Councils Face Funding Cuts Over Poor Pothole Repairs

Local authorities in England could lose up to a third of their road maintenance funding if they fail to properly address potholes under new government rules.

The measures form part of stricter requirements on how councils use their share of a £1.6 billion highways budget. If standards are not met, up to £525 million could be withheld unless authorities can demonstrate that essential maintenance work is being carried out.

Councils will also be required to publish detailed reports on how funding is spent, ensuring it is used specifically for maintaining and repairing local roads.

Rising Cost for Drivers

Potholes continue to have a significant financial impact on motorists, with government figures estimating that damage can cost drivers around £500 in avoidable repairs.

At the same time, new data from the RAC suggests the problem is worsening. Heavy rainfall at the start of 2026 led to a surge in pothole-related breakdowns, particularly as defects became hidden beneath standing water.

In February alone, the RAC recorded an average of 225 pothole-related breakdown reports per day—more than three times the daily figure for the same month in 2025. Overall, 6,290 incidents were logged in February, compared with 1,842 a year earlier.

The highest daily total reached 336 reports, significantly exceeding last year’s peak.

January figures also showed a sharp increase, with more than 5,100 reports recorded—bringing the total for the first two months of 2026 to over 11,000 incidents.

Government Warning to Councils

Roads and Buses Minister Simon Lightwood said the new approach sends a clear message to local authorities.

He warned that councils failing to maintain their roads adequately risk losing a significant portion of their funding, reinforcing the government’s push for improved standards and greater accountability.

The new measures aim to ensure that investment in local roads delivers tangible improvements, while addressing growing concerns over the condition of England’s road network.