It will cost more than £12bn and will take 13 years to fix all the potholes on roads in England and Wales, a report has claimed.
Despite more being filled in, the Asphalt Industry Alliance (AIA) claims the cash spent on repairs in the last 12 months has been "wasted".
The group's annual survey also found an increase in the amount paid in compensation to motorists in England to more than £20m.
Local authority staffing costs, to process the claims, have increased to around £18m, the report said.
Alan Mackenzie, chairman of the AIA, said: "Essentially, the money spent on filling the 2.7 million potholes reported is wasted - it is inefficient and short term in its effectiveness.
"So, while we understand that the Department for Transport is promoting permanent repairs, the point remains that money would be better spent preventing potholes forming in the first place.
"The £6bn of funding pledged between 2015 and 2021 is welcome, and hopefully will be confirmed by an incoming government.
"But the truth is that although it sounds like a big investment, it will only be enough for local authorities to tread water and it will do nothing to tackle the backlog or prevent continuing deterioration."
Peter Box, transport spokesman at the Local Government Association, said: "Councils need billions, not millions, to bring our roads up to scratch.
"Every mile of motorways and trunk roads will receive £1.4m funding over the next six years compared with £31,000 per mile for local roads.
"This makes little sense given the Government's own traffic projections predict an increase in local traffic of more than 40% by 2040."
A Department for Transport spokesman said: "Well maintained local roads are vital for our transport network and it is for local councils to maintain them properly."
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