consider additional data needs, engage with MHLG to make PAS 2161 reporting mandatory, and explore greater data sharing through outcome frameworks.
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HM Treasury
16
Conclusion
2nd Report - Condition and maintenance …
Accepted
The Department told us that it has to strike the balance between asking for more information and the increased burden of work for each local authority to provide that information, and that there are limits placed by the Ministry of Housing, Communities and Local Government. It acknowledged, however, that many …
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The Department told us that it has to strike the balance between asking for more information and the increased burden of work for each local authority to provide that information, and that there are limits placed by the Ministry of Housing, Communities and Local Government. It acknowledged, however, that many local authorities already collect more data than required by the Department, which they use for their own operational purposes.27 In addition, the Department noted that when evaluating one of its funding pots, local authorities had expressed a willingness to provide more data.28 The Department told us that the increase in reporting the proportion of the road network that falls into the five new categories is broadly supported by local authorities, but will be subject to formal approval by the Ministry of Housing, Communities and Local Government. The Department also confirmed that it is currently reviewing the broader requirements for local authority data collection on highway maintenance.29 24 Qq 6-8; Written evidence submitted by the Department for Transport dated 5 December 2024 ‘Local roads in England – PAS2161 Road Condition Monitoring Data Standard’ 25 Q 20 26 Qq 21, 26, 31 27 Qq 14, 18, 20-21, 23, 26, 31 28 Q 34 29 Written evidence submitted by the Department for Transport dated 05 December ‘Local roads in England – PAS2161 Road Condition Monitoring Data Standard’ 12 2 The Department’s funding to local authorities Complexity and short-term nature of funding arrangements
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Government response AI summary
The government agrees with the committee's observation and is actively considering additional data needs, engaging with MHLG to make PAS 2161 reporting mandatory, and exploring data-sharing through outcomes frameworks.
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HM Treasury
17
Conclusion
2nd Report - Condition and maintenance …
Accepted
During the past decade, funding for local roads has become more complex, with the Department providing 12 different funding pots for road maintenance. Each type of funding has different eligibility criteria; eight of the 12 are based on road network length; three require local authorities to bid for money; and …
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During the past decade, funding for local roads has become more complex, with the Department providing 12 different funding pots for road maintenance. Each type of funding has different eligibility criteria; eight of the 12 are based on road network length; three require local authorities to bid for money; and one is an incentive fund.30 The Local Councils Roads Innovation Group told us that there is a gap between those councils with the ability to apply for one-off funding pots and those without.31
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Government response AI summary
The government agrees with the committee's observation and intends to move to multi-year funding settlements and radically simplify funding by consolidating grants and local highways maintenance funding streams.
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HM Treasury
18
Conclusion
2nd Report - Condition and maintenance …
Accepted
We questioned the Department on the complexity of its current funding arrangements and how well they are currently working. The Department agreed that funding is not streamlined and acknowledged arguments for simplification, recognising that consolidating funding might allow local authorities to spend money more effectively.32
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We questioned the Department on the complexity of its current funding arrangements and how well they are currently working. The Department agreed that funding is not streamlined and acknowledged arguments for simplification, recognising that consolidating funding might allow local authorities to spend money more effectively.32
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Government response AI summary
The government agrees with the committee's implicit recommendation for funding simplification and intends to move to multi-year funding settlements for local government. They also plan to consolidate local highways maintenance funding streams into a single line to provide greater certainty and flexibility.
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HM Treasury
19
Recommendation
2nd Report - Condition and maintenance …
Accepted
The Department has largely provided its funding to most local authorities on an annual basis, instead of via longer-term settlements as in other areas of transport.33 For example, the strategic road network (motorways and some major A roads) is funded through one dedicated fund in five-year periods. Spending review settlements …
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The Department has largely provided its funding to most local authorities on an annual basis, instead of via longer-term settlements as in other areas of transport.33 For example, the strategic road network (motorways and some major A roads) is funded through one dedicated fund in five-year periods. Spending review settlements do include multi-year annual totals for local road maintenance, but the Department provides total funding to most local authorities on an annual basis.34 The Department acknowledges that giving certainty on funding has driven significant efficiencies and improvements to the way strategic roads have been managed.35 The Chartered Institution of 30 C&AG’s Report, para 2.4 31 LRE0014, Written submission, Local Councils Roads Innovation Group 32 Qq 41-42 33 C&AG’s Report, para 2.5 34 C&AG’s Report, para 10 35 Q 52 13 Highways & Transportation also told us that longer-term funding settlement would improve effectiveness in the management and maintenance of local roads.36
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Government response AI summary
The government accepted the recommendation to move to multi-year funding settlements for local authorities, with a target implementation by Summer 2025, and plans to simplify and consolidate local highways maintenance funding streams.
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HM Treasury
20
Conclusion
2nd Report - Condition and maintenance …
Accepted
We asked the Department when it will provide certainty over the number of years and amount of funding local authorities will receive. The Department told us that it would be a decision for HM Treasury and the Government during the next phase of the spending review to decide what time …
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We asked the Department when it will provide certainty over the number of years and amount of funding local authorities will receive. The Department told us that it would be a decision for HM Treasury and the Government during the next phase of the spending review to decide what time period funding would cover, and not the Department’s decision. 37
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Government response AI summary
The government agrees with the committee's implicit recommendation for funding certainty and intends to move to multi-year funding settlements for local government. They also plan to consolidate local highways maintenance funding streams into a single line to provide greater certainty and flexibility.
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HM Treasury
21
Conclusion
2nd Report - Condition and maintenance …
Accepted
Since 2020–21, the Department has provided local authorities with funding from the Potholes fund which, by the end of 2024–25, is expected to total £2.2 billion.38 Along with a further one off top up in 2023–24, specific pothole funding from the Department represented 40% of its capital funding to local …
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Since 2020–21, the Department has provided local authorities with funding from the Potholes fund which, by the end of 2024–25, is expected to total £2.2 billion.38 Along with a further one off top up in 2023–24, specific pothole funding from the Department represented 40% of its capital funding to local authorities in that year.39 In the Autumn Budget 2024 the Chancellor announced a further £500 million for road maintenance, aiming to fix a further one million potholes across England each year.40
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Government response AI summary
The government agrees with the committee's implied recommendation regarding funding and plans to commission a feasibility study in 2025 to develop a robust monitoring and evaluation framework for local highways maintenance funding. The framework is expected to be operational in 2026 to assess the effectiveness …
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HM Treasury
22
Conclusion
2nd Report - Condition and maintenance …
Accepted
However, potholes are just a symptom of poor road conditions and, as we heard, they are not necessarily being fixed properly or efficiently so money is just being wasted.41 For example, the AA told us that in its view too much is being spent on short-term reactive maintenance, including only …
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However, potholes are just a symptom of poor road conditions and, as we heard, they are not necessarily being fixed properly or efficiently so money is just being wasted.41 For example, the AA told us that in its view too much is being spent on short-term reactive maintenance, including only temporarily repairing potholes, relative to more proactive, permanent repairs which provide better value for money.42 The Road Haulage Association told us that planned works cost an average of 35% less than reactive repairs in England.43
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Government response AI summary
The government accepted the implicit recommendation to address inefficient spending, planning a feasibility study in 2025 to develop a monitoring and evaluation framework for local highways maintenance funding, aiming for operation in 2026 and regular evaluation reports by Spring 2027.
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HM Treasury
23
Conclusion
2nd Report - Condition and maintenance …
Accepted
The Department acknowledged that the succession of short-term funding allocations may have driven local authorities to be more reactive.44 However, the Department believes that local authorities treat the funding from the Department as a single source and are not concerned about the specific funding pot the money came from.45 The …
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The Department acknowledged that the succession of short-term funding allocations may have driven local authorities to be more reactive.44 However, the Department believes that local authorities treat the funding from the Department as a single source and are not concerned about the specific funding pot the money came from.45 The Department also told us that it is in the process of considering what future funding arrangements may look like as part of the spending review, in the context of integrated settlements for local authorities.46 36 LRE0002, Written submission by the Chartered Institution of Highways & Transportation 37 Q 71 38 C&AG’s Report, Figure 7 39 Q 62; C&AG’s Report Figure 7 40 Autumn Budget 2024, para 3.19 41 Q 62 42 LRE0004, Written evidence submitted by the AA 43 LRE0007, Written evidence submitted by The Road Haulage Association 44 Q 61 45 Qq 14, 41, 72 46 Qq 34-35 14 Basis for allocation of funds
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Government response AI summary
The government agrees with the committee's observation and plans to commission a feasibility study in 2025 to develop a robust monitoring and evaluation framework for local highways maintenance funding. The framework is expected to be operational in 2026 to assess funding effectiveness and impact on …
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HM Treasury
24
Conclusion
2nd Report - Condition and maintenance …
Deferred
Most of the Department’s funding to local authorities over the last decade has been through the eight funding pots that use road network length as the main basis for allocations. The mechanism for these pots uses simple data sets to allocate funding, weighted between road length (82.4%), the number of …
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Most of the Department’s funding to local authorities over the last decade has been through the eight funding pots that use road network length as the main basis for allocations. The mechanism for these pots uses simple data sets to allocate funding, weighted between road length (82.4%), the number of bridges (15.4%) and the number of lighting columns (2.2%) in each local authority.47 The Department explained that the allocation based on road length is then split equally into three parts, a third for A roads, a third on B roads and a third on C roads.48
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Government response AI summary
The government disagreed with the implicit recommendation to change the funding formula but agreed to review it for fairness, stating it cannot commit to changes until assessments are complete and the earliest implementation would be financial year 2026-27.
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HM Treasury
25
Recommendation
2nd Report - Condition and maintenance …
Deferred
The Department does not base funding allocation on other information, such as the condition of roads nor on factors that could have led to a deterioration in the condition of roads such as traffic volume, type of traffic or environmental factors.49 The Department told us that the current formula has …
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The Department does not base funding allocation on other information, such as the condition of roads nor on factors that could have led to a deterioration in the condition of roads such as traffic volume, type of traffic or environmental factors.49 The Department told us that the current formula has the benefits of being simple, objective and based on stable data as road lengths do not change very much over time. 50 It also uses road type as a proxy for traffic, directing more money to the roads which are used more heavily (A roads) than others.51
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Government response AI summary
The government disagrees with the committee's implied recommendation for immediate change but agrees to review the funding formula to better reflect road wear and tear. They state no changes can be committed to until feasibility is assessed, with the earliest implementation for financial year 2026-27.
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HM Treasury
26
Conclusion
2nd Report - Condition and maintenance …
Deferred
We asked the Department whether it considers where investment could have the greatest impact and why a factor such as traffic volume has not been included.52 The Department said that arguments for including other factors are often made, and that its last consultation on this subject was some time ago, …
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We asked the Department whether it considers where investment could have the greatest impact and why a factor such as traffic volume has not been included.52 The Department said that arguments for including other factors are often made, and that its last consultation on this subject was some time ago, but that this decision is one for Ministers. Reassessing funding allocation to include traffic volumes would be a large exercise which would benefit some local authorities, but reduce the funding of others, for example in rural areas.53 On taking flood risk into account, officials acknowledged they would consider whether differential impacts across the country from this risk should be reflected in any future revisions to funding allocation.54
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Government response AI summary
The government states it disagrees with the committee's recommendation (interpreted as an immediate call to include specific factors) but agrees to review the funding formula to better reflect conditions affecting wear and tear, with any changes taking effect from 2026-27 after feasibility assessment.
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HM Treasury
27
Recommendation
2nd Report - Condition and maintenance …
Accepted in Part
Just over half of local planning authorities in England charge a Community Infrastructure Levy (CIL) to fund local infrastructure for new developments.55 This levy can be used to increase the capacity of or to repair existing infrastructure, including transport, flood defences, schools, hospitals and 47 C&AG’s Report, paras 2.7-2.8 and …
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Just over half of local planning authorities in England charge a Community Infrastructure Levy (CIL) to fund local infrastructure for new developments.55 This levy can be used to increase the capacity of or to repair existing infrastructure, including transport, flood defences, schools, hospitals and 47 C&AG’s Report, paras 2.7-2.8 and Figure 9 48 Q 53 49 C&AG’s Report, para 2.8 50 Q 54 51 Q 53 52 Q 53 53 Q 53 54 Q 84 55 Written evidence submitted by Department for Transport 5 December 2024, ‘Local roads in England – Community Infrastructure Levy’ 15 other facilities, but the funds must be used for the purpose of supporting development rather than preserving the status quo.56 We asked the Department whether it had done any work understanding the level of unspent CIL funds across the country and whether this money could be spent on local roads.57 In its follow-up written submission, the Department acknowledged that some local authorities do have significant levels of unspent CIL funds; this may be because they have yet to allocate the money to a specific project, or because the local authority is building up funds for a major project. The Department undertook to engage closely with the Ministry of Housing, Communities and Local Government and local authorities on how CIL funds could be used to support transport investment.58 Evaluation
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Government response AI summary
The government agrees, noting existing guidance already covers CIL use for infrastructure. It will explore with MHLG how Infrastructure Funding Statements can be better communicated at a community level to increase awareness of CIL and its potential spending.
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HM Treasury
28
Conclusion
2nd Report - Condition and maintenance …
Accepted
The Department has evaluated only one of the 12 funding pots it has made available for local road maintenance over the last decade. The Department has also not evaluated the totality of the funding it has made available to local authorities for road maintenance, to assess whether it has led …
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The Department has evaluated only one of the 12 funding pots it has made available for local road maintenance over the last decade. The Department has also not evaluated the totality of the funding it has made available to local authorities for road maintenance, to assess whether it has led to an improvement in road conditions, or whether its assumptions about the benefits of local road maintenance have been borne out in practice.59 The Department told us that it was confident from its analysis that its local roads funding was good value for money, with its 2020 estimate suggesting £7 in economic benefits for every £1 spent, and potentially even higher at £9 from its more recent but less robust economic appraisal.60 However, the NAO report also states that this is the Department’s estimate of the benefits the funding could deliver, but it has not conducted any assessment of whether the benefits were actually delivered.61
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Government response AI summary
The government agrees and plans to commission a feasibility study in 2025 to inform a monitoring and evaluation framework for local highways maintenance funding, which will be developed in 2026 to generate regular evaluation reports.
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HM Treasury
29
Recommendation
2nd Report - Condition and maintenance …
Accepted
We asked the Department how it would know which funding mechanism was most effective without evaluation. The Department told us that it does not evaluate everything that it allocates to local authorities because it relies on them to exercise their statutory duties for local roads, and that local authorities do …
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We asked the Department how it would know which funding mechanism was most effective without evaluation. The Department told us that it does not evaluate everything that it allocates to local authorities because it relies on them to exercise their statutory duties for local roads, and that local authorities do not necessarily ringfence their funding from the Department. The Department also told us that it has identified lessons from its recent evaluation of the pothole fund, such as around long-term funding and consistent data collection. Overall, the Department believes that spending 56 Written evidence submitted by Department for Transport 5 December 2024, ‘Local roads in England – Community Infrastructure Levy’ 57 Q 63 58 Written evidence submitted by the Department for Transport dated 5 December 2024, ‘Local roads in England – Follow up on Community Infrastructure Levy’ 59 C&AG’s Report, para 1.11 60 Q 37; C&AG’s Report, para 1.12 61 C&AG’s Report, 1.12 16 on local roads is good value for money, and so is not an area that it is particularly concerned about. The Department acknowledged, however that it should look to do more evaluation, with the work on a revised Code of Practice to local authorities providing an opportunity to do so.62
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Government response AI summary
The government accepted the recommendation, planning a feasibility study in 2025 to inform the development of a monitoring and evaluation framework for local highways maintenance funding, which will be operational in 2026 and generate regular evaluation reports.
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HM Treasury
30
Conclusion
2nd Report - Condition and maintenance …
Accepted
The Department also told us that, as part of developing a new incentive funding scheme for local authorities on local road maintenance, it will be looking at learning from the previous scheme.63 In that scheme, the Department had made more money available to those local authorities that self-assessed that they …
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The Department also told us that, as part of developing a new incentive funding scheme for local authorities on local road maintenance, it will be looking at learning from the previous scheme.63 In that scheme, the Department had made more money available to those local authorities that self-assessed that they had implemented good asset management practices.64 The NAO report found that the Department did not carry out any checks on authority assessments to confirm whether the grades that authorities awarded themselves were reasonable, and the Department’s use of funding incentives no longer works as intended. The Department had also not evaluated this incentive funding scheme or assessed the impact it has had on local authorities’ approach to asset management.65 In its consideration of the new scheme, the Department told us that it will particularly reflect on its lack of auditing, with local authorities ‘marking their own homework’.66
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Government response AI summary
The government agrees with the committee's implied recommendation and will refresh the 'Code of Practice for Well Managed Highway Infrastructure' guidance. They are considering how local highway authorities might be required to comply with criteria in the revised guidance to qualify for funding, acknowledging it …
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HM Treasury
31
Recommendation
2nd Report - Condition and maintenance …
Not Addressed
We asked the Department whether it had completed any evaluations on the benefits that come from long-term funding arrangements such as Private Finance Initiative (PFI) schemes.67 The Department responded that the general view on transport funding was that longer-term funding of assets and infrastructure provided greater certainty and allowed delivery …
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We asked the Department whether it had completed any evaluations on the benefits that come from long-term funding arrangements such as Private Finance Initiative (PFI) schemes.67 The Department responded that the general view on transport funding was that longer-term funding of assets and infrastructure provided greater certainty and allowed delivery partners to plan, resource and execute work efficiently. However, the Department confirmed that it had not undertaken any evaluations itself, although it does collect data on PFI schemes as part of HM Treasury reporting requirements.68 The Department informed us that as the schemes were ongoing, evaluations had not been conducted despite these contracts not expected to end until 2034.69 It is imperative that whoever is managing the PFI project, normally the Local Authority or Highways England, regularly inspects theses roads to ensure the maintenance is up to date and that they will be returned in the condition specified in the contract. 62 Q 67 63 Q 56 64 C&AG’s Report, para 2.10 65 C&AG’s Report, paras 12, 2.11 66 Q 56 67 Q 48 68 Q 49; Written evidence submitted by the Department for Transport dated 5 December 2024, ‘Local roads in England – Follow up on Private Finance Initiatives’ 69 Qq 50-51; C&AG’s Report, Figure 3 Note 4 17 3 Support for local authorities Updating guidance
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Government response AI summary
The government agrees with the recommendation but outlines plans to commission a feasibility study for a monitoring and evaluation framework for *local highways maintenance funding*, rather than specifically addressing the imperative for regular PFI project inspections or PFI scheme evaluations.
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HM Treasury
32
Recommendation
2nd Report - Condition and maintenance …
Accepted
The Department is responsible for providing guidance to local authorities in England to help them run and maintain their road networks, but has not updated its guidance for several years.70 Such guidance has included good practice proactive maintenance to reduce the number of potholes, a Code of Practice on managing …
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The Department is responsible for providing guidance to local authorities in England to help them run and maintain their road networks, but has not updated its guidance for several years.70 Such guidance has included good practice proactive maintenance to reduce the number of potholes, a Code of Practice on managing highway infrastructure, and road repair guides. For example, the Department has not reviewed or updated the highways maintenance appraisal tool, which is based on assumptions that are almost 10 years old.71
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Government response AI summary
The government agrees to refresh the 'Code of Practice for Well Managed Highway Infrastructure' guidance, commissioning TRL to develop a scope for the updated guidance, which is estimated to take 12-18 months. They will also consider linking compliance with the revised guidance to funding qualification.
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HM Treasury
33
Recommendation
2nd Report - Condition and maintenance …
Accepted
The Department told us that Ministers are considering a review of the Code of Practice as it considers there to be value in doing so, even though it will be major task to update the more than 260-page document. The Department acknowledged that there are gaps in the current Code …
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The Department told us that Ministers are considering a review of the Code of Practice as it considers there to be value in doing so, even though it will be major task to update the more than 260-page document. The Department acknowledged that there are gaps in the current Code of Practice that would need to be addressed, including in areas such as new technologies for assessing conditions and repairing potholes and climate adaptation.72 For example, the Road Surface Treatments Association set out to us the importance of road drainage systems to reduce road deterioration, given the increased rainfall from climate change.73 However, the Department also highlighted to us the work local authorities already do to share best practice between them as well as the work the Department is doing to support local authorities on responding to climate change.74
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Government response AI summary
The government accepted the recommendation to refresh the Code of Practice by September 2026, commissioning TRL to develop a scope for updated guidance, including environmental matters and potential compliance requirements for local authorities.
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HM Treasury
34
Recommendation
2nd Report - Condition and maintenance …
Accepted
We questioned the Department on other challenges that local authorities are facing where updated guidance from the Department would be helpful. On active travel the Government has set a target of 50% of all short journeys being made by walking or cycling by 2030. The Department acknowledged that poor-quality infrastructure …
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We questioned the Department on other challenges that local authorities are facing where updated guidance from the Department would be helpful. On active travel the Government has set a target of 50% of all short journeys being made by walking or cycling by 2030. The Department acknowledged that poor-quality infrastructure is a key barrier to achieve this and would be looking to update its Code of Practice with a greater 70 C&AG’s Report, para 3 and 15 71 C&AG’s Report, 3.2 72 Qq 56-58 73 LRE0011, Written evidence submitted by The Road Surface Treatments Association (RSTA) Ltd 74 Qq 58, 84 18 emphasis on footway maintenance.75 The Department also told us that all aspects of road safety will be considered as part of its development of a road safety strategy, recognising our example of the use of LED street lighting for energy efficiency but which can make pedestrians and cyclists feel less safe using the roads.76 Future challenges
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Government response AI summary
The government accepted the recommendation to refresh the Code of Practice by September 2026, commissioning TRL to develop a scope for updated guidance, which will include addressing gaps such as active travel infrastructure and road safety.
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HM Treasury
35
Recommendation
2nd Report - Condition and maintenance …
Accepted
We asked the Department about the impact of heavier electric vehicles on road infrastructure. The Department told us that main roads are built to withstand a maximum vehicle weight (gross vehicle weight) of 44 tonnes, and although unclassified roads are built to a wide range of differing standards, the impact …
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We asked the Department about the impact of heavier electric vehicles on road infrastructure. The Department told us that main roads are built to withstand a maximum vehicle weight (gross vehicle weight) of 44 tonnes, and although unclassified roads are built to a wide range of differing standards, the impact will not be significant with the weight of an electric car still less than a lorry. However, it has recognised that the risks are more related to electric buses and heavy good vehicles (HGVs). Given the maximum weight roads and bridges can take, and the heavier weight of electric-powered HGVs, this may reduce the payload HGVs can take and the sector is campaigning to allow heavier vehicles on the road to compensate. The Department told us that no decisions have been made about whether to increase the maximum weight that road infrastructure is expected to support and, if it does increase, how much that could cost to implement particularly in relation to bridges.77
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Government response AI summary
The government accepted the recommendation to refresh the Code of Practice by September 2026, commissioning TRL to scope updated guidance that will implicitly consider the impact of heavier electric vehicles on road infrastructure.
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HM Treasury
36
Recommendation
2nd Report - Condition and maintenance …
Accepted
We also asked the Department about the condition local roads would need to be in to support the introduction of autonomous vehicles from 2026. The Department recognised that there will be challenges. For example, one of the semi-autonomous technologies, already licensed for use on the strategic road network, require road …
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We also asked the Department about the condition local roads would need to be in to support the introduction of autonomous vehicles from 2026. The Department recognised that there will be challenges. For example, one of the semi-autonomous technologies, already licensed for use on the strategic road network, require road line markings to be of a sufficient standard so that they can be detected by its autonomous vehicles. The Department told us that National Highways is currently exploring the impacts of autonomous vehicles on road layout, lane markings and roadwork designs and maintenance across the strategic road network. 78
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Government response AI summary
The government accepted the recommendation to refresh the Code of Practice by September 2026, commissioning TRL to scope updated guidance that will consider the challenges posed by autonomous vehicles and the required road infrastructure standards.
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HM Treasury
37
Recommendation
2nd Report - Condition and maintenance …
Accepted
However, the Department also set out that autonomous vehicle technology would need to be capable of safely operating using existing highway infrastructure and so does not expect to make any immediate changes to road maintenance practices. The Department told us that government 75 Qq 21, 27, 93; C&AG’s Report, Figure …
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However, the Department also set out that autonomous vehicle technology would need to be capable of safely operating using existing highway infrastructure and so does not expect to make any immediate changes to road maintenance practices. The Department told us that government 75 Qq 21, 27, 93; C&AG’s Report, Figure 12 76 Q 94 77 Qq 84, 88 78 Qq 86 - 89; Written evidence, submitted by the Department for Transport dated 5 December 2024, ‘Local roads – Autonomous Vehicles’ 19 expects to set out statutory guidance on autonomous vehicles in the second half of 2027, as part of laying secondary legislation covering the main autonomous vehicle regulations. 79 79 Qq 86–89; Written evidence, submitted by the Department for Transport dated 5 December 2024, ‘Local roads – Autonomous Vehicles’ 20
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Government response AI summary
The government accepted the recommendation to refresh the Code of Practice by September 2026, commissioning TRL to scope updated guidance that will consider the implications of autonomous vehicle technology and future statutory guidance on road maintenance practices.
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HM Treasury