Labour is promising to fix one million potholes every year if the party is elected on 4 July.
The party estimates that pothole damage can cost drivers almost £500, with the average damage worth £250.
Under the plans, local authorities would be given funding to carry out the repairs, while changes to the planning system would help ensure upgrades are delivered on time and on budget.
Labour said fixing the potholes would be funded by delaying the A27 bypass and using the estimated £320m cost on repairs across the country.
The party said it would also call in regulators to crack down on the causes of soaring costs.
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It comes after Rishi Sunak launched the Tory manifesto today, reiterating the pledge to create a dedicated £8.3bn fund to “fill potholes and resurface roads”.
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The fund would form part of the £36bn investment in “local roads, rail and buses to drive regional growth” that was made available after the prime minister cancelled the second phase of HS2.
But shadow transport secretary Louise Haigh said the Tories had “failed” drivers and that Britain’s roads were “plagued with potholes”.
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“The Conservatives have left Britain’s roads plagued with potholes and have sat back as car insurance costs have spiralled out of control,” she said.
“Labour is the only party truly on the side of drivers. Our plan will fix up to a million more potholes every year, saving drivers hundreds of pounds in lower repair costs, and will crack down on soaring car insurance costs.
“We will make our roads safer for all who use them and remove the barriers which bog down our planning system, speeding up infrastructure improvements and cutting costs for taxpayers.”
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In March, the annual Alarm survey by the Asphalt Industry Alliance (AIA) found that roads in England and Wales are at “breaking point”, with pothole repairs at an eight-year high.
It found that local authorities expect to fix two million potholes in the current financial year – up 43% compared with the previous 12 months.
The RAC also recently branded the state of UK roads “miserable” after vehicle breakdowns rose by 9% in the last year due to potholes.
The company reported some 27,205 callouts to breakdowns due to poor road surfaces received in the year to the end of March – up from 24,906 during the previous 12 months.
