Utility companies and council contractors are to be charged heavily for daytime roadworks to encourage night operations

More roadworks will be done overnight under plans to charge utility companies and council contractors up to £2,500 a day to dig up streets at peak times.

The Department for Transport said that new powers would be introduced to encourage work during quiet periods after a successful pilot scheme in the southeast.

The so-called lane rental system will be rolled out across England by the end of next year. About 2.5 million roadworks are carried out each year, costing the economy £4 billion in delayed journeys and loss of productivity.

The powers, which were unveiled last year, will be targeted at utility companies that dig up roads to install, repair or maintain pipes under the street. It will urge them to carry out work between