Question to the Department for Transport:

To ask the Secretary of State for Transport, whether she has made an assessment of the potential merits of reforming local roads funding.

The Government has reformed local roads funding by increasing the available funding, providing greater funding certainty to local highway authorities, and introducing new performance based incentives and a rating system to ensure this investment is used effectively and in line with best practice in highways maintenance.

At the Autumn Budget, the Government confirmed a record £7.3 billion for local highway maintenance over the next four years. By providing long-term funding certainty, local highway authorities will be able to better plan ahead and move away from expensive and reactive repairs and to instead invest in proactive and preventative maintenance, which keeps roads in good condition for longer and prevents potholes from forming in the first place.

Earlier in January, the Department introduced a new traffic light rating system for local highway authorities. 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. As in the 2025/26 financial year, a proportion of highways maintenance funding will continue to be allocated as incentive funding linked to authorities’ transparency and performance.