Campaign for Better Transport’s full response to the Budget

27 November 2025

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, helping the environment, and connecting communities across the country. 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

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 £1,000 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).