Capital Funding
For highway maintenance in Hampshire
Department for Transport Capital Funding
The Department for Transport (DfT) is the principal provider of capital funding for local highway authorities, supporting the maintenance and improvement of local highway networks. The majority of this funding is provided through the Highways Maintenance Block, which is distributed using a needs-based formula that reflects the scale and characteristics of the highway assets for which each authority is responsible.
In addition to formula-based allocations, the DfT provides funding through targeted bidding opportunities and incentive-based mechanisms. The Incentive Fund, introduced in 2016, was designed to encourage the adoption of robust asset management practices by rewarding authorities that demonstrate effective long-term planning, sound decision-making and value for money in the delivery of highway maintenance services.
Further information on highway maintenance funding and the methods used to allocate funding can be accessed via the link below.
Highways maintenance block: formula allocations 2026 to 2030 - GOV.UK
Highways Maintenance Funding in 2026/27
On 29 November 2025, the Government announced the highway maintenance funding allocations for eligible local highway authorities and mayoral combined authorities for the period 2026/27 to 2029/30. The settlement provides £7.3 billion of capital funding over four years to support the maintenance and improvement of local roads across England. This longer-term funding approach gives local highway authorities greater financial certainty, enabling more effective forward planning and increased investment in preventative and planned maintenance activities.
For 2026/27, Hampshire County Council will receive £40.095 million through the Highways Maintenance Block, with a further £14.635 million allocated from the Incentive Fund. To secure the full Incentive Fund allocation, local highway authorities must demonstrate compliance with a range of requirements that promote best practice in highway asset management. Detailed information on the Incentive Fund and its requirements can be accessed via the link below.
Highways maintenance incentive funding requirements for 2026 to 2027
The publication of an annual Local Highways Maintenance Transparency Report is a key requirement for local highway authorities and accounts for 50% of the 2026/27 Incentive Fund allocation.
Local Highways Maintenance Transparency Report
The purpose of the Transparency Report is to provide clear and accessible information on how highway maintenance funding is being invested, the condition of the local highway network, and the outcomes being delivered for residents, businesses and communities. It sets out details of maintenance activities, expenditure and network performance to help taxpayers understand how public funding is being used to maintain and improve the local highway network and the benefits that this investment delivers across the county.
To support consistency and comparability between local highway authorities, the Department for Transport has provided a standard reporting template. Hampshire County Council’s Transparency Report can be accessed via the link below.