Councils risk losing a third in England pothole rules

From today (14 April 2026), the government has set tougher rules for how councils in England spend pothole and local road maintenance money. If a local highway authority cannot show it is looking after its roads effectively, up to a third of next year’s allocation from the £1.6 billion local roads pot could be withheld, according to the Department for Transport.

Let’s quickly cover how local road funding works. Most A, B and residential streets are managed by your local highway authority (county, city or borough). Central government sends a dedicated maintenance pot each year, which councils can top up from their own budgets. Under the new rules, that central cash must be spent purely on road maintenance, and councils now need to publish clear reports and longer‑term plans so you can see where the money goes.

To enforce the changes, ministers are holding back £525 million across England until councils demonstrate that funds are used as intended and performance is improving. Think of it as conditional funding: show the work, then get the cash. That includes better training for highways teams and public reporting. Money that is held back can be released once councils evidence progress.

There’s also a new scoreboard. All 154 local highway authorities are being graded red, amber or green based on current road condition and how effectively money is spent. Thirteen red‑rated councils will receive targeted support worth £300,000 over two years to raise standards. A public map lets you check how your area is performing and compare it with neighbours.

What this means for you is accountability you can track. If your council proves it’s fixing roads properly, funding should keep flowing and programmes can be planned over several years. If it cannot, a chunk of next year’s grant may be lost, which could slow local repairs. Ministers say this pressure should deliver visibly smoother, safer roads for drivers, cyclists and bus users.

Why do potholes keep coming back even after repairs? Water works into tiny cracks, winter freeze–thaw widens them, and heavy traffic breaks the edges. Utility trenches and short‑term patches can leave weak joints. When budgets are tight, councils often chase emergencies instead of preventing them, which is why roads can feel stuck in a repair‑and‑repeat loop.

The policy aims to shift effort from quick patches to prevention. Industry groups back that direction: the RAC welcomes a focus on planned maintenance rather than firefighting, while the AA says full resurfacing, where affordable, beats endless patching for long‑lasting results. Both say multi‑year certainty helps councils book crews, materials and machinery at the right time of year.

How much could your area stand to lose? The threshold is up to one third of next year’s allocation. As a rule of thumb, a council expecting, say, £18 million from central maintenance grants could forfeit around £6 million if it fails to show performance. Exact figures vary by authority, but the message is clear: no evidence, less money.

Here’s how you can follow the money from your street. Read the council’s maintenance plan when it’s published, look for how often they resurface whole stretches versus patch potholes, and check their rating on the Department for Transport’s public map. When you report a defect, note the reference number and response time; the new transparency push is designed to make these timelines visible.

Quick recap of the key facts. The Department for Transport is holding back £525 million until councils show progress. Authorities that fall short risk up to a third of next year’s share from the £1.6 billion pot. All 154 local highway authorities are on a red‑amber‑green scoreboard, with 13 red‑rated councils getting expert support worth £300,000 over two years. The government also points to record £7.3 billion for local roads and a new multi‑year approach so councils can plan with more certainty.

What to watch next. Over the coming months, councils will publish spending reports, training plans and longer‑term maintenance programmes. Expect more preventative treatments such as surface dressing alongside faster fixes for the worst defects. We’ll keep tracking the data, but the real test is simple: do your school‑run, commute or cycle routes feel smoother by the end of the year?