Starting in mid-April 2025, local authorities across England will begin receiving their portion of the government’s £1.6 billion highway maintenance funding, which includes an additional £500 million if require.
According to the Government, this funding is enough to fix more than seven million potholes annually.
However, to secure the full allocation, all councils must publish yearly progress reports and show that they have earned public trust in their efforts.
And the councils that fail to meet these strict requirements will have 25% of the additional funding (£125 million in total) withheld.
RAC data show drivers encounter an average of six potholes per mile in England and Wales, and pothole damage to cars costs an average £600 to fix.
Prime Minister Keir Starmer said: “The broken roads we inherited are not only risking lives but also cost working families, drivers and businesses hundreds – if not thousands of pounds – in avoidable vehicle repairs.
“Next month we start handing councils a record £1.6 billion to repair roads and fill millions of potholes across the country.
“British people are bored of seeing their politicians aimlessly pointing at potholes with no real plan to fix them. That ends with us.
“We’ve done our part by handing councils the cash and certainty they need – now it’s up to them to get on with the job, put that money to use and prove they’re delivering for their communities.”
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In response to the announcement by the PM, Transport Secretary, Heidi Alexander, said: “After years of neglect we’re tackling the pothole plague, building vital roads and ensuring every penny is delivering results for the taxpayer.
“The public deserves to know how their councils are improving their local roads, which is why they will have to show progress or risk losing 25% of their £500 million funding boost.
“Our Plan for Change is reversing a decade of decline and mending our pothole-ridden roads which damage cars and make pedestrians and cyclists less safe.”
Following his counterpart's statement, Shadow Transport Secretary Gareth Bacon criticised the government's announcement, calling it a "pothole sticking plaster."
He said: "Labour like to talk a big game on fixing roads but they are more interested in chasing headlines."
RAC head of policy Simon Williams said: "Drivers are desperate to see an improvement in the quality of their local roads and a reduction in the number of potholes. Linking the release of additional funding to councils informing drivers on the progress they’re making to fix the roads should mean that the record level of government funding is used in the best possible way.
"While filling potholes, which are the bane of drivers’ lives, is clearly a priority, preventing them appearing in the first place through the use of surface dressing and other preservation techniques is equally important."
How will the reporting work?
The Government has outlined how the reporting of the pothole spending will be done – and how the public can view it.
In order to ensure that councils across England are taking action to reduce the number of potholes in their area, they must now publish reports on their websites by June 30th 2025.
On that portal, they must detail how much they are spending, how many potholes they have filled, what percentage of their roads are in what condition, and how they are minimising disruption for drivers.
However, the councils must also provide further details.
They will also need to demonstrate increased spending on long-term preventative maintenance programs and present solid plans to address the harsher winters the country is facing, which are worsening the pothole problem.
By the end of October, councils must also prove they are involving communities in decisions about what work should be done and where.

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