Question to the Department for Transport:

To ask the Secretary of State for Transport, how her Department assesses how effectively local highway authorities are spending pothole funding.

The Department assesses how effectively local highway authorities are spending highways maintenance funding through a combination of transparency requirements, incentive funding and rating mechanisms, enabling the provision of targeted support. The Department published a new traffic light rating system for local highway authorities on 11 January. Under this system, all local highway authorities in England received a red, amber or green rating based on the condition of their roads, how much they spend to maintain their roads, and whether they do so using best practice. These ratings are designed to promote good asset management and encourage a preventative approach to highways maintenance.

For the 2025/26 financial year, 25% of the £500 million funding increase was contingent upon local highway authorities demonstrating how they were complying with certain criteria aimed at driving best practice and improvement of highways maintenance. This included publishing transparency reports setting out how they are spending their highways maintenance funding and how they are complying with best practice, including preventative maintenance.

Looking ahead, a proportion of highways maintenance funding will continue to be allocated as incentive funding, linked to authorities’ transparency and performance, to support continuous improvement across the network. The Department is also providing dedicated support to authorities, including a peer review offer for red-rated authorities. This is alongside the extension of Live Labs 2, the Department’s highways innovation programme.