Chancellor faced criticism for raising England\u2019s bus fare cap from \u00a32 to \u00a33 and increasing rail fares by 4.6% while retaining the 5p fuel duty cut<\/h5>\n

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\nChancellor Rachel Reeves delivered her first budget this week<\/em><\/p>\n

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\nRachel Reeves delivered her first budget this week with some positive news for public transport, including investments in rail infrastructure and the extension of England\u2019s bus fare cap instead of scrapping it. But there was also disappointment that her policies won\u2019t shift the dial in favour of public transport.<\/p>\n

The chancellor provided a list of rail commitments, including for the Trans-Pennine route, with electrification of the Manchester to Stalybridge line, and from Church Fenton to York. There was also a commitment for East-West Rail, with Bedford reached by 2030, and electrification of the Wigan-Bolton line. There was also a pledge to extend HS2 into Euston, and \u00a3650m was earmarked for local transport funding.<\/p>\n

However, the chancellor faced criticism for raising the bus fare cap from \u00a32 to \u00a33 and increasing rail fares by 4.6% while retaining the 5p fuel duty cut.<\/p>\n

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 \u00a34.2bn in lost revenue<\/p>\n

Paul Tuohy CEO of charity Campaign for Better Transport, said: \u201cBy 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 \u00a34.2bn 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. \u00a0<\/p>\n

\u201cThe 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.\u201d<\/p>\n

Tuohy added: \u201cIt\u2019s about time the Treasury reconsidered its priorities when it comes to transport.\u201d\u00a0<\/p>\n

Responding to news that rail fares will rise by 4.6% and the cost of most railcards will increase by \u00a35 in 2025, he said: \u201cRaising rail fares above inflation and hiking the cost of railcards is a kick in the teeth for people who rely on public transport, especially those on low income. Doing this at the same time as keeping fuel duty frozen sends entirely the wrong message. To tackle air pollution, congestion and climate change, we need to make public transport the attractive, affordable choice.\u201d<\/p>\n

This big\u00a0tax rise will weaken the ability of bus operators to invest<\/p>\n

Bus operators gave a mixed response to the budget. The Confederation of Passenger Transport welcomed public funding for buses to safeguard vital routes and ensure that fares across England are capped at \u00a33 instead of the previous \u00a32. There were fears amongst some in the bus industry that it might be scrapped completely at the end of the year.<\/p>\n

However, CPT warned that the chancellor\u2019s increase in national insurance contributions would weigh heavily on bus and coach operators, typically costing \u00a3800 a year for each driver. \u201cThis big\u00a0tax rise will weaken the ability of bus operators to invest,\u201d said Alison Edwards, CPT\u2019s director of policy and external relations. <\/p>\n

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\nThis article appears in the latest issue of\u00a0Passenger Transport<\/em>.<\/strong><\/p>\n

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The post Budget brings relief \u2013 and disappointment<\/a> first appeared on Passenger Transport<\/a>.<\/p>\n

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