Potential impact to transport of the upcoming budget
Andrew Stephens
Senior Account Manager @ Cohesive | End-to-end service integration, transformational outcomes in transport
The upcoming UK budget presents some critical scenarios for transportation policy, each reflecting different priorities and strategies:
1. Reallocation of HS2 Funds (Network North Plan)
With £36 billion from the cancellation of HS2 Phase 2 being reallocated, significant portions will be directed to alternative transport projects. These include expanding Northern Powerhouse Rail, local road maintenance, and boosting local transport outside major cities. This scenario prioritises local infrastructure, road repairs, and regional transport improvements to address long-neglected local transport issues.
2. Green Transition and EV Incentives
Another possible scenario is promoting electric vehicles (EVs) and green transport solutions. While the spring budget lacked direct incentives for EVs, upcoming measures may enhance the EV charging infrastructure and shift towards sustainable transport in line with the UK’s net-zero goals. This would include significant investments in public EV charging points and subsidies for electric cars.
3. Transport Devolution and Local Control
A further scenario involves the devolution of transport powers to local authorities. Under this model, local leaders would have more control over transport funding, enabling them to invest in projects tailored to their regions' specific needs, such as public transit, active travel (cycling, walking), and integrated transport systems. This aligns with the broader political trend of decentralising decision-making and promoting localised transport solutions.
Global Comparisons:
Globally, similar reallocations and policy shifts can be observed:
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These comparisons highlight a broader global trend toward sustainable, decentralised transport solutions, aiming to reduce carbon emissions while improving local mobility
UK Transport Budget Scenarios for 2024
Here is the comparison of the three UK transportation budget scenarios for 2024:
Each scenario shifts resources toward different priorities, with regional transport and green initiatives receiving varying emphasis.