Capital Funding

For highway maintenance in Hampshire

Department for Transport Capital Funding

The Department for Transport (DfT) provides the main source of capital funding for local highway authorities to fund their highway maintenance operations. The funding is determined and allocated through a number of established funding mechanisms.

The majority of capital funding comes from the Highways Maintenance Block and Pothole Fund. These are allocated using a needs-based funding formula which determines the maintenance grant for each local authority and is based on the assets for which they are responsible.

The DfT also provides funding through incentivised or competitive bidding processes such as the Incentive Fund. This funding stream was introduced in 2015 to financially reward councils that demonstrate they have implemented robust asset management processes and deliver value for money highway services.

For further information on Government funding and how it is allocated for highway maintenance, please follow this link:-

Highways maintenance funding formula allocations (2022 to 2025)

Pothole Fund

In Budget 2023, Government announced an additional £200 million for the Pothole Fund for the financial year 2023/24. This was allocated using the needs-based formula and Hampshire County Council was awarded £5.954m.

DfT has always strongly advocated a risk-based whole lifecycle asset management approach to local authority highways maintenance programmes. This funding was intended to be used for wider maintenance activities and priorities, and not just for the fixing of potholes.

Network North Funding

On 4 October 2023, Government announced an additional £8.3 billion over the period 2023 to 2034 for local highway maintenance as part of the Network North Plan. This additional funding is intended for the resurfacing of carriageways, cycleways, and footways, as well as wider maintenance activities and asset management priorities, such as keeping highway structures safe.

From this additional funding Hampshire County Council was awarded £4.225m for 2023/24 and a further £4.225m for 2024/25. The total additional funding that Hampshire County Council expects to receive over the 11 year period is £132.297m. Future annual allocations are yet to be determined by Government.

The following sections provide details on how the additional Budget 2023 pothole funding of £5.954m and the Network North funding allocation of £8.450m are being spent.

Budget (additional £5.954m) 2023

Budget 2023 (Pothole Fund) - Schemes Undertaken in 2023-24

Network North (additional £4.225m) 2023/24

Due to the notification of the additional Network North funding late in the financial year, the £4.225m allocation has been reallocated to the 24/25 financial year.

Network North (additional £4.225m) 2024/25

Network North Funding - Schemes Planned for 2024-25

Innovation in delivering highway maintenance

Innovation is always at the forefront of the delivery of Hampshire County Council’s Highways Service. Working collaboratively with our term maintenance contractor Milestone Infrastructure Limited (Milestone), innovation is embedded within the governance of the Hampshire Highways Service Contract (HHSC), which delivers all of the County Council’s highway maintenance works.

The HHSC provides the flexibility and opportunity to trial and adopt innovations such as new technology, materials, and equipment, or the introduction of new working methods to improve efficiency and productivity.

Over recent years the County Council has trialled and implemented numerous innovative initiatives. Examples include the development and commissioning of its own dedicated highway materials recycling facility, trials of JCB Pothole Pro, Map16 Asset Management Software, smart drainage gully sensors, bollards made from bio-polymer materials, the use of Hydrotreated Vegetable Oil fuel instead of diesel and AI-based footway condition surveys.

Hampshire County Council is committed to continuing to explore new areas and ideas for innovation. An example of where this will be proactively applied is via the Live Labs2 Programme (ADEPT Live Labs 2: Decarbonising Local Roads in the UK), which Hampshire County Council in partnership with Somerset and Cornwall Councils (known as the Wessex Partnership) was successful in obtaining funding for.

Hampshire County Council is a forward-thinking Highway Authority in terms of innovation and proactively strives to identify ways in which the delivery of the highways service can be improved by using the latest ideas and best practice from across the industry.

Ensuring works are not undermined by Utility Companies

To assist in the execution of its duties under the Traffic Management Act 2004 and the New Roads and Street Works Act 1991, and to minimise traffic disruption, the County Council makes full use of its established permit scheme and other tools and legislation to manage and regulate works and activities on the public highway.

The permit scheme has been written to not only reduce traffic disruption, but also to protect the highway asset by rewarding first time permanent reinstatements and working methods that reduce the impact on the road surface.

Furthermore, the County Council makes full use of Section 58 and Section 61 of NRSWA in order to protect new surfaces and newly constructed roads. The County Council will ensure that a forward plan of all resurfacing schemes is shared with Utility Companies via multiple communication channels. These channels will include but not be limited to Permits (statutory s.58 Process) in Street Manager and also Quarterly Co-ordination Meetings.

It is important that the County Council ensures early engagement is undertaken to prevent the need for any utility company to excavate in newly resurfaced road(s). Legislation allows for a number of exemptions, but through proactive engagement these will be minimised. All works that are required within a newly resurfaced road will be rigorously challenged, even if the works fall within the exemption criteria to ensure that the Highway Asset is protected at all times.

Historic investment in highways and planned investment for 2024/25

The table below shows the amount of capital funding received by DfT and the total capital investment in Hampshire County Council’s highway network since 2019/20.

In addition to Government funding, Hampshire County Council has provided significant levels of locally resourced capital funding for highway maintenance.

The funding and investment is used for the maintenance of all highway assets.

Year Total DfT capital grant funding Total amount of capital investment in the maintenance of local highway networks (including both council and DfT grant funding streams)
2019-2020 £27,622,000 £39,445,000
2020-2021 £45,845,000 £58,668,000
2021-2022 £33,493,000 £48,316,000
2022-2023 £33,493,000 £48,816,000
2023-2024 £43,672,000 £64,870,000
2024-2025 £37,718,000 £75,226,000

Funded by UK Government logo

Made possible by reallocated HS2 funding

The highway maintenance schemes planned for 2024/25 listed on this webpage are being delivered using Government's Network North funding.

Network North: Transforming British Transport (