• 1 September 2010

Compensation Claim pay-outs hit road repairs

by Macks Solicitors

According to a new report compensation claims being made by road users against local councils are on the increase, leaving the councils short of funding for road repairs.

Extra funding made available to local authorities from the government for road maintenance is being used up with almost £85 million being paid out in compensation claims last year.

The report by the Asphalt Industry Alliance (AIL) says hundreds of millions of pounds more is needed for road maintenance with each authority in England still about 50% short of what is believed to be required to maintain roads adequately. The report also said that 80% of local authorities believe road users safety was at risk because of the lack of funds available for road repairs.

Tax income from drivers should be spent on roads say some motoring groups in the wake of this report. The RAC foundation executive director, Edmund King said: “This report made for uncomfortable reading.”

Last year on average, each local authority received £800,000 extra funding for road repairs but with each council then paying out almost £750,000 on compensation claims, little is being spent on actual road maintenance. The amounts of claims made against the councils by road users have almost doubled in the last ten years.

AIL’s chairman Jim crick said: “If local authority engineers continue to receive just half of the funds they need to maintain roads properly, insurance claims will continue to spiral out of control and our roads will become unsafe.

£43 billion is collected by the treasury each year from motorists in motoring taxes but only £6 billion of this is spent on roads. The head of roads and transport policy at the AA Motoring Trust, Paul Watters said that taxation from drivers should be used for road maintenance. “Britain’s roads are a valuable national asset and they must be properly funded and maintained. At the moment, many believe they are a national disgrace. We have a right to expect and get a safe road network.” he said.

Local authorities need the extra funding to maintain roads properly which should in turn reduce the number of insurance claims lodged against them.

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