Unspent developer funds could fix £18.6bn road repair backlog

A significant sum of over £2.2bn in unspent Community Infrastructure Levy (CIL) contributions is currently held by planning authorities in England and Wales. A report from the All-Party Parliamentary Group (APPG) for Better Roads suggests these funds could be instrumental in addressing the £18.62bn backlog of carriageway repairs.

The report highlights that local authorities in England and Wales are facing an average in-year budget shortfall of £8.1M for the 2025-26 period. This financial pressure comes at a time when the condition of local roads is a growing concern, attributed to decades of inconsistent funding, an ageing network, increased traffic volumes, and the impact of extreme weather events.

Read Next in London Travel News4 min read

London Buses Face Weekend Delays Due to Multiple Events

Road closures and diversions are expected across the capital from Friday, October 9, to Sunday, October 11.

Limited use of CIL for road works

Despite the availability of CIL funds, which are designed to help local authorities deliver infrastructure to support development, their use for highway improvements remains low. Analysis informed by the Asphalt Industry Alliance’s (AIA) Annual Local Authority Road Maintenance (Alarm) 2026 survey indicates that only 30% of respondents reported using CIL for highway improvements. Furthermore, just 14% of these funds were specifically allocated to improving road surfaces and structures.

Local authorities have a legal duty to maintain their road networks in a safe and suitable condition. Alongside central government funding and local sources, they can receive developer contributions through Section 278 highway agreements and Section 106 planning obligations. CIL, introduced by the Planning Act 2008, offers another potential revenue stream for infrastructure projects, including roads.

Related Borough Coverage1 min read

Broken lorry causes M25 delays

Traffic disruption reported on the motorway due to the incident.

Recommendations for government action

The APPG for Better Roads is urging the government to provide clearer and enhanced guidance to local authorities on how they can lawfully charge and allocate CIL for road improvements. The group also recommends that legislation be considered for amendment to broaden the scope for CIL funding to supplement existing road maintenance budgets. This could help address what has been termed the 'plague of potholes' without requiring additional government funding.

Further recommendations include encouraging local authorities that charge CIL to identify and publish a defined proportion of these funds for local improvements, supported by better collaboration between highway and planning teams. The report also advises the government to act on National Audit Office recommendations to encourage more planning authorities to charge CIL.

For those planning authorities that charge the CIL, it provides an additional source of funding that may successfully be invested in addressing the backlog of repairs and delivering smoother, safer journeys for all roads users while boosting productivity and supporting economic growth.

Rebecca Paul MP, chair APPG for Better Roads

David Giles, chair of the AIA, stated that the condition of local roads is a significant issue for voters, with the repair backlog reaching a record £18.62bn. He echoed the call for government support through enhanced guidance and broader legislative scope to enable local authorities to invest unspent CIL funds in highway improvements. Lyle Andrew, chief executive of the Institute of Highway Engineers (IHE), emphasised the imperative for local authorities to utilise all available funding, noting that resurfacing currently occurs only once every 97 years. The IHE advocates for a collaborative approach across departments to maximise the benefits of CIL fund usage, including for planned preventative maintenance.

Next steps

The report, 'Working for better roads: Community Infrastructure Levy funding: an additional revenue stream for highway improvements', is available for download from the APPG for Better Roads website. The APPG is seeking government action on its recommendations to facilitate the use of CIL for road maintenance.