Chancellor Rachel Reeves presented the new budget to the House of Commons on October 30, which included major announcements on investment in national transport infrastructure.

The Autumn budget states: “well-targeted transport investment is a key contributor to the government’s economic growth mission and drives productivity growth by increasing access to labour markets and unlocking areas for wider development including housing.”

Here are some major initiatives aimed at achieving these goals:

Local transport and roads

The government will invest £650 million into enhancing transport connections between towns, villages, rural areas, and major cities. There will also be an an additional £500 million for road infrastructure for 2025-26, bringing the total investment to £1.6 billion.

Public Transport

The budget extends the bus fare cap to December 2025, with a new rate of £3 aimed at funding more sustainable and high-quality bus services.

Additionally, £485 million has been allocated to Transport for London (TfL)’s capital renewals program to support upgrades, including new trains for the Piccadilly and Elizabeth Lines.

Fuel Costs

The budget will freeze fuel duty at the current rate for one year, while extending the 5p cut in fuel duty rates for an additional 12 months.

The cost of the freeze is estimated at £3 billion annually, and is expected to save the average user approximately £59.

Environmental Sustainability

The government has earmarked £200 million to expand electric vehicle (EV) charging infrastructure.

An additional £120 million has been allocated to purchasing electric vans and wheelchair accessible EVs.

Railway Lines

The budget outlines a 4.6% cap increase in rail fares set for March 2, 2025, marking the slowest rise in three years.

Rail card prices will also increase by £5, excluding the disabled persons’ card.

The budget’s short term objective is: “to meet a shortfall in revenue as travel patterns have changed, in addition to the funding it provides to operate and maintain the rail network.

The government will look to recover this shortfall to support services and ensure the railway is able to operate effectively.”

There was widespread criticism in advance of the budget that the rise in the bus fare cap would hit exactly the ‘working people’ Labour says it wants to help.

Transport costs have been rising for years, and this trend looks set to continue, but Labour is promising that increased costs will lead to better transport infrastructure in the long term.