Source · Select Committees · Public Accounts Committee
Recommendation 25
25
Deferred
Road funding allocation formula does not consider road condition, traffic volume, or environmental factors.
Recommendation
The Department does not base funding allocation on other information, such as the condition of roads nor on factors that could have led to a deterioration in the condition of roads such as traffic volume, type of traffic or environmental factors.49 The Department told us that the current formula has the benefits of being simple, objective and based on stable data as road lengths do not change very much over time. 50 It also uses road type as a proxy for traffic, directing more money to the roads which are used more heavily (A roads) than others.51
Government Response Summary
The government disagrees with the committee's implied recommendation for immediate change but agrees to review the funding formula to better reflect road wear and tear. They state no changes can be committed to until feasibility is assessed, with the earliest implementation for financial year 2026-27.
Government Response
Deferred
HM Government
Deferred
4.1 The government disagrees with the Committee’s recommendation. 4.2 The government agrees to review the funding formula that it uses to distribute capital funding to local highways authorities to see whether it can be adjusted to make it a fairer reflection of the conditions that affect the wear and tear of local roads. However, the government cannot commit to any changes to the allocation methodology until each option has been assessed for feasibility and deliverability, in line with the normal policy making process. The government would also expect to engage with local highway authorities about any methodology to understand how any changes might impact on their services. 4.3 Local highway authorities have already had their capital funding set out for the financial year 2025-26 so the earliest date any changes to the funding formula could be made would be to align with the start of financial year 2026-27.