Councils in England and Wales are holding more than £2.2bn in unspent developer contributions that could be used to maintain and repair roads. This figure is part of the Community Infrastructure Levy (CIL), a charge levied on new developments to fund supporting infrastructure.
The All-Party Parliamentary Group (APPG) for Better Roads has called for changes in how CIL funds can be used. They want clearer guidance and legislative updates to enable more councils to spend these funds directly on road surface repairs and pothole prevention.
Community Infrastructure Levy and its restrictions
CIL is charged by around half of the planning authorities in England. The money raised is intended to support infrastructure projects related to new developments. Although current legislation allows CIL funds to be used on road repairs, in practice, only a small number of councils allocate funds this way.
The APPG’s report, Working for better roads: Community Infrastructure Levy funding, recommends four key actions. These include issuing enhanced government guidance, considering legal changes to broaden CIL’s permissible uses, and encouraging more councils to charge the levy, following advice from the National Audit Office.
Just 14% of councils spend levy on roads
Data from the Asphalt Industry Alliance’s annual survey reveals that only 14% of councils use any of their CIL income on road surfacing. At the same time, the backlog of carriageway repairs across England and Wales stands at £18.62bn.
The report emphasises that using levy funds for preventative maintenance like sealing or resurfacing roads before damage occurs is more cost effective than extensive repairs after potholes develop. Holding levy money unused in council accounts delays necessary work and increases long-term costs.
Developer contributions totalling over £9bn
The £2.2bn in unspent CIL funds is part of a larger pool of over £9bn in developer contributions held by councils. The Home Builders Federation, representing those who pay these levies, reports an additional £6.6bn held from Section 106 planning agreements.
Housebuilders want their payments to improve infrastructure promptly. The asphalt industry advocates for more funding to be spent on surfacing works. Both perspectives underline the urgency of making levy funds more accessible for road maintenance needs.
Potential impact on UK roads
Changing the rules and guidance around CIL could help councils tackle the growing carriageway repair backlog. More transparent and flexible use of developer contributions would enable earlier intervention to prevent potholes and extend the life of road surfaces.
The APPG chair, Rebecca Paul MP, summarises the position: “Both unspent CIL funds, and those collected on an ongoing basis, could be used to help fix our roads.” She urges the government to facilitate investment in timely road resurfacing and pothole prevention.
