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What will the Budget mean for transport?
Hello Supporter
In two weeks' time, Chancellor Rachel Reeves will deliver her first Budget. Here are our five Budget priorities for transport.
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#1: Keep public transport affordable
Millions of us who rely on buses and trains are likely to see our fares go up next year, yet keeping public transport affordable helps boost the economy and reduces carbon emissions. To keep public transport fares affordable, we want a rail fare freeze for 2025 and an extension of the current £2 single bus fare cap.
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#2: Tax cars fairly
To send the right pricing signals and raise the money needed to invest in public transport, we are calling on the Chancellor to end the 5p cut in fuel duty - something which has not been passed onto motorists anyway - and to reinstate the annual inflation-linked rise in fuel duty. We also want to see a pay-per-mile charge for zero emission vehicles in lieu of fuel duty (it should be cheaper to drive a zero emission vehicle than a more polluting vehicle, but we think it is fair that zero emission vehicle drivers should pay a share).
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#3: Tax domestic aviation and private jets
Last year, Air Passenger Duty (APD) on domestic flights was halved. To address the carbon costs of domestic aviation and make rail travel a cheaper alternative to flying, we want the Chancellor to reverse that move and introduce a kerosene tax on non-lifeline domestic flights.
To address the soaring climate costs of private jets, we want to see a 'super rate’ of APD for private jet passengers and for Value Added Tax (VAT) to apply to all private flights.
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#4: Invest in public transport infrastructure schemes
The Chancellor can address the £22 billion black hole and still build the infrastructure needed to deliver long term growth by prioritising investment in high return public transport projects, rather than low return, carbon intensive roads. We want to see the Government examine possible replacements for HS2 north of Birmingham; progress Northern Powerhouse Rail and Ely and Haughley Junction upgrades; and for light rail schemes like the Leeds tram, KenEx (linking Kent and Essex in place of the Lower Thames Crossing) and the DLR extension to Thamesmead to be given the green light.
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#5: Create a single funding pot for local transport authorities
To ensure local authorities can deliver improved bus services through the Better Buses Bill, we are calling for an enhanced funding package for local transport authorities with additional funding for authorities that have received less in recent years. We also want to see all bus-related funding for local authorities transferred from the Ministry of Housing, Communities and Local Government to the Department for Transport, and ensure it is ringfenced for bus services.
Whatever gets announced at the end of the month, you can be sure we'll keep advocating for sustainable transport.
All the best,
Alice
P.S. Thank you to everyone who signed our virtual postcard asking Royal Mail to keep sending our mail by rail. We'll be delivering a giant postcard with all 3,600 of your signatures on to Keith Williams, Chairman of Royal Mail, at its London headquarters on Friday 25 October. If you would like to join us, please email us using the link below.
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