Expanding on Campaign for Better Transport's
initial response to the Budget, Chief Executive Ben
Plowden made the following comments:
On fuel duty
"We welcome the gradual ending of the 5p fuel duty cut, which
will help rebalance transport costs and recoup billions in lost
revenue. With the price of fuel at its lowest since 2021, the
impact on fuel bills for individuals will not be large, and the
money raised can be used to benefit hard-pressed households and
the country, rather than fuel retailers. We would urge the
Government to consider an exemption for buses and coaches, given
the significance of fuel costs for bus operator overheads."
On eVED for electric vehicles
"It is fair and necessary that electric vehicle drivers make a
contribution to vehicle taxation, at a level designed to keep EVs
attractive relative to more polluting vehicles. A proportionate
per-mile charge will help avoid a huge hole in fuel duty revenue
as the transition to electric vehicles gathers pace. Our research
has shown that such a charge has high levels of support with the
public. It will also help offset the 'rebound effect' we are
seeing in Norway, where electric vehicle ownership is leading to
a 10-20 per cent rise in car trips.
"We welcome the additional incentives for EVs that the Government
has introduced, ensuring that the impact on demand will be
minimal. It is also encouraging that the Government has promised
a review of the cost of public EV charging - we would like to see
VAT on public chargers reduced from 20% to 5% to match charging
at home."
On aviation taxes
"We welcome the changes to Air Passenger Duty for passengers on
massively polluting private jets. In addition, we think VAT
should be charged on all private jet landings and take offs. We
are disappointed that the Chancellor missed the opportunity to
tax aviation fuel, which could have raised nearly £600m per
annum."
On rail fares
"We know that cost is the number one concern for people wanting
to travel by train, so it is very welcome that fares will be
frozen next year as we have been calling for. As well as helping
households with the cost of living, this will enable more people
to choose rail, reducing traffic on our roads, benefitting the
economy and helping the environment. As plans for Great
British Railways gather pace, this is a positive sign that
affordability for passengers is being given the high priority it
deserves. But this needs to be just the first step for a
root-and-branch reform of fare structure and how fare prices are
set so the highest prices can be reduced."
On rail infrastructure schemes
"We are pleased to see a commitment to fund a number of rail
infrastructure projects, including the Docklands Light Railway
Thamesmead extension, Midlands Rail Hub, Northern Powerhouse Rail
and the Transpennine Route Upgrade. Rail has extraordinary
potential to boost the economy, revitalise communities, create
opportunities, and support new housing, all without compromising
environmental goals. Indeed, the results of such projects tend to
hugely exceed expectations: half a million journeys were made on
the reopened Northumberland Line in a matter of months, and one
in every seven national rail journeys are now made on London's
Elizabeth Line."
On the Lower Thames Crossing and Heathrow
Airport
"More major roads and bigger airports will only create additional
road trips and flights, precisely when we should be encouraging a
shift to more sustainable forms of travel. Public transport
investment brings a much higher return than investment in roads
and aviation, so it is very disappointing that these schemes are
being progressed when many people still don't have the frequent
and reliable buses and trains they need for everyday
journeys."
On regional settlements and business rate retention
(including Leeds City Fund)
"With 70 per cent of journeys under five miles in length,
improvements to local transport can really change people's
day-to-day lives. That's why we welcome the continued process of
devolving more powers and funding down to the local level, and we
are pleased to see the long-term integrated settlements for the
seven Mayoral Strategic Authorities.
"Devolved authorities should have access to more revenue-raising
streams and control over how they are spent, so we welcome
progress on the Fair Funding Review, including the Leeds City
Fund and other Business Rates Retention Zones. Experience in
countries with greater fiscal devolution show that such measures
have the potential to transform transport networks."
ENDS
Notes to Editors
Read Campaign for Better Transport's full Budget Submission.
The effect of
battery-electric vehicle ownership on transport demand and
substitution between modes: Norway has seen a big
'rebound effect', where electric vehicle ownership is leading to
a 10-20 per cent rise in car trips.
Electric vehicles are already cheaper to run than petrol cars
and, even with a 3p per mile charge, they will still remain over
£1,000 a year cheaper to run [ECIU analysis].
