The funding will go towards resurfacing more than 5,000 miles of UK roads, the Department for Transport (DfT) said.
Last month, Prime Minister Rishi Sunak confirmed that the proposed rail connection between Birmingham and Manchester had been scrapped, and the money saved would be used to fund local transport projects.
£8.3bn of that funding will now be used to resurface over 5,000 miles of road across the country, which could save motorists up to £440 on vehicle repairs on average, according to the DfT.
A study from earlier this year found that the government had been neglecting to properly fund road repairs, with the number of miles of road resurfaced or given life-extending treatment falling to its lowest point in five years.
Across England, local highway authorities will receive £150m this financial year, followed by a further £150m for 2024/2025, with the rest of the funding allocated through to 2034.
Each local authority can use its share of the £8.3bn to identify which local roads are in most need of repair.
The DfT has allocated £3.3bn for local authorities in the North West, North East and Yorkshire and the Humber, £2.2bn for those in the West Midlands and East Midlands, and £2.8bn for the East of England, South East, South West and London.
While the funding represents a significant increase, a survey from the Asphalt Industry Alliance in March found that more than £14bn in central government funding is needed to fix the backlog of repairs following years of underinvestment.
“For too long, politicians have shied away from taking the right long-term decisions to make life easier for hardworking families – tackling the scourge of potholes being a prime example,” Sunak said.
“Well-maintained road surfaces could save drivers up to £440 each in expensive vehicle repairs, helping motorists keep more of the cash in their pocket.
“This unprecedented £8.3bn investment will pave the road for better and safer journeys for millions of people across the country and put an end to the blight of nuisance potholes.”
According to a survey from the AA, fixing potholes and investing in road maintenance is a priority for 96 per cent of drivers.
