Spending Review: £6bn for local roads will not fill funding gap, says LGA

By / 11 years ago / Latest News / No Comments

In yesterday’s announcement, Treasury Minister Danny Alexander outlined over £100bn of public investment in infrastructure projects to 2020, including £28bn which will be used in enhancements and maintenance of national and local roads until 2020. This will include adding extra lanes to the busiest motorways and will address some of the most congested parts of the network including the £1.5bn A14 scheme between Huntingdon and Cambridge.

Nearly £6bn of the funding will be allocated to help local authorities repair the local road network and over £4 billion to enable the Highways Agency to resurface the vast majority of the national network by 2020-21.

In a statement, Mr Alexander said: ‘Government will commit to the biggest programme of investment in roads since the 1970s. By 2020 to 2021 the government plans to triple the money spent on roads compared to 2013. This includes £6bn to help local authorities repair the local road network.’

Commenting on the news, Sir Merrick Cockell, chairman of the Local Government Association, said yesterday (27th June): ‘The LGA has long called for greater funding for roads maintenance so today's commitment to improving the network is a positive step forward. However, there is still a very long way to go to bring the nation's roads up to scratch.

‘The £6bn for local roads maintenance over the six years from 2015/16 equates to an extra £300m a year on top of the £700 million councils were expecting based on 2014/15 funding projections. Last year councils were £800m short of what they needed so, though helpful, this new money certainly doesn't bridge the overall funding gap.

‘Despite their best efforts, many councils have been trapped in a false economy of patching up potholes for many years. It's unlikely this new money will significantly change this situation and the proper resurfacing projects needed will continue to be limited.

‘Last year's flooding caused £338m damage to roads and the severe winter of 2010/11 cost councils £600m. The current deteriorated state of many roads mean they are becoming increasingly susceptible to severe conditions. Even with today's positive announcement large swaths of our network will still remain at the mercy of the weather.’

Meanwhile PricewaterhouseCoopers also greeted the news but UK head of transportation & logistics Coolin Desai added: ‘The Government has laid out an ambitious trajectory to get Britain back on the transport track. What industry will need to see now is a transparent and proactive action plan to support this – a plan that will be cohesive and integrate all transport in its approach.

‘It is right that the Chancellor recognises the need to update Britain's transport system. Action now is not only necessary, but vital. Securing infrastructure funding is one step in the right direction but let's now see rapid progression in these projects to better connect our hubs around aviation, road and rail.’

For more of the latest industry news, click here.

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.