The Department for Transport has introduced new compliance conditions on local road maintenance funding in England. Announced on 14 April 2026, the rules mean councils that cannot demonstrate effective upkeep risk losing around a third of next year’s allocation, with £525 million withheld nationally unless authorities are transparent about spend and delivery. (gov.uk)
DfT’s allocations published the same day confirm the 2026/27 highways maintenance block totals £1.617 billion, made up of a £1.092 billion baseline and a £525 million incentive element. The four‑year settlement from 2026/27 to 2029/30 amounts to £7.344 billion, with at least 25% of each year’s incentive funding dependent on transparency reporting; all incentive funding is withheld if reports are not published. Ministers also signal further performance‑based metrics later in the period. (gov.uk)
Under the new requirements, local highway authorities must publish accessible reports showing that government highways funding is used purely for road maintenance, set out long‑term plans for asset care and demonstrate improved training for highways teams. The intent, per DfT, is to link public money to visible improvements on the network and to make spending patterns open to scrutiny. (gov.uk)
The compliance regime sits alongside the government’s red‑amber‑green ratings for 154 authorities, based on three factors: current road condition, the level of maintenance spend and adoption of best practice. An interactive map allows residents to see performance locally, and the ratings are designed to drive better practice and inform funding decisions. For 2025/26, DfT recorded 16 green, 125 amber and 13 red authorities. (gov.uk)
Red‑rated authorities are being offered targeted support worth £300,000 over two years to help raise standards, including peer reviews and capability assistance tailored to each council. The department says the programme is intended to accelerate improvement and deliver safer, smoother journeys. (gov.uk)
For finance directors and heads of highways, the operational requirement is clear: ensure the DfT grant is demonstrably ring‑fenced for maintenance, build evidence chains from budgets to delivery, and prioritise preventative treatments over short‑term patching. DfT guidance also reiterates a risk‑based, whole‑lifecycle asset management approach covering the wider network, including footways, cycleways and structures. (gov.uk)
The settlement treats mayoral areas differently. Where authorities receive integrated transport settlements, baseline maintenance funding flows via those deals. Mayoral areas are eligible for incentive funding in 2026/27, but from 2027/28 Transport for City Regions settlements will not receive incentive funding from the highways maintenance block. DfT nonetheless expects transparency reporting across the full four‑year period. (gov.uk)
Highway maintenance remains a statutory local duty under section 41 of the Highways Act 1980. DfT frames the new conditions as a means of assuring that national investment results in improved asset condition and more reliable journeys, rather than being diverted to other purposes. (gov.uk)
Motoring groups broadly support the direction. The RAC and AA welcomed the focus on ensuring funding is actually spent on roads and the emphasis on preventative maintenance, arguing that this should improve surface quality and reduce repair bills for drivers over time. (gov.uk)
DfT indicates that additional performance measures may be introduced in later years of the settlement. For 2026/27, access to the full allocation depends on authorities publishing transparency reports and evidencing compliance with highways maintenance best practice. (gov.uk)