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Road Works: Small Businesses

Asked by Lisa SmartLiberal DemocratDepartment for TransportTabled Answered 26 November 2025UIN 92082

The question

To ask the Secretary of State for Transport, whether her Department has made an assessment of the potential merits of introducing compensation schemes for small businesses affected by prolonged or disruptive roadworks.

Answered by Simon Lightwood

The Government remains committed to supporting small businesses across the country and helping them thrive. While we recognise the importance of minimising disruption, essential works do need to take place from time to time, and many businesses will ultimately benefit from the improvements these works deliver. Responsibility for road works on local roads rests with the relevant local highway authority. Decisions on whether to offer compensation to affected traders are entirely a matter for the local council. In some cases, when street works are carried out by gas or water companies, small businesses may be able to claim compensation for losses incurred. Business owners should contact the utility company directly in such circumstances. There are currently no legislative provisions requiring electricity or telecoms companies to provide compensation for works, and the Department for Transport has no plans to change the existing compensation arrangements.

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