English councils will soon be ranked on their pothole repair performance, with those failing to publish detailed progress reports at risk of losing millions in road funding. The Department for Transport (DfT) is offering a £500m boost to local authorities from mid-April, but 25% of this funding will be withheld unless councils submit annual updates on their road maintenance efforts.

Prime Minister Sir Keir Starmer confirmed a new red-amber-green (RAG) rating system will track how effectively councils are addressing potholes. He said the aim is to bring greater transparency and end the "postcode lottery" of road quality. The move comes as data from the RAC shows an average of six potholes per mile across England and Wales.

While the government insists the plan promotes accountability, local leaders and opposition parties have criticised it. The Local Government Association (LGA) said the funding falls far short of what’s needed, with one council reporting a £410m shortfall. Critics also argue the focus should be on long-term preventative maintenance, not quick fixes.

Transport Secretary Heidi Alexander defended the policy, saying most councils should meet the requirements. Authorities must report spending, pothole numbers, and future plans by June, and show community consultation by October - or risk losing a quarter of the promised funding.