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Council road budgets will hit business

Cuts in council road maintenance budgets could detrimentally affect businesses across the UK, according to the director of Henderson Insurance Brokers.

UK councils are responsible for 90% of the country’s road network, but have been ordered to slash £223 million from road budgets by the Government.

Jonathan Willett from Teesside based Henderson Insurance Brokers believes that this could end up costing councils more in the long run due to vehicle damage and high costs to repair road surfaces.

He commented: “Potholes are already a major problem on our roads and telling councils to cut what amounts to 40 per cent of the total road maintenance spending will only make the problem worse.

“Haulage companies and businesses that provide cars to key employees face disruption to their operations when vehicles suffer damage caused by hitting potholes and have to be taken out of service while they are repaired.”

Mr Willett made this statement in response to the Public Accounts Committee report on the Department of Transport’s spending including the council road maintenance budget cut.

On average, insurance claims for pothole damage to cars is £750.

Mr Willett continued: “Companies with vehicles damaged by potholes risk finding themselves in a ‘Catch 22’ situation - either paying for the repairs themselves or fearing increased insurance premiums if they make a claim.

“Potholes can be difficult to avoid however carefully motorists drive as some roads are so badly indented. These deep depressions also can become an almost invisible hazard if they become filled with debris or water.”

Businesses can also experience increased running costs as potholes can cause damage that affects a vehicle’s fuel consumption such as putting the wheel tracking out and causing wear and tear to tyres.

Mr Willett added: “Instead of ordering councils to cut road maintenance spending, the Government should commit to funding an upgrade of the country’s road network.”

Drivers are eligible to claim under their motor insurance policies with repairs for any problems caused to their vehicles by potholes classed as accidental damage.

This was posted in Bdaily's Members' News section by Ruth Mitchell .