Highways

£525m highways incentive fund tied to councils’ skills and asset management

Local authorities will need to show stronger asset management, transparency and professional development to secure their full share of 2026/27 highway maintenance funding.

Local authorities face tighter conditions for accessing highway maintenance funding after the government announced a four-year capital settlement worth £7.3bn from 2026/27 to 2029/30.

Under the arrangements, £525m of the 2026/27 allocation is designated as incentive funding. Authorities must meet best-practice requirements to secure their full allocation, including publishing maintenance transparency reports, showing that Department for Transport funding is being spent on highways and maintaining current asset management strategies.

Greater focus on preventative maintenance

The funding framework also requires authorities to evidence continued professional learning, particularly in preventative maintenance. Authorities that do not meet the specified standards risk losing a proportion of their incentive funding.

The settlement is intended to support longer-term planning and encourage a shift away from reactive repairs towards preventative work. The approach covers the wider highway asset, including footways, drainage, bridges, lighting columns and cycleways, rather than focusing solely on potholes.

According to the Chartered Institution of Highways and Transportation (CIHT), preventative maintenance can extend asset life, improve network resilience, reduce disruption and lower whole-life costs. The approach is consistent with the Well-managed Highway Infrastructure Code of Practice, overseen by the UK Roads Liaison Group.

Implications for the supply chain

Consultants, contractors and suppliers are likely to face greater demand for condition monitoring, asset management systems, lifecycle planning and preventative treatment techniques. Organisations will also need to demonstrate the effectiveness and long-term value of their interventions as funding requirements develop.

The detailed incentive requirements for 2027/28 and later years have not yet been published. The DfT has said further guidance will be issued, with future measures potentially adding performance-based conditions to existing expectations around transparency and asset management.

CIHT launches training course

CIHT has launched an eLearning course, Preventative Highways Maintenance Fundamentals, aimed at local authorities, consultants and contractors. The course was authored by Matthew Lugg OBE, independently reviewed by industry practitioners and developed in consultation with local authorities.

The organisation said the course is endorsed by the UKRLG Roads Board and supported by the Association of Directors of Environment, Economy, Planning & Transport (ADEPT). ADEPT members are eligible for a 30% discount on the full course fee. The programme is available through CIHT Learn and is intended to support workforce development while providing evidence of continuing professional learning.