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Revise local road funding allocation considering usage, environment, and explore Community Infrastructure Levy use.

Conclusion
The Department does not allocate funding to local authorities for the maintenance of local roads according to where it is most needed. The Department provides most of its funding to local authorities based on road length, number of bridges, and number of lighting columns in a local authority. It does not, however, take into account traffic volumes or underlying road condition. Nor does it include other factors such as local 5 environmental conditions, for example whether a road is prone to flooding, and the additional wear and tear that would arise. The Department has also not explored with the Ministry of Housing, Communities and Local Government whether local authorities that charge a Community Infrastructure Levy money on new developments, may be permitted to spend this money on local road maintenance. recommendation a. As part of the next phase of the Spending Review the Department should revise the way it allocates funding to local authorities ensuring that funding also reflects the expected wear and tear of local roads due to the level of usage and local environmental conditions. b. The Department should also work with the Ministry for Housing, Communities and Local Government to explore the scope for local authorities to use surplus Community Infrastructure Levy funding on local road maintenance.
Government Response

A response document is linked to this report, dated 6 May 2025. Response attribution to this conclusion has not been verified. Read the response document.

Addressee Bodies
HM Treasury
Timeline
Recommendation age 1.7 yrs
Report published 17 Jan 2025