The County Councils Network (CCN ) says the reduction in funding across England means many councils will ‘have no choice’ but to cancel planned road maintenance projects.
Derbyshire County Council will receive £23.7 million to maintain roads in 2021-22, the Department for Transport (DfT) has announced.
That is £7.7 million less than the £31.4 million provided in the current financial year – a reduction of 24 per cent.
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The funding includes £500 million to repair potholes, with £10.5 million going to Derbyshire County Council as part of its allocation.
The DfT estimates the money for Derbyshire could repair 211,000 potholes.
But the CCN says the pothole fund should not mask an overall reduction in maintenance funding.
Coun Barry Lewis, Derbyshire County Council leader and economic growth spokesperson for CCN, said: "The Government has given with one hand and taken with the other, as the overall funding pot for roads maintenance will fall compared to last year.
"Our councils rely heavily on this capital funding to help tackle the backlog of road repairs in their areas and to ensure their road networks are in a good condition.
"Unless further funding is made available, our councils will have no choice but to reduce their roads maintenance work this coming year."
Road maintenance funding is allocated to councils and combined authorities based on a formula which uses the length of roads, number of bridges and level of street lighting.
In addition, Derbyshire County Council will also receive £3.7 million for transport improvement projects such as road safety schemes, cycle ways and bus lanes for 2021-22 – an increase of £28,000.
During the Covid-19 pandemic the Government has provided an extra £7.2 billion in funding to councils to spend on local priorities.
A DfT spokesperson said: "We have committed £1.125 billion to local roads maintenances for 2021-22, including £500 million from the potholes fund which will allow the equivalent of 10 million potholes to be rectified by local councils."