’We would encourage the government to maintain focus on this issue,’ says risk proposition manager

Zurich UK has urged the UK government to continue reviewing pothole repair funding after announcing that it would allocate £1.6bn for road maintenance.

In its election manifesto, Labour pledged to fix up to one million more potholes every year as part of plans to crack down on car insurance costs.

The government’s new budget allocation for local road maintenance, announced on 20 December 2024, is £500m higher than originally outlined.

Each local authority can use its share of the £1.6bn for 2025 to 2026 to identify which of their roads are in most need of repair and to deliver immediate fixes for communities.

Alix Bedford, risk proposition manager, customer and distribution manager at Zurich UK, said the additional funding was welcome.

“However, given current estimates suggest £16bn is needed to repair roads around the country and the cost to motorists last year in vehicle repair bills is believed to have been £500m, we would encourage the government to maintain focus on this issue, including regular review of further funding requirements,” he added.

“It is also vital that local authorities are able to use any additional funding they do receive to prioritise repairs to their local road networks where they are most needed.”

’Plan for change’

The funding comes after Allianz data, published on 11 November 2024, revealed that one in five (21%) claims related to pothole damage in 2023 resulted in a vehicle being declared a write-off.

Zurich Municipal also reported a rise in pothole-related vehicle damage claims, with local authorities receiving 81 such claims in 2022, up from 24 the previous year.

Prime minister Sir Keir Starmer said: ”Broken roads can risk lives and cost families hundreds if not thousands of pounds on repairs. That’s a cost that can easily be avoided by investing properly in our roads. 

“Through our plan for change, we’re determined to put more money back into the pockets of hardworking people and improve living standards.

”That’s why we’re giving councils funding to repair our roads and get Britain moving again – with a clear expectation that they get on with the job.”