← Back to Events

Cuts to council budgets increase likelihood of potholes

Motorists were warned to expect a pothole blight as the government announced details of a 15% cut in the budget for maintenance of local roads. Experts believe that more than 1m potholes developed in last year's winter, with this month's deep freeze causing more damage to the roads. The Department for Transport today said more than £3bn would be spent on local roads' maintenance in England over the next four years. But annual expenditure will fall from £836m this year to £707m by 2014. The Local Government Association said drivers had suffered for years due to a lack of government funding for road repairs, with an estimated £9.5bn worth of work still to be carried out. Peter Box, chairman of the LGA's economy and transport board, said: "Unfortunately the outlook for motorists is not about to get any better. Local authorities faced with the perfect storm of crumbling roads and a black hole in their budgets are going to have some incredibly difficult decisions to make when it comes to prioritising repairs in a way which best serves their areas." Edmund King, president of the AA, said the maintenance cuts could prove costlier in the long run because wear and tear on roads would increase, creating a backlog of maintenance as well as compensation claims. "Whether we like it or not it will cost more to repair the roads." Next year the south-west is set to receive the biggest maintenance grant, with Devon getting more than £36m. Norman Baker, the regional and local transport minister, said a system that funded councils according to the number of roads under their control, rather than the condition of those routes, would lead to improvements. It would ensure councils that worked to keep roads in good condition were "not then penalised with lower funding". The government has also announced a £1.3bn fund for small transport projects, such as cycle lanes.

Source: The Guardian ↗

Market Reactions

Price reaction data not yet calculated.

Available after full seed + reaction pipeline runs.

Similar Historical Events(3 found)

MarketReplay Insight

3 similar events found. Price reaction data will appear here after the reaction pipeline runs.