Scots miss out on millions in pothole compensation payments

New figures reveal that just 15.76% of pothole claims were paid out in 2021-22, amounting to £274,254.01. The low rate is broadly similar to those recorded in 2019-20 when there there were compensation payments of £213,136.35 (16.3%) and 2020-21 when there were payouts of £210,726.55 (14.3%).

The pay out survey of local authorities shows a postcode lottery of successful payouts with one local authority, West Dunbartonshire Council failing to payout on any of the 36 claims received in 2021-22 while the Scottish Borders Council was paying out in 42.8% of its 98 cases.

Glasgow which is said to have the highest number of pothole damage claims in the UK with over 1000 seeking compensation - has the second lowest payout rate in 2021-22 with a 0.75% success rate, according to the analysis of returns from local authorities. The council's payouts amounted to £2,701.30 in 2020/22 down from £6,197.82 in 2019/20 and £3,475.02 in 2020/21.

It comes as the country has been facing an almost £1.7bn bill for road repairs.

A separate analysis by the motoring organisation AA found that Glasgow had the tenth highest number of potholes reported between April 2018 to June 2021, despite ranking first for the number of claims in the UK.

Glasgow had 38,100 potholes reported over the three-year period, although the research found that during those three years 34,592 potholes were repaired.

The only other Scottish area that appeared on the top 10 for the number of pothole claims was Fife, which came in tenth.

Fife also came in fifth for the most reported potholes in the UK, with 57,051 reported potholes between April 2018 to June 2021. They also repaired 55,617 potholes during this period.

But according to the latest research carried out by tthe Scottish Conservatives for 2021/22 the Fife Council paid out on just 3% of 234 claims, the fourth lowest in Scotland, behind South Ayrshire Council's 2.65%.

The Scottish Conservatives say that the low payout rates come against years of SNP "funding cuts" to local authority budgets, a trend they say has continued in Deputy First Minister John Swinney’s most recent budget.

They are calling for the introduction of Pothole Action Funds, giving communities the right to demand repairs to local roads.

Shadow transport minister Graham Simpson says drivers are picking up the tab for the SNP “starving” councils of money needed for essential repairs.

Scottish Conservative shadow transport minister Graham Simpson MSP said: “The dire condition of our roads is an extremely serious issue. Far too many local routes across Scotland are scarred with potholes which damage vehicles and can lead to crashes.

“But by imposing years of systematic and continued budget cuts, Nicola Sturgeon’s government are starving councils of the cash needed either to carry out essentials repairs or to compensate drivers affected by their failure to do so.

“Scotland’s pock-marked roads require urgent attention, and the SNP ought to commit to establishing the Pothole Action Funds that the Scottish Conservatives have called for.

“Sadly, though, as John Swinney’s recent budget reaffirmed, local government services are not a priority for ministers, who continue to impose unsustainable funding cuts on councils.”

The amount of compensation payouts over potholes in the road has risen by 30% in two years from £210,726.55 in 2019/20 to £274,254.01 in 2021/22 After Scottish Borders Council, the local authorities with the highest payout percentages was Dumfries and Galloway (42.67%), Argyll and Bute (37.5%), East Lothian (35.5%) and Clackmannanshire (33.3%).

After West Dunbartonshire and Glasgow, the lowest payout rates were in South Ayrshire (2.6%), Fife (3%), Edinburgh (5.09%) and Dundee (5.55%).

Figures obtained from local authorities last year suggests it would take around £1.68bn of taxpayer cash to improve the roads.

The worst recorded area was Dumfries and Galloway Council, with a repair bill backlog of just over £217m.

Highland Council meanwhile had a backlog of more than £194m, while Argyll and Bute Council’s bill amounted to around £112m.

An analysis based on returns from local authorities found that the worst recorded area was Dumfries and Galloway Council, with a repair bill backlog of just over £217m.

Highland Council meanwhile had a backlog of more than £194m, while Argyll and Bute Council’s bill amounted to around £112m.

Scotland’s two biggest cities, Edinburgh and Glasgow, had repair backlogs worth over £77m and £96m respectively.

Council leaders have warned that local services may have to be scrapped due to funding shortages following the Scottish government's budget at the end of the year.

Local authority chiefs have unanimously backed a motion arguing the budget will be detrimental to services.

It follows Deputy First Minister John Swinney announcing that councils will benefit from a funding increase of £550m.

The Scottish government says its budget will ensure councils are "protected".

But the councils' body, the Convention Of Scottish Local Authorities has said that taking into account inflation and growing costs, they have identified financial pressures of over £1bn for 23/24, and that Mr Swinney's budget will only cover around £70m of that.

The Fraser of Allander Institute said the funding was equal to a 4.9% real-terms decrease based on spending last year, while the Institute for Fiscal Studies accused the government of overstating the spending increases by comparing spending next year to last year's budget and not taking into account in-year rises.

A spokeman for Deputy First Minister John Swinney said: “Despite UK Government cuts to our budget, we have protected councils in the most challenging Budget since devolution to provide more than £13.2 billion in the 2023-24 Local Government Settlement.

“This represents a cash increase of over £570 million or 4.5%, which is a real terms increase of £160.6 million or 1.3%.

“Maintenance of the local road network is the responsibility of local authorities and it is up to individual councils to manage their own budgets and allocate the total financial resources available to them on the basis of local needs and priorities.

“If other parties wish to see more funding allocated for purposes of this type, they must identify which other budgets must be reduced to provide the funding. This has not been done on this - and many other - occasions.”

A spokesman for Glasgow City Council said: “All claims are determined on the individual merits of each case and in the context of our policy on road safety inspections and repairs.

“This policy has been developed in accordance with the code of practice set out by the Society of Chief Officers of Transportation in Scotland, which is followed by other Scottish local authorities.

“The policy means we take a risk-assessed approach to road maintenance that prioritises the most dangerous faults while also seeking to ensure repairs are permanent at the first time of asking .

“Winter is always a challenging time for road conditions due to the impact of frost, snow and rain on the road surface and potholes can appear suddenly at any time.

“The volume and weight of traffic will also have an on-going effect on road surfaces

“Recent data indicated that over 71% of Glasgow’s roads are in an acceptable condition, which places the city among the best performing roads authorities in Scotland.”

A spokesperson for West Dunbartonshire Council added: “All claims received are assessed by independent claims handlers. Claims are rejected if no fault or liability can be attributed to West Dunbartonshire Council.”

A Scottish Borders Council spokesman added: “We are responsible for a road network of almost 3000km and manage defects and maintenance through a robust risk based approach in line with Society of Chief Officers of Transportation in Scotland (SCOTS) guidance.

“This is particularly challenging given the large rural area that the Council covers, and the volume of heavy goods vehicles which use our network for both commerce and agricultural purposes.  

“We take any damage to vehicles allegedly caused by defects in the surfaces of our roads in the Borders very seriously and proactively seek to manage any insurance claims.  All claims received are investigated fully, however only those where there is a legal liability to compensate are paid.”