Council leaders have warned that local authorities will struggle to maintain roads and street lights, and will face salt shortages this winter due to spiralling inflation and the price of energy.
New analysis by the Local Government Association (LGA) and the Association for Directors of Environment, Economy, Planning and Transport (ADEPT) has found that councils have seen a 37.5% increase in the cost of running and repairing street lights over the last six months.
The cost of road maintenance has also increased, with a number of councils seeing a 22% increase in the cost of repairing a pothole, relaying a road surface and other maintenance costs, according to the analysis.
The capital budgets of local authorities, which support the building of new roads and other local infrastructure, have seen an estimated rise of 21%, pushing up the cost of delivering investment in local areas.
The LGA and ADEPT said that global issues, such as the war in Ukraine, were responsible for driving up the costs of bitumen, electricity, steel, lighting, cement, salt and other resources, and urged the incoming Prime Minister to help meet these cost pressures.
Cllr David Renard, 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 roads condition 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.’
Mark Kemp, president of ADEPT, commented: ‘Current inflation rates are having a massive impact on major capital schemes. Local authorities are doing all we can to identify additional funding to meet rising costs, but without a change to funding allocations from government, the funding gap problems that lie with local councils will worsen dramatically, increasing the risk of some schemes failing.
‘Of course, it's not just major schemes. We face the same risks and issues with other grant allocations such as Bus Service Improvement Plans and Active Travel Schemes, where allocations based on bids made last year will not cover the cost of delivery. Without government support, some local authorities will have to prioritise highways maintenance and call a halt to new schemes.’
Responding to the LGA and ADEPT's warning, Jack Cousens, head of roads policy at the AA, said: 'The cost of living crisis is battering everyone and it is no surprise that local councils are struggling to make ends meet. Roads maintenance is expensive and the price of materials is only making the situation worse.
'Plagues of potholes, streets with worn out road markings and hedges covering important road signs seem to increase daily. Warnings over the price of salt will worry road users that a harsh winter could cut them and their communities off from accessing vital services.
'However, rising costs should not be an excuse for squeezing more money out of motorists to fill the financial hole. Estimates for council revenue during the current financial year (2022/2023) point to a surplus from parking, including fines, of more than £1bn from parking and approaching £95m from bus lane enforcement.
'And that is before they haul in the millions of pounds from the moving traffic violation enforcement powers they have been given. Whilst understanding the increase in prices of materials, there should be adequate funds from traffic and parking revenue to fill those holes.'
