Source · Select Committees · Public Accounts Committee
Recommendation 7
7
Accepted
Department lacks clear outcomes and oversight for non-ringfenced local road maintenance funding.
Conclusion
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
Government Response 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.
Government Response
Accepted
HM Government
Accepted
1.1 The government agrees with the Committee’s recommendation. Target implementation date: April 2026 1.2 The government recognises that clarity about responsibilities for highways maintenance is a vital part of ensuring the devolution process is successful. The department for Transport will publish a short document on Gov.UK summarising the legal responsibilities that government and local authorities have with regard to highways maintenance and the expectations that government has of local authorities with regard to following best practice. 1.3 The department is also considering how it can use outcome frameworks to set clear expectations in relation to highways maintenance. For the financial year 2025-26, this includes setting targets (e.g. against the condition of local roads) in frameworks underpinning integrated settlements where relevant funding is being consolidated (e.g. for Greater Manchester Combined Authority where City Region Sustainable Transport Settlements and additional highways maintenance incentive allocation is consolidated). These targets will be extended to other integrated settlement recipients in future financial years when relevant funding is consolidated (e.g. for West Midlands Combined Authority in financial year 2026-27). 1.4 The department is working to set transport outcomes for all other Local Transport Authorities that will not receive integrated settlements, from financial year 2026-27. This undermines the department’s commitment to simplify funding, enabling Local Transport Authorities to better spend funding according to their local priorities and avoid unnecessary bureaucracy. As with the integrated settlement recipients, the department expect the outcomes for all Local Transport Authorities to include aspects around the condition of local highways, for example.