Rising energy prices, inflation, and higher material costs are putting pressure on work such as fixing potholes and maintaining street lighting, according to the Local Government Association (LGA).
Councils in England and Wales reported a 22% hike in costs to repair potholes, relay road surfaces, and other maintenance over the past six months.
Potholes are an emotive issue as they can portray and area as uncared for. Before the war in Ukraine around 60% of bitumen was sourced from Russia. Since then councils have had to ration supply and source from other markets, pushing up costs and delaying repairs.
Local authorities also reported a 37.5% cost increase in running and repairing street lighting, with some reporting a doubling. Electricity, steel, lighting and cement prices have also increased. And areas preparing for winter have been hit by a 60% rise in the cost of salt.
The data is from a survey of a dozen upper tier councils combined with an analysis of current market prices.
Capital project costs soar
It’s becoming more difficult for councils to invest in their local areas as the cost to deliver existing capital projects has risen by 21%.
President of the Association of Directors of Environment, Economy, Planning, and Transport (ADEPT) Mark Kemp said: “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.”
LGA transport spokesperson Cllr David Renard said the cost increases were “unprecedented”. He called for the government to cover them or risk road conditions further deteriorating, and other service reductions.
Long-term funding
He added: “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.”
LGA said councils already had a road repair backlog that would take ten years, and £12bn, to fix.
Previous research it published in June found local authorities faced a £3.6bn increase in council budget costs for 2024/25. This was due to rising inflation and energy, and new National Living Wage costs.
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Another example of why we shouldn’t rely on other countries for fuel and materials. Perhaps the government/future governments should invest more in our own country’s industries – the next one will probably be steel rationing.