Underspending by local authorities on road maintenance continues to run at a high level, despite signs that less money may be leaking from highway budgets across England, according to government figures.
The latest annual comparison of what councils actually spend, and the level of capital and revenue funding, points to a £90M gap – down from more than £150M in last year’s analysis.
As before, an apparent overspend against local transport capital allocations for maintenance offsets most, but not all, of a massive shortfall on the revenue side.
The gap between the ‘formula funding share’ (FSS) for road maintenance and reported spending was almost £440M. This is equivalent to one-fifth of the £1.7M road repairs component of the annual revenue support settlement for 2003/04 – the latest year for which outturn figures are available. Although disputed by many authorities (see page 5) this is seen as an indicator of the funding diverted by councils to other services. The previous comparison, for 2002/03, showed that just under one-quarter of earmarked road funds – amounting to £420M – were spent elsewhere.
Twenty-five authorities had outturn spending levels more than 25% below the combined capital and revenue allocations, compared with 14 the year before.
Transport ministers sent the figures – which also include best value performance indicators for road condition – to the Commons transport committee last week. Its members agreed to publish the annual breakdown in response to MPs’ concerns about raiding of highways budgets for more high-profile services.
Matthew Lugg, chair of the UK Roads Board, said the 20% revenue undershoot was disappointing. ‘Unfortunately, there a lot of councils siphoning off funds from FSS for other services, because they feel there is not enough for social services and education.’
But the new emphasis on transport issues in the comprehensive performance assessment regime – and use of asset management plans – should influence priorities.
Doug Pigg, chair of the municipal board of the Institution of Civil Engineers also predicted an end to the historic underspending of revenue cash.
He envisaged dramatic changes with the move to scanner road surveys, asset management plans, private finance for maintenance, and the ‘streetscene agenda’.
There would be ‘a significant increase in highway maintenance spending through a control mechanism, based on TRACS, in the next five years’.
The Asphalt Industry Alliance called for a major overhaul in local road funding. Either allocations were ‘wildly inaccurate’ or highways departments were not getting the funds, said David Armstrong.
Revenue was also going to support overspending on capital projects, he suggested.
Authorities had improved their budget management, said John Jackson of the Highway Term Maintenance Association. But spending had not improved in real terms, he said. ‘It is disappointing that some councils have underspent their allocation, although pleasing that overall, the under spend is reducing.’
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