In response to the 2024 Autumn Budget, leaders from across the UK transport sector have voiced a range of perspectives on chancellor Rachel Reeves’ announcements, which include a freeze on fuel duty, increased investment in electric vehicle (EV) infrastructure, and funding allocated for road maintenance.
These measures, set against the backdrop of rising environmental concerns and the ongoing push for decarbonisation, have sparked diverse reactions, with industry experts weighing the long-term implications for sustainable transport and urban mobility.
Here, City Transport & Traffic Innovation Magazine gathers more than 20 expert opinions to provide an in-depth look at how these budgetary decisions are likely to influence the sector’s progression towards a greener, more resilient future.
Ann Carruthers, President, ADEPT
This budget includes several encouraging areas of support for local authorities and the communities they serve. However, it also raises further questions and challenges. Any additional money for highways is welcomed, yet the investment still falls far short of addressing the significant backlog. We welcome the additional investment in buses and the rollout of active travel and electric vehicle charging infrastructure, although again, this is unlikely to deliver on local authorities’ aspirations for connected transport networks.
However, further detail is needed on the local government settlement and how the funding increases will specifically support local authorities in delivering essential services. Local authorities have endured years of austerity and budget cuts, leaving public services at a critical breaking point: recovery will require sustained, long-term investment to rebuild the essential services that communities rely on. It was unfortunate the government did not take the opportunity to revise its position on fuel duty, which could have further helped ease the burden on the public sector purse.
Sir John Armitt, Chair, National Infrastructure Commission
Linking Old Oak Common and Euston is fundamental to the viability of HS2 so we welcome funding for the tunnel connection, which should help secure the maximum economic benefit from the investment already made in the project. The question of how to boost connectivity and capacity beyond Birmingham remains to be answered, and the National Infrastructure Strategy should set out how government plans to address this long-term challenge. Moreover, an effective road network is vital for connecting people and places, but our roads are under pressure from usage and the impacts of climate change; this additional funding will be welcomed by drivers if it speeds up the prospect of smoother journeys and fewer delays. But it should be followed up by a pipeline of enhancements that target the underperforming parts of the road network which currently inhibit connectivity.
John Hutton, Chair, Association of Infrastructure Investors in Public Private Partnerships
The chancellor’s commitment to public investment in new infrastructure is to be welcomed. However, it will be impossible to get the scale of investment needed to get Britain building again without private financing. The UK is one of the only countries in the developed world that doesn’t use public private partnerships to build new schools, hospitals and transport. We need a modern partnership between the private and public sectors that addresses the issues of the past if we’re avoid another lost decade of British infrastructure.
Mark Nicholson, CEO, VivaCity
It’s great to see a commitment to longer-term, increased local authority budgets. Local authorities have faced years of feast-or-famine funding as different initiatives came and went, so having a more stable baseline will enable them to think more strategically and invest in the right technology. This stability in public sector funding is also a boost for the GovTech sector, as it enables local authorities to plan for long-term technology investments that can drive substantial improvements and efficiencies over time.
Jonathan Edwards, EMEA Market Development Leader, GHD
After the recent uncertainties surrounding HS2, I welcome the government’s commitment to extending the line to Euston. Delivering regional growth and intercity connectivity is essential and pivotal to shaping our country’s future. It is crucial that the government now sticks to this plan and fully commits, with greater control over its delivery. However, the budget did not address how we can go beyond this plan to improve infrastructure across the country. Transport in the UK only works if the rail industry does, and it should start with more radical reform and funding for change and delivery. The chancellor has yet to reassure the industry that transport is at the top of the agenda. We need policy and funding from the government to enable a long-term plan for our critical national infrastructure. The government can’t afford to hit the brakes and must enable the private and public sectors to work at speed to deliver its transport goals.
Jason Prince, Director, Urban Transport Group
A ‘billion for buses’ is welcome funding – ensuring earners and learners can get to work and college. Also welcome is the commitment to City Region Sustainable Transport Settlements. Alongside greater devolution, these measures will enable our member transport authorities and their mayors to make the best decisions for their local communities and continue to invest in good transport services and infrastructure.
Anna Krajinska, UK Director, Transport & Environment
Increasing the first year vehicle excise duty differential between polluting and electric cars, for which the UK currently has one of the worst differentials in Europe, is exactly the right move. The future is electric and tax policy needs to reflect that. Meanwhile, extending preferential rates for electric cars through the UK’s very successful Benefit-in-Kind policy is a smart decision to sustain EV demand for the years to come. A £2bn investment in the automotive sector is a boon to a crucial manufacturing arm of the UK and will help secure the gigafactories that will be the backbone of the UK’s burgeoning battery industry, which will deliver growth and green, high quality jobs.
Ian Johnston, CEO, Osprey Charging Network
It’s fantastic news that the government is maintaining tax benefits for working people who lease or buy electric cars, as these are vital to incentivising more consumers to drive electric and to the continued growth of ‘private driver’ EV sales. We look forward to seeing the government maintain a strong ZEV mandate this autumn to allow the UK to truly realise the multi-billion pound opportunity that the e-mobility sector can bring to the UK.
Mike Nakrani, CEO, VEV
The government’s prior commitment to reinstating the 2030 ICE ban was a positive step to help realise the UK’s net zero targets. It’s good to see that pledge becoming reality along with the funding and incentives measures announced in the Autumn budget. Continued support is critical to achieve the necessary electrification transition in our country. Fleets are leading the way in the shift to EVs, and the zero-emission vehicle (ZEV) mandate will help drive this transition, but carrots are needed with the sticks in the shape of infrastructure funding and incentives. With 10% of the UK’s total carbon emissions coming from fleets, the sector represents a major win in the quest for net zero. By supporting the implementation and maintenance of electric fleet operations, the Government can accelerate our progress towards the nation’s sustainability objectives.”
Dr Kieran O’Regan, Co-Founder and COO, About Energy
Maintaining tax incentives for EV purchases and providing over £200m to accelerate public charging infrastructure rollout demonstrates the government’s ongoing focus on enabling wider consumer adoption of zero-emission vehicles. Importantly, the budget also recognises the strategic importance of building up the UK’s battery manufacturing capabilities. With dedicated funding for gigafactories and additional support for automotive R&D, the government is taking steps to nurture the country’s ecosystem. Sustaining this level of investment will be crucial for the UK to solidify its position as a leader in electric mobility.
Jonny Combe, President & CEO, PayByPhone
While the 2024 Autumn budget was expected to increase financial pressures on drivers, it’s encouraging to see that UK chancellor Rachel Reeves has decided to freeze fuel duty and maintain the 5p cut, ensuring no higher taxes at the petrol pumps next year. However, existing financial pressures remain, and there’s still more to be done to help drivers alleviate some of their fiscal burdens. As cost-of-living pressures continue, it is essential that the government support and signpost practical options, such as journey planning solutions, to empower drivers in navigating the evolving driving landscape and manage rising costs.
Sean Turner, Senior VAT Manager, Menzies LLP
The budget has delivered a mixed picture for the transport and logistics sector. On the positive side, the freeze in fuel duty is a relief for road haulage businesses. Any increase would have inevitably rippled through the entire supply chain, pushing up costs and impacting both businesses and consumers. By keeping fuel duty steady, the government has shown awareness of the sector’s reliance on stable fuel pricing. However, the rise in Capital Gains Tax, along with upcoming changes to Business Asset Disposal Relief, has raised concerns among the many owner-managed and family-run businesses within the sector. The additional increases to employment costs through the National Living Wage and employer National Insurance contributions will also place pressure on businesses already navigating a competitive labour market and intensifying operational expenses. Finally, the investment in railway infrastructure and the retention of incentives for electric vehicles as company cars reflect some forward-thinking steps toward a greener, more connected transport sector.
Barney Goffer, UK Product Manager, Teletrac Navman
The government was very clear that this was going to be a tough budget with more taxation than previously mooted and it was. While the frozen fuel duty is a pleasant surprise, the new regulations around National Insurance Contributions (NIC) are going to be a challenge for many fleets. Kickstarting economic growth relies on multiple sectors operating efficiently and cost-effectively – the transport sector being a major factor in this. While the decision for employers to pay NIC on anything over £5,000 when previously it was £9,100 could help raise a large amount, it means increased pressure for fleets, especially the transport sector which is already running on low margins to absorb. The obvious thing to do would be to pass the rise in tax onto the customer but in a highly competitive transport sector there’s always someone willing to run at even lower margins.
Mark Cracknell, Programme Director, Zenzic
The budget featured several announcements that will be warmly welcomed by the nation’s connected and automated mobility (CAM) industry. We have seen £2bn committed to help grow the nation’s automotive sector over the next five years and help manufacturers invest in advanced, greener technologies. The confirmation of £500m to improve roads and end the pothole crisis – which we’ve already seen can be supported by a pothole filling robot developed right here in the UK – will ensure our roads are fit for purpose as we seek to capitalise on the incredible opportunities that embracing connected and automated vehicles will yield. The National Wealth Fund, which will ringfence over £70bn to be invested in businesses in sectors including automotive and tech, will provide a significant boost to those firms already investing in bringing new innovations to market.
Rebecca Lush, Roads and Climate Campaigner, Transport Action Network
The budget was a mixed bag, with some good decisions, but some odd ones too. We are delighted the chancellor has scrapped several harmful road schemes such as the A5036 through Rimrose Valley Country Park, which was vigorously opposed by Save Rimrose Valley, who we have supported, and the A358 in Somerset, which would have severed many communities. We were disappointed the A57 Link Road scheme went ahead in the Peak District, as this will only move traffic jams further along, increasing pressure for more roadbuilding in the National Park. Likewise the decisions to approve some of the A47 schemes in Norfolk will only increase traffic and carbon emissions. These are just expensive sticking plaster solutions, which divert scarce funds away from public transport. We are always pleased to see more money go towards roads maintenance as this is urgently needed and benefits all road users. However, it was disappointing to see fuel duty being frozen yet again, whilst the bus fare cap was increased 50%. This sends the wrong message for a government committed to modal shift.
Xavier Brice, CEO, Sustrans
Amid a tight spending landscape, it’s great to see investment in transport. Alongside investment in buses, rail, and fixing potholes and pavements, we welcome the additional £100m investment in cycling and walking paths, reversing previous cuts. This will boost the economy, improve people’s health and help us all get around.
Sarah McMonagle, Director of External Affairs, Cycling UK
Credit where credit’s due; the chancellor has helped to recoup funding for active travel that was cut in March 2023 by committing an additional £100m to cycling and walking infrastructure. However, much greater investment is needed if the government is to achieve its ambitious health and economic growth missions. We know that for every £1 spent on cycling and walking schemes, £5.62 worth of wider benefits are achieved. This far surpasses the return on investment for road building. We were disappointed to see that fuel duty has been frozen yet again, which means the cost of driving is not increasing in relative terms. Research suggests that in the past, savings from the fuel duty freeze have not been passed down to consumers. Revenue raised from an increase in fuel duty could make public transport more affordable, and cycling and walking much safer through more investment in active travel.
Asif Ghafoor, CEO, Be.EV
We welcome the news about the maintenance of incentives for electric vehicles in company car tax which account for 40% of all vehicles on the road. This is the easiest and quickest way to accelerate the EV transition is to get companies and employees to switch to EVs en masse. The £2bn investment into the EV sector manufacturing is also welcome. There’s no need to spend £200m on charging – key chargepoint operators in the private sector have already committed £6bn to drive the sector forward. Anything which gives us more confidence to deliver this funding is welcome. The only way to speed up the EV transition is to get people to feel good about EVs again. We don’t need money but the next thing the government to do is to finally bring the 2035 ban back to 2030 as promised and get the transition going even faster.
Nicholas Lyes, Director of Policy and Standards, IAM RoadSmart
Increasing vehicle excise duty on all but zero-emission vehicles in the first year will hit those buying new conventional vehicles in the pocket. A better solution to incentivise the take-up of electric vehicles would have been to cut VAT on the sale of new electric vehicles with list price of £40,000 and under. Furthermore, while any additional funding to fix our crumbling and potentially unsafe roads is welcome, with an one-off repair bill of over £16bn, the amount promised by the chancellor is a drop in the ocean of what is required. Given the risks that potholes pose to both drivers’ wallets and riders’ safety, we need a longer-term approach to funding so councils can prioritise resurfacing work where it is most needed.
Tony Cheetham, Founder & Managing Director, Shipster
As an SME, the increase in employers’ NI contributions will be a hard pill to swallow for us. As a growing tech company wages are nearly 75% of our entire budget. The promise to fully fund the electrification of the lines between Manchester and Leeds is extremely good news. This project is decades late. And the promise to fund the tunnel work to get HS2 straight into Euston is amazing news for companies like us who work in the capital regularly.
Om Shankar, General Manager & Vice President, Konect
The government has previously stated its aim to accelerate the rollout of electric vehicle charging, but the budget falls woefully short in this area. We need a 500% increase in public EV chargers between now and the end of the decade to meet our stated goals and projected EV demand. Consultation is one thing, but sooner or later the government needs to show its hand. Some urgent action and lateral thinking on location of chargepoints and support for operators is needed.
Max Sugarman, Chief Executive, ITS UK
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. 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. 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.
Paul Tuohy, CEO, Campaign for Better Transport
By choosing to keep the 5p fuel duty cut and continue freezing fuel duty for another year, the chancellor has committed to costing the Treasury a further £4.2bn in lost revenue. This revenue could have nearly quadrupled support for English bus services, benefitting millions of passengers and preventing vital services from being cut. The government talks of delivering on the environment yet undermines itself by failing to adequately tax our most polluting forms of transport and support the most sustainable. It’s about time the Treasury reconsidered its priorities when it comes to transport. However, it is right that High Speed 2 reaches Euston, and we are pleased with the announcement made. Connecting HS2 to London for connections to the European continent and beyond is vital to unlock all of the economic growth that the scheme offers. With a West Coast Main Line bursting at the seams, it is essential that government now examines possible replacements for HS2 north of Birmingham to Manchester, and to Leeds, to expand rail capacity and improve connectivity across our country.
Achievements and innovations in urban transport and mobility will be celebrated at the third annual CiTTi Awards, which will be held on 26 November 2024 at De Vere Grand Connaught Rooms in London. Visit www.cittiawards.co.uk to learn more about this unmissable event for the UK’s transportation sector – and to book your table!
