The Chartered Institution of Highways and Transportation (CIHT) is releasing a policy briefing that shows the clear benefits of adopting longer-term funding settlements for local roads in England.
Local roads represent the UK’s most extensive, heavily used, and under maintained infrastructure asset, making up 99% of the total road network and carrying 66% of all motor traffic vehicle miles in England.
Despite their critical importance to individuals, communities, and businesses – and a notional asset value exceeding £400 billion local roads remain subject to short-term, fragmented, and often ringfenced
funding mechanisms. This funding approach has significantly hindered effective asset management and contributed to a growing maintenance backlog.
Sue Percy CBE, Chief Executive, CIHT said:
“The forthcoming governmental Spending Review presents an important opportunity to shift the standard of funding for maintenance and management of England’s local roads, to a more strategic, long-term model. Five-year settlements already exist for the Strategic Road Network (SRN) and the rail sector, backed by industry consensus, which has demonstrated tangible benefits in terms of efficiency, planning, and
delivery.”
“Our ongoing research (to be released in full later this year) shows that by moving to a five-year funding settlement, there is potential to unlock 5 –10% of efficiency savings, which equate to appx. £1 billion
to £2.2 billion. These significant savings can be reinvested back into the highway maintenance budgets of local authorities, providing more capacity for repairs and renewal, helping to stem the continued
deterioration of a vital national asset.”
CIHT urges the government to act now and harness the potential opportunity for savings and reinvestment, which would directly support the government’s mission to drive economic growth and support the
delivery of the government’s missions.
The potential savings produced by implementing five-year fundingsettlements can additionally contribute to advancing a range of broader governmental policy objectives – including progress toward Net Zero, greater climate resilience, workforce development, increased social value, and accelerated technological innovation.
CIHT’s research will also demonstrate how a long-term funding model can help advance wider government priorities, delivering enhanced value for communities in the following key areas:
• Decarbonisation: A multi-year funding settlement enables sustained investment in low-carbon technologies, including the decarbonisation of plant and equipment, adoption of sustainable construction materials, andthe implementation of modern, greener techniques. This is essential for meeting the UK’s Net Zero target by 2050.
• Resilience and Climate Adaptation: To ensure the road network remains reliable amid increasing climate risks – such as flooding, extreme heat, and more frequent storms – authorities must undertake significant adaptation measures. Long-term funding provides the stability required to plan and deliver large-scale resilience projects based on robust climate impact assessments.
• Workforce Development: The highways and transportation sector faces challenges such as an ageing workforce, low recruitment, and evolving skill demands. A five-year funding model supports longer-term workforce planning, enabling organisations to offer more stable career paths and invest in training and upskilling – ultimately improving service delivery and reducing inefficiencies.
• Social Value: Longer-term contracts allow for the integration of social value objectives, such as boosting local employment, supporting apprenticeships, and improving access to jobs for underrepresented groups. These commitments are more feasible and impactful when supported by stable, predictable funding over several years.
• Technology and Innovation: Many digital and data-driven technologies require upfront investment with a longer payback period. Multi-year funding allows authorities to commit to these innovations, improving efficiency in decision-making and delivery.
A copy of the policy report and more information is available from [email protected]
(Pic: Vivacity)
