Utility firms are set to be billed for digging up streets 

Utility firms will be charged up to £2,500 a day for digging up roads under a plan to limit disruption.

Local authorities will get the power to charge companies for every hour they ‘occupy’ the road as opposed to the traditional approach of a permit being granted for a set amount of time.

Fees under the ‘lane rental plan’ will vary depending on the likely disruption caused in the busiest parts of the day and the economic impact. This will give utility firms an incentive to carry out work overnight or at weekends or at certain times of year, when charges will be less or even nothing at all.

 The charging scheme is expected to be rolled out across the country next year

Roadworks have been blamed for causing immense harm to the economy

Successful trials in Kent and London have shown that the rental plan also encourages the firms to co-operate when they need to dig up congested routes. The scheme will now be rolled out nationwide next year.

Transport Minister Jo Johnson said: ‘Drivers often see red when roadworks cause them delays, especially if no one is working on them. Lane rental has seen a massive drop in disruption to drivers as utility companies have changed when and where they carry out work. Now we want millions of motorists around England to get the same benefits.’

The 2.5million roadworks carried out each year across the country cost the economy £4billion because commuters are unable to get to work on time, deliveries are delayed and retailers lose business. Officials hope the proposals will improve journey times for drivers and boost the economy.

In the trials, severe congestion has fallen by more than half. In London, utility companies have worked together more than 600 times since the lane rental plan was introduced.

Nicholas Lyes of the RAC said: ‘This is a very welcome announcement. Trials showed that some of the worst congestion caused by planned utility works in London was reduced by half on roads where lane rental was in operation, so rolling this out will extend the benefits nationwide.

‘While motorists accept that some roadworks and congestion are unavoidable, lengthy and unnecessary queues are incredibly frustrating.

‘RAC research suggests congestion on our roads and journey time reliability are growing concerns for motorists so introducing lane rental should encourage better planning and co-ordination of roadworks, and mean utility works are completed in a swifter, more efficient manner.’

The Department for Transport will produce guidance in the autumn to help councils develop lane rental schemes for approval, with the first expected to be in place by the end of next year.