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Greater certainty in funding needed to protect road maintenance savings, says watchdog

Funding pressures have increased efficiency in road maintenance but greater certainty is needed to ensure the trend continues, according to a report by the public spending watchdog.

The actual reduction in budget for the Highways Agency, which maintains the strategic road network, will now 7%, against the expected 19% that was announced in the 2010 Comprehensive Spending Review, because of subsequent increases in capital funding.

According to the National Audit Office, however, the lack of predictability has practical implications and may cost more in the long term.

Historically, local highway authorities spend more revenue on maintenance, but report that they now carry out fewer routine activities such as clearing gullies, which are essential to preventing water seeping into roads’ sub-structure. In addition, road maintenance contractors have cited unpredictable income as a disincentive for them to invest in improving efficiency.

“Stop/start funding makes long-term planning more difficult for highways authorities,” watchod head Amyas Morse said. “The Department for Transport (DfT) understands the threat posed to road maintenance from the uncertainty of funding, but establishing a new government company to address the problems will not, in itself, be enough.

“The department should work with the Treasury and the Department for Communities and Local Government to address the unpredictability of funding for both the strategic and local road networks.” 

The current pattern of funding, combined with the need to spend money within the financial year, means that most road maintenance is carried out between September and March, said the watchdog. Although this is less disruptive for road users, it is less efficient than carrying out the work at other times of year because materials can be more difficult to handle in cold and wet conditions, and daylight hours are shorter, it continued.

Additional funding for emergency repairs is also made available at the end of the financial year. As a result, almost all highways authorities need extra capacity from the market at the same time, making it less likely that they will obtain value for money.

The DfT is planning to change the Agency’s status to that of a limited company wholly publicly owned by the government, with six-year funding certainty for capital projects and maintenance, adding certainty to the market.

“Although recent data showed that the surface condition of the strategic road network improved between 2003 and 2013, it may be that deterioration has not yet become visible,” said the watchdog. Road users’ satisfaction with the general upkeep of the network fell by two per cent between 2011-12 and 2012-13 to 91%.”



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