Increasing fuel duty is “the wrong choice for working people”, Rachel Reeves said today. She defied expectations that she would reverse a 5p cut introduced by the last Conservative government. As a result motorists are clear winners in this year’s budget.
She committed to invest £500m in the road network. “Potholes are a significant reminder of our failure to invest as a nation,” she said.
The chancellor also pledged £1.3bn to improve transport connections, including cash to extend the West Midlands Metro and funding for the new West Yorkshire tram in Leeds and Bradford.
She earmarked £650m for local transport investment to improve connections, mentioning areas such as Crewe and promised money to improve rail in the North. She said the government would deliver the TransPennine upgrade, which aims to fully electrify regional services by the end of the year.
We also had confirmation of the government’s plans to end funding for the £2 bus fare cap for most single journeys in England. Reeves announced £151m for a new £3 bus cap in England, running from 1 January to 31 December 2025.
The government also announced a 4.6% increase in the cost of regulated rail fares in England and a £5 hike for most railcards. The news was not announced in the Budget speech, but instead, it was published in the Treasury’s budget document.
