Our response to the Budget
The first Budget of the new Government provided Labour with the opportunity to set out their economic agenda. Below we set out our response.
Fuel duty frozen, but no long term fix
A surprise announcement from the day was the freezing of fuel duty, retaining the 5p cut in a move that would cost more than £3 billion next year. However, the announcement dodges the wider issue of how the Government will replace fuel duty as more and more of the vehicle fleet becomes electric.
“Today, the Chancellor confirmed an extension to the freeze on fuel duty for another year, but ignored the bigger issue of how the Government will offset the revenue loss from falling fuel duty as the UK vehicle fleet transitions to electric.” said Max Sugarman, ITS UK Chief Executive.
“As ITS UK set out in its Budget Submission, the UK needs to take a long term approach, and Government needs to outline plans for distance-based road pricing that incentivises the fairer and sustainable use of the transport network. ITS UK members have the expertise, skills and knowhow to deliver a national scheme effectively, but require the political vision and will to create a more equitable and future-ready system.”
Funding for roads maintenance, rail projects and cities
There was funding within the Budget for a range of transport projects. Over £200 million was announced for investment in 2025-26 to accelerate EV charge point rollout, the Trans-Pennine upgrade to connect York to Manchester, the deliver of East-West Rail between Oxford, Milton Keynes and Cambridge and HS2 from Birmingham to Euston were all confirmed. Plus, there was an increase of £500 million for road maintenance, in line with commitment to deliver 1 million pothole fixes, and an increase of £200 million in City Region Sustainable Transport Settlements.
Max Sugarman added: “It is positive to see increased funding for City Region Sustainable Transport Settlements, for EV charging infrastructure, rail projects and road maintenance across the UK. Transport technology has a key role to play in all these areas and in supporting a greener, more efficient and seamless transport network. Whether through better roadside technology, demand responsive transport, mobility as a service or the more effective use of data, we look forward to working with the Government to deliver its ambitions for transport.”
What wasn’t in there?
In ITS UK’s Budget submission we set out five key asks for Government. As well as setting out a roadmap for mobility pricing, we called for a renewed focus on technology for the motorway network, a change in VAT for Demand Responsive Transport, a strategic focus on integrated transport and a different approach to procurement for local authorities to procure transport technology.
Interested if recieving our Members-only Budget Briefing? Sign into the Members Area here or email contact@its-uk.org to receive your log-in credentials.