A new report from the Local Government Association (LGA) and the Association for Directors of Environment, Economy, Planning and Transport (ADEPT) has revealed a 37.5% increase in the cost of running and fixing street lights over the last six months.

The cost of repairing our roads has also risen, with many councils noting a 22% increase in the price of filling a pothole, resurfacing and other common maintenance costs, according to the study. 

The budgets of local authorities, which include funding for building new roads and local infrastructure, have seen an estimated rise of 21%. This has escalated the cost of delivering investment in local areas.

The LGA say that global issues, such as the war in Ukraine, are responsible for driving up the costs of bitumen, electricity, steel, lighting, cement, salt and other resources, and urged the new prime minister to help mitigate these pressures.

Cllr David Renard, a transport spokesperson for the LGA, said: “As this stark new analysis shows, councils across the country are facing unprecedented increased costs to repair our local roads, keep our street lights switched on and invest in improved local infrastructure.

“Global pressures, such as Russia’s invasion of Ukraine, as well as increasing inflation and a shortage of materials have all provided the perfect storm for councils and piled pressure on already stretched local budgets.

“To tackle this issue, the new Government must cover these increased costs for councils or risk road conditions getting worse or reductions in other services.

“Only with adequate long-term funding – to cover increased cost pressures and invest in local services – and the right powers, can councils deliver for our communities, tackle the climate emergency, and level up all parts of the country.”

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As a result of a lack of certainty over funding, the industry struggled to invest in skilled labour, and instead, focused on short-term solutions that came at a cost. Senior Department for Transport officials have been warned that costs could continue to rise next year if the problems aren’t addressed.

The UK Roads Liaison Group (UKRLG) met this month to be briefed on the difficulties within the industry. Mark Stevens represented The Association of Directors of Environment, Economy, Planning & Transport (ADEPT) and shared findings with those in attendance.

The evidence presented showed that the UK supply chain pressures are proving a problem for the survival of Tier 2 and Tier 3 contractors, and that average material costs have increased in excess of 20% compared to the same period last year.

These factors have led to difficulties for the sector, including increased costs and a lack of competitive pricing, as supply is being driven by product availability and increased lead-in times.

For example, lead-in times for standard concrete products were, at times, beyond four weeks, sometimes jumping to 16 weeks for a specialist product. Haulage shortages also meant lead-in times for timber were beyond 8 weeks.

The news comes after the Government announced a cut to road maintenance in the latest budget. The UKRLG is now asking for an early release of funding from the government to resolve these issues. 

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Local councils have always viewed repairing potholes as a priority, and despite problems caused by the pandemic, potholes were still being fixed at a rate of one every 19 seconds. 

Now, the LGA is putting pressure on the Government to reinstate the budget in their upcoming spending review. Rather than meeting their usual annual budget target, the LGA feels it should include an additional £500 million each year.

Cllr David Renard, the transport spokesperson for the LGA, said: “Councils are working hard to keep our roads safe and resilient, repairing potholes as quickly as they can. However, it would already take £10bn and more than a decade to clear the current local roads repair backlog, with the COVID-19 pandemic and subsequent cancellation of key planned works risking extending this backlog further.

“With long-term and consistent investment in local road maintenance in the Spending Review, councils can embark on the widespread improvement of our roads that is desperately needed, to the benefit of all road users up and down the country, including cyclists.”

The result of global supply issues means that there has been a significant increase in the cost of road maintenance and highways construction. The LGA is urging that inflation rates be taken into account in future funding allocations.

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