Whether you drive, cycle or skateboard along UK roads, you’ll probably notice that Britain has a serious pothole problem.
But aside from being annoying for drivers, potholes are actually a huge economic issue – as they can result in serious accidents, high congestion and vehicle damage.
In fact, just last year, the Asphalt Industry Alliance (AIA) reported that the cost of fixing all the potholes in England and Wales would be £17 billion. According to the Centre for Economics and Business Research (CEBR), this could be a good investment, as potholes cost £14.4 billion per year in economic damage.
Whilst the government is trying to keep up with this, the situation is only getting worse. In fact, The AIA reported that 1 in 6 UK roads will need re-laying within 5 years.
But why is it such a huge economic drain?
The Cost To Drivers
According to a report by Kwik Fit, the cost of fixing pothole induced vehicle damage costs an average of £144 per repair. This amounts to a huge cost of £1.7 billion for UK drivers.
And whilst some drivers are able to claim compensation from their local authorities, this cost councils around £22.7 million. Therefore, potholes don’t only cost drivers, they cost public services too.
And unfortunately, the cost isn’t getting any lower. With wage inflation and the increased cost of materials, the price of potholes is only set to increase over the coming years.
Wider Economic Costs
But the costs aren’t just direct. In fact, the RAC estimated that 1.3 billion hours are added to travel time because of potholes, costing £12.7 billion on average. This cost includes everything from the longer journey time to the delayed delivery of goods – meaning it hits on both ends.
And it’s not just business that suffers. When vehicles continuously speed up and slow down, emissions increase dramatically – which means the country has to battle even harder to offset them.
The Cost To Human Safety
Aside from productivity and vehicle damage, potholes can also cause serious injuries to people. Between 2018-2022, 451 people were killed or seriously injured in pothole-related accidents – and most of them were cyclists.
If you think about the additional cost of this for the NHS, combined with all the other factors mentioned, it quickly becomes clear how much of an economic problem potholes really are.
Why The Pothole Crisis Is Getting Worse
Despite the obvious issues that potholes bring – and the government’s plans to improve them – the situation is only getting worse.
According to LocalGov.co.uk, local spending on routine road maintenance dropped by 27% since 2006, falling from £1.76billion to £1.28 billion. And the backlog is only getting bigger, with only 47% of local roads now believed to be in ‘good condition’.
How The Government Plan To Fix It
The government have repeatedly pledged money to help lower the economic cost of potholes. In the December 2024 budget, £1.6 billion of funds were releases to help councils “reverse a decade of decline”. According to Gov.uk, this could help councils fill in 7 million extra potholes next year, saving drivers hundreds in repairs.
Transport Secretary, Heidi Alexander commented:
“This government is firmly on the side of drivers. Every area of England will get extra cash to tackle this problem once and for all. We have gone beyond our manifesto commitment to back motorists and help raise living standards in every part of the country.”
But is it enough?
Should Potholes Be Higher On The Government Agenda?
The UK’s pothole problem isn’t just a headache, it’s costing the economy billions of pounds every year.
Between the cost of repairing broken vehicles, lost working hours, emissions and accidents, it’s amazing how much impact holes in the road can have.
Instead of trying to quick fix the problem, many experts have recommended that the government invests properly in Britain’s roads, in order to help the economy grow in the long-run.
As we approach the October budget, it will be interesting to see what public funds the government invests in for long-term growth. We will wait to see if potholes are part of the equation…
