Scarce bitumen is among the many construction materials going up in price and blowing holes in council budgets across the country.
The Local Government Association (LGA) has today sounded the alarm over the massive increases in costs they are facing, with spiralling inflation and the increase in energy costs.
Analysis by the LGA and the Association for Directors of Environment, Economy, Planning & Transport (ADEPT) – an organisation representing municipal engineers, surveyors and planners – has estimated that the cost of filling potholes has gone up by 22% in the last six months.
Prior to the invasion of Ukraine, an estimated 60% of bitumen on the European market was sourced from Russia. Since Russia’s attack and the subsequent imposition of sanctions, 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 that increasing costs for electricity, steel, lighting and cement are all impacting on their budgets. As well as this, preparations for winter have been hit by a 60% increase in the price of salt.
Councils have seen a 37.5 per cent increase in the cost of running and repairing street lights over the last six months, with some authorities reporting that their running costs have doubled.
Local councils are already facing a significant road repair backlog, with latest estimates suggesting it would take them 10 years and £12bn to bring local roads up to scratch. Rising costs risk that backlog getting longer, with some works having to be delayed.
Previous LGA analysis, published in June, showed that councils were facing £3.6bn of unforeseen extra cost pressures onto council budgets in 2024/25 due to rising inflation, energy costs and the cost of meeting the new national living wage.
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, director of environment and infrastructure at Hertfordshire County Council and president of ADEPT, 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.
"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."
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