A Budget to ‘rebalance transport costs’
Responding to the Budget today, Ben Plowden, Chief Executive of Campaign for Better Transport, said:
“With the end of the fuel duty cut in due course, a new distance-based electric vehicle charge and freezing rail fares, this Budget is finally starting to rebalance transport costs towards more sustainable modes.
“The gradual ending of the 5p fuel duty cut will recoup billions in lost revenue which can be used to benefit hard-pressed households and the country, rather than fuel retailers. A proportionate pay-per-mile charge on electric vehicles will help restore fairness to transport taxation and avoid a looming budget black hole as the transition to electric vehicles gathers pace. 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 are also 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. We are however disappointed to see the Lower Thames Crossing in the list of transport investment priorities. Whilst we fully accept the need to meet the transport challenges of southeast England, an expensive road tunnel is not the way to do it.
“However, the Chancellor missed a huge opportunity to go further by failing to close the aviation tax loophole which exempts aviation fuel duty and allows private jet passengers to fly VAT free.”
Campaign for Better Transport has already welcomed the rail fare freeze announced on Sunday 23 November.
Ben Plowden said: “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, helping the environment, and connecting communities across the country.
“One of the Government’s six objectives for the reformed railways is that they should be affordable. 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.”
ENDS
For further information please contact the press office on 07984 773 468 (calls only no texts) or communications@bettertransport.org.uk.
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 £1000 a year cheaper to run [ECIU analysis].
- Campaign for Better Transport operates in England and Wales. Campaign for Better Transport’s vision is for all communities to have access to high-quality, sustainable transport that meets their needs, improves quality of life, reduces inequality, and supports a vibrant, productive and decarbonised economy. Campaign for Better Transport Charitable Trust is a registered charity (1101929).
