Funding for Devon County Council’s Highways and Traffic Management service is either a Capital or a Revenue allocation.
Capital expenditure reflects investment in an asset and is defined in the Accounting Code of Practice as “expenditure which adds to, and not merely maintains, the value of a fixed asset.” Highway works eligible for capital funding include activities that:
Revenue expenditure covers day to day expenditure and income, including works which maintain, rather than increase, the value of a fixed asset.
Some example of revenue items are works involving repair of safety defects, minor drainage repairs, grass cutting and winter maintenance. It also includes the running costs of the service, such as staffing, premises costs and income received from licences etc.
Revenue funding is available via the community charge, business rates and funds provided by central government. Another source of revenue funding is the on-street parking account. Any surplus revenue generated from on-street parking after the operating and management costs have been accounted for can be spent on things like public transport provision, highway improvements and environmental improvements but not general highway maintenance work.