Transport Insights

There was very little detail about capital funding for roads in England in Wednesday’s Spending Review, which covers the four-years from 2026-27 to 2029-30 as far as capital is concerned:

Providing £24 billion of capital funding between 2026‑27 and 2029‑30 to maintain and improve motorways and local roads across the country. This funding increase will allow National Highways and local authorities to invest in significantly improving the long-term condition of England’s road network, delivering faster, safer and more reliable journeys;

National Highways’ interim settlement for 2025-26 is £4.8bn of which £3.4bn is capital, while capital funding for local road maintenance in England is “nearly £1.6 billion”, according to the Department for Transport, which includes £500m of additional funding announced in the October Budget.

So, the £6bn annual average announced yesterday is on the face of it higher than the current approximately £5bn, but might get eaten away by inflation.

And then there is the vague phrase “to…improve…local roads”. There are various other capital funding streams for local road enhancements, including what was called the Major Roads Fund – large local majors and the major road network.

We will have to wait and see how the money is split between the local and strategic road networks. If the government is serious about fewer enhancements during the next road investment strategy (and the interim settlement already includes just £1.3bn for capital enhancements) there may be some more cash for councils to fill potholes, I mean invest in the long-term management of their highways.

But it could all be smoke and mirrors…