Firms will be fined £25,000 for every day they allow roadworks to overrun their deadline, it has been revealed.
Transport minister Sadiq Khan said the figure will increase ten-fold from the current £2,500 daily charge in a bid to get to grips with £4.2 billion annual cost of problem roadworks.
The move is the latest stage in the Department for Transport's street works action plan which, published last December, aims to reduce the amount of disruption caused by works carried out on our roads and pavements.
Street works also includes a plan, announced by Mr Khan, to give local councils greater powers to charge utility companies for inspecting roadworks in their streets.
It is hoped the initiatives will urge utility companies to complete works by the scheduled date. Customers will not see the fines reflected in the size of their bills.
Mr Khan said: "These new measures show just how serious the Government is about tackling problem roadworks which cost our economy £4.2 billion each year.
"There is no excuse for those companies who allow their works to drag on for longer than they should, causing inconvenience and frustration for the travelling public."
Copyright © Press Association 2010