Councils in England will receive £1.6bn in funding this year to help repair around seven million potholes in 2025 and be given greater power to clamp down on disruptive street works.

The landmark investment represents an increase of nearly 50% on local road maintenance funding from last year and goes well beyond the government’s manifesto pledge.

The funding boost comes as figures from the RAC show drivers encounter an average of six potholes per mile in England and Wales, with the cost of pothole damage to vehicles estimated at around £500 on average.

The funding also has built-in incentives for councils, with 25% of this uplift held back until authorities have shown that they are delivering.

Transport Secretary, Heidi Alexander, said: “This government is firmly on the side of drivers. Every area of England will get extra cash to tackle this problem once and for all. We have gone beyond our manifesto commitment to back motorists and help raise living standards in every part of the country.”

In addition, at least 50% of surplus lane rental funds will be reinvested into highway maintenance, so that even more roads can be improved. Lane rental schemes allow local highway authorities to charge companies for the time that street and road works occupy the road. 

DfT is also consulting on whether to give local mayors the powers to approve lane rental schemes, rather than the Secretary of State, in a bid to speed up the delivery of more lane rental schemes and put power back into local hands. 

On top of this funding, the DfT has also announced 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.

RAC head of policy, Simon Williams, welcomed the move. He said: “This is the biggest one-off road maintenance funding settlement councils in England have ever been given, so we have high hopes it’s the turning point that ends the degradation of our roads and finally delivers fit-for-purpose, smooth surfaces for drivers and all other road users. 

“What’s particularly positive is that this announcement is not just about giving councils money to fix dangerous potholes, it comes with the important caveat of using the money wisely by carrying out preventative maintenance to stop more potholes appearing in the future.

“It’s also good to see the government proactively encouraging drivers to report potholes, requiring councils to collect the right data to capture the true state of their road networks and incentivising authorities that use the money to good effect.

Edmund King, AA president, also welcomed the investment but called for councils to improve the way they repair potholes. He said: “Drivers and riders across England will be pleased to see this significant cash injection into smoothing out the local road network. With most journeys starting and ending on local roads, it is vital to restore the structural integrity of the streets we live on.

“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. 

He continued: “Clamping down on poor works carried out by utility companies and overrunning roadworks is sorely needed, and we are pleased to see action being taken here. Widening lane rental approval to local mayors should reduce red tape and we hope it means more roads can be opened in first class condition.”