Budget 2014: £200m pledge to repair road potholes

The government cheered drivers, cyclists and other road users by promising a £200 million cash injection for councils to repair potholes.

The "Potholes challenge fund" will provide an additional £200 million to local authorities to spend on maintaining the local road network.

This emergency funding being set aside by the government will allow local authorities to repair up to 3.2 million potholes that blight British roads following the recent severe weather.

John Allan, national chairman of the Federation of Small Businesses (FSB), said: "Half (54%) of FSB members say problems with the UK's road infrastructure costs their business up to £2,500 a year; a fifth say it has cost more. Recent flood damage has exacerbated the problem.

"The £200 million fund to repair potholes shows the government is finally recognising the more prominent transport challenges for small firms and the importance of local roads to run and grow their business."

In early-March, transport secretary Patrick McLoughlin announced that the government would hand out £140 million to local authorities following England's wettest winter caused untold damage to Britain's roads.

Paul Watters, head of public affairs at The AA, said: "On top of the £100m that was announced a few weeks ago, this is to be welcomed. But as local authorities will have to bid for the money, it seems a bit selective.

"It's good that the government has recognised the beating the roads have taken by the severe weather and acknowledged that frost is not the only cause of potholes."

Potholes are an increasing problem on British roads. It emerged this week that one cyclist is suing Hertfordshire County Council for £100,000 following injuries he received after hitting a pothole.

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