“Unusable” roads costing SMEs £5bn per year

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According to the Local Government Association (LGA), which represents more than 370 councils across England and Wales, the backlog of repairs needed on UK roads is growing longer, now estimated at £10.5bn, with one-in-five roads classed as being in “poor condition”.



Alongside decades of underinvestment from government, the key factor is recent freezing weather and flooding, which has caused an estimated £1bn damage. Further severe weather could now lead to a tipping point in many areas where roads will become so damaged they will have to close.

The LGA has written to Danny Alexander, Chief Secretary to the Treasury, asking him to begin this process in next week's Spending Review. 
This will not only allow councils to make roads safer and save billions of pounds in the long term – reactive repairs are 20 times more expensive than laying a good quality surface resistant to flood and ice damage – but also boost jobs and growth in the short-term.

A YouGov survey from January showed the average cost to SMEs of poor roads was £13,600 a year in reduced productivity, increased fuel consumption, damage to vehicles and delayed deliveries. This equates to £5bn across the sector. A separate survey by the Federation of Small Business found half of its respondents had lost up to £5,000 a year, with 12% losing up to £20,000.

Cllr Peter Box, chair of the LGA's Economy and Transport Board, said: ‘Despite their best efforts many councils are trapped in a false economy of reactive repairs while managing a spiralling compensation bill, all the time praying it doesn't flood or freeze. Government cutting funding for roads is a very high risk strategy as the longer you keep simply patching up a deteriorating surface the more vulnerable it becomes to severe weather. Unless something changes we risk swathes of Britain's road network becoming dangerously strewn with potholes or collapsing completely.



‘Councils need increased and consistent funding to invest in the widespread resurfacing projects which our network desperately needs if we're to see a long-term improvement. We know we're in very tough economic times, but there are several potential sources of funding government could explore.



‘Redirecting funding into road resurfacing would also offer an instant boost to growth. Thousands of jobs in the construction and supply sector would be created immediately and there would be many mid-term economic benefits by reducing the cost to business caused by the current state of many roads.’

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Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.