Select committee: Public Accounts Committee
Conclusion 4
2nd Report - Condition and maintenance of Local Roads in England
Published 17 Jan 2025
Addressed to HM Treasury
Public Accounts Committee Condition and maintenance of Local Roads in England All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
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.
From: Public Accounts Committee, 2nd Report - Condition and maintenance of Local Roads in England (HC 349), 17 January 2025
Government response
Latest Treasury Minutes progress report to the Committee of Public Accounts on the Second Report of Session 2024-26
The government responded to the whole report on 4 June 2026.
Treasury minutes: Government response to the Committee of Public Accounts on the Second report from Session 2024-25
Published 6 May 2025.
Summary written by Accountability Index from the government's response. It is not the government's own words.The government agrees with most of the Committee's recommendations, disagrees with the recommendation to revise the funding allocation method (while agreeing to review the funding formula), and gives target implementation dates for each agreed item.
- On funding allocation, the government disagrees with the recommendation but "agrees to review the funding formula"; it "cannot commit to any changes" until options are assessed for feasibility and deliverability, and the earliest any change could take effect is the start of financial year 2026-27.
- On funding certainty, the government agrees and "intends to move to multi-year funding settlements in future", and the department "intends to consolidate" local highways maintenance funding streams so authorities receive one funding line only.
- On data and responsibilities, the government agrees; the department will publish a short Gov.UK document summarising legal responsibilities (target April 2026), and has begun engagement on making reporting against PAS 2161 "a mandatory requirement in England".
- On the Code of Practice, the government agrees it should be refreshed (target September 2026) and will "consider further whether, and if so how" authorities might be required to follow best practice to qualify for funding; it says linking this to the incentive element directly is not "feasible".