Local authorities will need to demonstrate professional learning and asset management competence to secure £525 million of incentive funding in 2026/27. This is part of a new four-year highways maintenance settlement that links investment to performance rather than an automatic annual allocation.
Four-Year Settlement Brings Certainty and Expectations
The government has allocated £7.3 billion in capital funding for local highway maintenance between 2026/27 and 2029/30. This offers local authorities greater certainty than previous yearly funding cycles.
The settlement encourages councils to adopt proactive, preventative maintenance instead of costly reactive repairs. Authorities that fail to meet specified standards risk losing part of their funding, since £525 million in 2026/27 is classified as incentive-based.
To access their full share, local authorities must publish highways maintenance transparency reports, show Department for Transport (DfT) funding is spent on highways, maintain asset management strategies, and demonstrate ongoing professional development, especially in preventative maintenance.
Funding allocations have been announced through 2029/30, but incentive funding requirements for 2027/28 onwards remain unconfirmed. The DfT has indicated more guidance will follow, with possible added performance measures alongside transparency and asset management expectations.
Beyond Potholes: A Whole-Life Asset Approach
Public debate often focuses on potholes, but local networks include many assets such as footways, drainage, bridges, lighting columns and cycleways. The government is pushing local authorities to maintain these assets before major deterioration occurs.
Preventative maintenance can extend asset life, improve network resilience, reduce disruption, and lower whole-life costs. This aligns with the Well-managed Highway Infrastructure (WMHI) Code of Practice, overseen by the UK Roads Liaison Group (UKRLG), increasingly reflected in funding policies.
New Demands for the Supply Chain
Consultants, contractors and suppliers must now support local authorities in proving value and understanding asset conditions. Expertise in condition monitoring, asset management systems, lifecycle planning and preventative treatments is becoming essential.
Organisations demonstrating efficiency, value and innovation are better positioned as funding criteria evolve.
Professional Learning Required for Funding
One key change is the emphasis on continued professional development. Effective asset management depends on skilled teams as much as budgets.
The Chartered Institution of Highways & Transportation (CIHT) has launched a new eLearning course, Preventative Highways Maintenance Fundamentals. It is designed for local authority staff, consultants and contractors. Authored by Matthew Lugg OBE, a recognised expert in highway asset management, the course is endorsed by the UKRLG Roads Board and supported by the Association of Directors of Environment, Economy, Planning & Transport (ADEPT).
ADEPT members receive a 30% discount on the course, available via CIHT Learn, the institution’s eLearning platform. The programme offers a practical route to workforce development and a way to evidence continuous professional learning.
Preparing for Future Funding Cycles
Although detailed incentive funding conditions for 2027/28 and 2028/29 are yet to be released, the overall direction is clear. Transparency, asset management maturity, preventative maintenance and professional competence will influence future allocations.
Local authorities and their supply chains that invest in these areas will be best placed to secure funding and improve UK local road networks over the long term.
More information on the Preventative Highways Maintenance Fundamentals course is available at www.cihtlearn.org.uk.
