Select committee: Public Accounts Committee

Conclusion 24

2nd Report - Condition and maintenance of Local Roads in England Published 17 Jan 2025 Addressed to HM Treasury
Conclusion (the committee's words)
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

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.

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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".

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