Potholes on Britain's roads symbolize serious infrastructure problems affecting motorists and cyclists. Increased road usage due to a growing population and cuts to repair budgets have worsened the situation, with repair costs in England and Wales estimated at 17 billion. Government reluctance to raise fuel excise duty has contributed to a 130 billion cost over the years. The rise of electric vehicles will eventually diminish fuel duty revenues, impacting public finances. Amid economic weaknesses, the chancellor faces difficulties adhering to fiscal rules without raising certain taxes or cutting essential spending.
The cumulative cost to the exchequer of the freezes and cuts to fuel duty since 2010 is put at 130bn, a colossal sum given the struggle governments have had to balance the books during that time.
Fixing the problem will be expensive, with one estimate putting the cost of mending potholes in England and Wales at a hefty 17bn.
With 34m vehicles on the UK's roads and 1.6m fully electric, the current fuel duty of 24.4bn will diminish as petrol vehicles are phased out.
One estimate last week said Reeves will need to find more than 50bn to stick to her fiscal rule with a reasonable margin for error.
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