Rising materials and energy costs threaten council infrastructure programmes

New analysis by the Local Government Association (LGA) and the Association for Directors of Environment, Economy, Planning and Transport (ADEPT) estimates that the global rise in the cost of building materials and energy is dramatically increasing the cost of building new roads, filling potholes and providing street lighting, increasing pressure on stretched council budgets and delaying works.

The analysis found: 

• A 22 per cent increase in the cost of repairing a pothole, relaying a road surface and other maintenance costs

• A 37.5 per cent increase in the cost of running and repairing street lights over the last six months, with some authorities reporting their running costs have double

Global issues, says LGA, have had a particular impact on costs. For instance, prior to the war in Ukraine, Britain sourced around 60 per cent of the bitumen used in road repairs from Russia. Since the Russian invasion, councils have had to ration the supply of the material and source it from other markets, pushing up costs and delaying road repairs.

Councils are also reporting the increasing costs for electricity, steel and cement are impacting on their budgets. And as local authorities prepare for winter, they have been hit by a 60 per cent increase in the price of salt.

Local councils already face a significant road repair backlog and increased cost pressures could risk that backlog getting longer, with vital works having to be delayed.

The LGA, which represents over 350 councils in England and Wales, is calling on the new Prime Minister Liz Truss to urgently help meet these additional cost pressures in full as part of any new budget measures introduced.

Cllr David Renard, Leader of Swindon Council and 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.

“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 added, “Current inflation rates are having a massive impact on major capital schemes... And of course 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."