Spending Review must unlock long-term local road funding, says CIHT

A new policy briefing showing the clear benefits of longer-term funding settlements for local roads in England is now out from the Chartered Institution of Highways and Transportation (CIHT).

Published ahead of the Spending Review on 11 June – the first multi-year Spending Review since 2021 – the briefing says the review presents an important opportunity to shift the standard of funding for maintenance and management of England’s local roads, to a more strategic, long-term model.

Local roads remain subject to short-term funding mechanisms – which the CIHT says has significantly hindered effective asset management and contributed to a growing maintenance backlog. Recent research by the RAC found that only 3% of England’s local road network was maintained last year while the 2025 Annual Local Authority Road Maintenance (ALARM) survey from the Asphalt Industry Alliance (AIA) revealed that the repair backlog for ‘pothole-plagued’ local roads in England and Wales has now reached almost £17bn.

Sue Percy, chief executive at CIHT, said: “Five-year settlements already exist for the Strategic Road Network (SRN) and the rail sector, backed by industry consensus, which has demonstrated tangible benefits in terms of efficiency, planning and delivery.

“Our ongoing research (to be released in full later this year) shows that by moving to a five-year funding settlement, there is potential to unlock 5-10% of efficiency savings, which equate to approx. £1bn-£2.2bn. These significant savings can be reinvested back into the highway maintenance budgets of local authorities, providing more capacity for repairs and renewal, helping to stem the continued deterioration of a vital national asset.”

CIHT added that implementing five-year funding settlements would deliver an opportunity for savings and reinvestment, which would directly support the Government’s mission to drive economic growth.

The trade body also noted that the potential savings produced by implementing five-year funding settlements could contribute to advancing a range of broader governmental policy objectives – including progress toward net zero, greater climate resilience, workforce development, increased social value and accelerated technological innovation.

A copy of the policy report and more information is available by emailing communications@ciht.org.uk