The Chartered Institution of Highways and Transportation has encouraged the UK Government to unlock efficiency savings of up to £2.2 billion generated through introducing a five-year funding model for local authority highway maintenance.
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Ahead of the Autumn Budget 2025, the Chartered Institution of Highways and Transportation (CIHT) has submitted asks encouraging the UK Government to realise efficiency savings of up to £2.2 billion generated through introducing a five-year funding model for local authority highway maintenance.
The Autumn Budget is due to be delivered by Chancellor of the Exchequer, Rt Hon Rachel Reeves MP, on 26th November 2025.
The submission from CIHT to HM Treasury for the Autumn Budget 2025 can be found here.
CIHT’s submission to HM Treasury highlights the potential savings of up to £2.2billion that the UK Government could harness and reinvest back into maintenance for the local roads network by moving to a five-year funding cycle for local authorities.
Similar five-year funding cycles are already commonplace for National Highways (NH) and the rail sector.
Due to the current one-year funding cycle, local authorities are unable to plan highways maintenance well in advance due to funding uncertainty for following years. This also drives up the costs of maintenance and repairs.
Through moving to a five-year style settlement, the UK Government could unlock savings generated through efficiency and pre-planning which add up to a potential £2.2billion. These funds could be invested back into the local highways network (LHN) and would significantly uplift the funding allocated for highways maintenance.
The UK Government has made headway in addressing the backlog of highways maintenance in the LHN through the allocation of funding from the governmental Spending Review 2025.
The UK Government also published its 10-year infrastructure strategy, which included £1 billion for maintenance of key transport infrastructure, such as bridges, flyovers, and crossings.
However, the Spending Review and the 10-year Infrastructure Strategy did not provide the long-term, allocated funding certainty – covering capital and revenue - that CIHT has previously called for.
CIHT recommend that the UK Government establish a five-year funding model for local authority highway maintenance unlocking efficiency savings of 5–10%, generating up to £2.2 billion for reinvestment.
Establish a dedicated resilience fund to support highways projects which mitigate the effects of Climate Change.
Ensure new housing developments are well serviced by affordable and sustainable transport means.
Fund infrastructure and services to promote active travel and public transport.
Fund technical expertise for local authorities to implement best practice in road safety.
Review the impact of improved road safety on the NHS, social care, and economic productivity, to better inform the business case for investment.
Continue funding for the National Bus Centre of Excellence (BCoE) beyond March 2026.
Prioritise the delivery of affordable housing, serviced by sustainable transport.
Fund disability equality awareness training for local authority and private sector personnel who design or change the public realm to maximise benefits of existing funding.
Ensure local authorities have the funds to implement best practice in road safety.
Invest in educational opportunities to sustain an appropriately skilled workforce.
Ensure investment decisions respond to diverse societal needs.
Consider the barriers to the adoption of electric vehicles and provide funding to support those who are economically excluded or negatively impacted (CIHT will publish a report exploring this topic in early 2026).
Investigate mobility pricing, to reduce congestion, attain environmental targets and ensure the transition to electric vehicles does not reduce government revenues from the loss of fuel duty receipts.
CIHT looks forward to continuing to work with HM Treasury, the Department for Transport, and the UK Government to create a transport network that fits all our futures and delivers environmentally, economically, and socially.
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