Source · Select Committees · Public Accounts Committee
Recommendation 19
19
Accepted
Local road maintenance funding predominantly provided annually, lacking longer-term settlements.
Recommendation
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
Government Response 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.
Government Response
Accepted
HM Government
Accepted
3.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2025 3.2 Long term certainty is determined by the length of the settlement set out by a Spending Review. 3.3 The government is resetting the relationship with local government. The government intends to move to multi-year funding settlements in future, to provide long-term funding certainty for local government. The government has also set out plans to radically simplify the funding paid out to the sector – consolidating grants into the settlement wherever possible. This will give local authorities greater certainty and freedom to deliver their priorities. 3.4 The department also intends to consolidate local highways maintenance funding streams for those authorities who receive them, so that they receive one funding line only. In addition, those authorities in receipt of City Region Sustainable Transport Settlements (CRSTS) have their highway maintenance funding consolidated, further reducing the number of funding streams and providing greater flexibility in how mayoral combined authorities allocate funding.