'Unpredictable' roads maintenance funding for local highways authorities is damaging the public value of works, auditors have warned.
A report from the National Audit Office (NAO) published today claims ‘stop-start funding’ for maintenance might raise costs in the long term as tasks such as routine road clearance fall by the wayside.
Recent injections in capital funding have offset budget cuts for the Highway Agency from the 19% announced in the 2010 Spending Review to only 7%.
However, the NAO said the ‘lack of predictability’ surrounding funding has seen local highways authorities carrying out fewer ‘essential’ tasks such as clearing road gullies. In addition, road maintenance contractors cite ‘unpredictable income’ as a disincentive for them to invest in efficiency improvements.
The current pattern of funding and the need to spend cash within the financial year means most road maintenance is carried out between September and March. However, the NAO pointed out that cold wet conditions and short daylight hours mean this is a less efficient period to undertake such work.
Plans announced in this week’s Queen’s Speech would see the Highway’s Agency turned into a limited company wholly owned by the government with six-year funding certainty.
‘The DfT understands the threat posed to road maintenance from the uncertainty of funding, but establishing a new government company to address the problems will not, in itself, be enough,’ Amyas Morse, head of the NAO said.
‘The Department should work with the Treasury and the Department for Communities and Local Government to address the unpredictability of funding for both the strategic and local road networks.'
‘Stop/start funding makes long-term planning more difficult for highways authorities,’ Morse added.
Responding to the report, a DfT spokesperson said: ‘The reformed Highways Agency will be more transparent, accountable and able to provide stable funding over longer periods to drive down costs and increase efficiency.
‘All in all, we are providing councils in England with more than £10bn from 2010 to 2021 for local highway maintenance, with clear guidance on ensuring it is used efficiently.’
