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Operational note: Transport and pre-budget report

21 November 2008
Alistair Darling will give his pre-budget report on Monday afternoon.

Transport is likely to feature in the pre-budget report in various ways. On taxation:


  • Vehicle Excise Duty: Will the Government continue with the planned increases in first year VED, including the unpopular backdating to 2001?
  • Fuel duty: Will the Government go ahead with its postponed 2p rise now that oil prices are falling?
  • Air transport: Will Air Passenger Duty be increased or replaced by a new per plane tax?

Or will the Government reduce all these taxes as part of its tax cutting agenda?


On spending, will transport feature in any “fiscal stimulus”? If so, will this include:


  • Bringing forward/ confirming new rail projects (Crossrail, electrification)?
  • Postponing/reducing the big fares increases just announced for the new year?
  • More highway maintenance?
  • More bus funding?
  • More local transport investment?
  • More roads or airports (a decision on a 3rd runway at Heathrow is due next month)  

We are available to comment on all these issues on Monday.


We run a transport taxation group which co-ordinates a submission to the Treasury before budgets and pre-budget reports -- our most recent PBR submission was in September 2008.