The decision to cut the road maintenance budget will cost the taxpayer more in the long term, a committee of MPs has found.

Motorists will also have to pay more to fix their cars because essential repairs are not being carried out on the country's roads, the Public Accounts Committee said.

Margaret Hodge, the committee's chairman, said there were still many "unanswered" questions about the DfT's budget cuts.

She said: "The department doesn't fully understand what impact its cuts to road maintenance will have on the state of the UK's roads.

"My committee is concerned that short-term budget cutting could prove counter-productive, costing more in the long term as a result of increased vehicle damage and the higher cost of repairing the more severe road damage."

AA president Edmund King said: "All road users, whether cyclists, motorbike riders, motorists or truck drivers will be concerned at any prospect of deteriorating roads.

"In the past we have applauded the Highways Agency for the efficient maintenance of motorways and trunk roads which generally are kept in a better state than local roads. Potholes can blight roads and are particularly treacherous for those on two wheels."

He went on: "The AA has seen an increase in the number of call-outs due to tyres, suspension and steering problems which could all be linked to potholes. As drivers are paying billions of pounds in various motoring taxes, they expect to be able to drive on main roads bereft of potholes.

"The last thing we want is a vicious circle where the declining state of roads leads to more claims for compensation due to damage and injury, which in turn means less spending on roads."