Source · Select Committees · Public Accounts Committee
Recommendation 23
23
Accepted
Short-term funding allocations may drive reactive maintenance despite single funding source perception.
Conclusion
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
Government Response 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 road conditions.
Government Response
Accepted
HM Government
Accepted
5.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2027 5.2 To ensure the development of a robust and proportionate monitoring and evaluation framework, the department plans to commission a feasibility study in 2025 to understand the current state of evidence, evidence gaps and data collection mechanisms in local authorities. This will then help scope evaluation questions and identify appropriate approaches for monitoring and evaluating the department’s local highways maintenance funding. 5.3 Following the completion of the feasibility study and dependent on its recommendations, a monitoring and evaluation framework will be developed for operation in 2026, with the aim of generating regular evaluation reports, to help understand the effectiveness and impact of the department’s capital funding support for local highways authorities. 5.4 A key part of the monitoring and evaluation framework will be to utilise national data collection mechanisms to understand the effects of the funding on road condition. This could include, for example, data on local roads maintenance gathered through the new Integrated Settlement outcomes framework for Mayoral Combined Authorities. It could also utilise any other data shared by local highways authorities to access their full funding in financial year 2025-26, part of which is being held back until local authorities can prove that they are meeting certain criteria. The department will engage with the Ministry for Housing, Communities and Local government during the design and delivery of the evaluation given their responsibility for the overall funding system for local government.