The Department for Transport wants to curb delays

A decision by Mr Justice Bell on a test case means utility companies and others face massive "lane rental" charges of up to �1,000-a-day for every hole in the road in Middlesbrough and the London Borough of Camden.

Although the charging system currently only operates in the two areas, the Department for Transport is considering extending the scheme nationally.

The move would cost contractors' millions of pounds every year.

Declaring the regulations valid on Friday, Mr Justice Bell said any cash made by local authorities would be devoted to improving transport facilities.

In the High Court, British Telecommunications Plc (BT) argued it did not have to pay a �12,100 "lane rental" bill from Camden because the regulations under which the charge was made were "unlawful".

'Minimise disruption'

The company claimed the regulations effectively "created a tax for occupying the highway", unrelated to any blame or fault on a contractor's part.

Charges have long been levied on contractors who cause traffic disruption through "unreasonably prolonged" road works.

But the new regulations represent a radical extension of the principle, so that contractors must now pay a daily charge for road works even if they are carried out as quickly as possible.

Mr Justice Bell said the Department for Transport's "sole motive" in imposing the charges was the "minimisation of disruption".