How Leeds Council could lose out on Government funding if they fail to fix potholes on city's roads

Under new measures announced today (April 14), local highway authorities will face new rules on how they spend funding to fix potholes and maintain local roads, and any who fail to demonstrate they are maintaining roads effectively could lose around a third of their £1.6bn funding for the next year.

Pothole damage costs the average driver around £500 in avoidable repairs, and the Government has pledged to ease that financial burden by ensuring councils fix roads properly.

The changes will ensure that record investment in local roads is used as intended, with a total of £525 million held back from councils across England unless they are transparent and prove they are performing. Councils must publish reports proving they are spending their highways on road maintenance, showing long-term plans for looking after roads and better training for their highways teams.

“Drivers deserve smooth, safe journeys, and we’re making sure every pound goes straight into fixing roads and tackling potholes, not being spent elsewhere,” said Roads and Buses Minister, Simon Lightwood.

“Potholes aren't just an inconvenience - they cost drivers hundreds, if not more every time they cause damage to a vehicle. Fixing our roads is one of the most impactful things we can do to reduce the cost of owning and driving a car, and we're making sure every pound goes straight into doing exactly that.

“We've made it crystal clear, that councils which fail to maintain their roads will now risk losing up to a third of their funding. And for the first time, we’re giving councils multi-year funding so they can plan properly and reverse a decade of decline in our roads.”

The announcement follows the launch of the Government’s red, amber or green ratings to grade 154 local highway authorities (LHA) based on current road condition and how effectively they are spending the Government’s record £7.3bn funding.

Leeds City Council, who recently tripled their pothole repair rate, from 382 repairs in the first full week of January to 1,101 repairs in the first week of March, scored a ‘green’ after being able to demonstrate they are following best practice.

The increase in repair speed comes after council chiefs announced the trial of three new pothole-filling technologies, and extended the working hours of their 10 full-time pothole teams, with 5224 potholes across the city filled so far in 2026.