Ministers have confirmed an extra £500m for local road maintenance in England next year, but a quarter of the cash will be held back on the basis of an incentive process that has yet to be worked out.

The Department for Transport (DfT) said highways maintenance block formula allocations for 2025-26 would total £1.6bn.

It announced today that regional allocations would amount to: 

• over £327m for the north west, north east and Yorkshire and Humber
• over £372m for the East Midlands and West Midlands
• over £244m for the East of England
• over £322m for local authorities in the south east and London
• over £300m for local authorities in the south west

Eight mayoral combined authorities are receiving highway maintenance funding bundled with City Region Sustainable Transport Settlements between 2022-23 and 2026-27.

Transport secretary Heidi Alexander claimed that every area of England would get extra cash to tackle the problem of potholes ‘once and for all’.

However, the announcement still leaves councils with some uncertainty over how much money they will receive next year and what they need to do to qualify for full incentive funding.

The DfT said ‘built-in incentives’ mean that 25% of the extra cash for highway authorities is being held back until authorities have shown that they are spending the money wisely, collecting the right data and delivering proactive maintenance before potholes start to form.

Despite this, the department effectively conceded it has not agreed how this will be administered and work in practice, stating the details ‘will be shared with local authorities in due course’.

Previous incentive processes were based around either competitive bidding for funding pots, which the Government has moved away from under its devolution agenda, or the self-assessment process, which the DfT suggested had run its course and would need a revamp.

The Local Government Association suggested that this would make it harder for councils to engage in long-term planning and preventative maintenance.

Transport spokesperson Adam Hug said: ‘This extra £500m for local roads is helpful, but we would ask government to reconsider its decision to hold back a quarter of this funding, in order to give councils the greater certainty they need.

‘Councils already spend considerably more on maintaining their highways than what they receive from central government.

‘Fully funding councils will enable them to far more effectively plan for and invest in preventative treatments which keep surfaces in better condition for longer and prevent potholes, which are more expensive to repair.’

Motoring organisations welcomed the announcement. AA president Edmund King said: ‘We urge councils to focus on permanent and innovative repairs rather than adopting a patch and run approach.

‘Better maintenance of the road network is the number one concern of drivers as damage costs a fortune and potholes can be fatal for those on two wheels.’

The DfT also confirmed the previous government's plans for at least 50% of surplus lane rental funds to be reinvested into highway maintenance.

It added that it is consulting on devolving powers to approve lane rental schemes, which are currently with the Secretary of State, to local mayors.

Ms Alexander also confirmed a clampdown on disruptive street works, 'doubling fixed penalty notices for utility companies who fail to comply with rules and extending charges for street works that run into the weekend'.

This article first appeared on Highways.