Source · Select Committees · Public Accounts Committee
Recommendation 26
26
Deferred
Department acknowledges arguments for re-evaluating funding allocation, considering flood risk impacts.
Conclusion
We asked the Department whether it considers where investment could have the greatest impact and why a factor such as traffic volume has not been included.52 The Department said that arguments for including other factors are often made, and that its last consultation on this subject was some time ago, but that this decision is one for Ministers. Reassessing funding allocation to include traffic volumes would be a large exercise which would benefit some local authorities, but reduce the funding of others, for example in rural areas.53 On taking flood risk into account, officials acknowledged they would consider whether differential impacts across the country from this risk should be reflected in any future revisions to funding allocation.54
Government Response Summary
The government states it disagrees with the committee's recommendation (interpreted as an immediate call to include specific factors) but agrees to review the funding formula to better reflect conditions affecting wear and tear, with any changes taking effect from 2026-27 after feasibility assessment.
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.