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Cycling UK lauds Rachel Reeves for recouping additional £100 million for cycling & walking in Autumn Budget, but “disappointed” with another fuel duty freeze

Critics of the new Labour budget, including Green Party co-leader Carla Denyer, have expressed frustration at the discounted fuel duty, with some describing the funding allocated to cycling as a “drop in the ocean”

Labour Chancellor Rachel Reeves’s first budget delivered today has been met with mixed reactions from active travel campaigners and charities, with Cycling UK giving the new administration credit for “recouping additional £100 million funding for cycling and walking infrastructure”, while at the same time, saying it is “disappointed” to see fuel duty frozen yet again, which could further incentivise driving.

While presenting the Autumn Budget, Reeves didn’t spare any mentions for active travel, however, the full document says that the budget is intended to provide “increased investment in local roads maintenance and local transport” by “providing an additional £100 million investment in cycling and walking infrastructure in 2025-26, to support Local Authorities to install cycling infrastructure and upgrade pavements and paths”.

The budget also aims to provide a nearly 50 per cent increase in funding for local roads maintenance to fix an additional one million potholes across England each year.

However, the fuel duty is also set to be frozen, extending the temporary 5p cut for one year “to support hard-working families and businesses” and “save the average car driver £59 in 2025-26”.

> Cycling UK and British Cycling urge Labour to "significantly increase" active travel budget to 10% of transport spending

Responding to the Chancellor’s Autumn Budget statement and how it relates to transport and active travel, Sarah McMonagle, director of external affairs at Cycling UK, said: “Credit where credit’s due; today the Chancellor has helped to recoup funding for active travel that was cut in March 2023 by committing an additional £100m to cycling and walking infrastructure.

“However, much greater investment is needed if the government is to achieve its ambitious health and economic growth missions. We know that for every £1 spent on cycling and walking schemes, £5.62 worth of wider benefits are achieved. This far surpasses the return on investment for road building.

“We were disappointed to see that fuel duty has been frozen yet again, which means the cost of driving is not increasing in relative terms. Research suggests that in the past, savings from the fuel duty freeze have not been passed down to consumers. Revenue raised from an increase in fuel duty could make public transport more affordable, and cycling and walking much safer through more investment in active travel.

“Increasing investment in walking and cycling stands to benefit us now and in the future. There’s still time to take bold action, and we will continue to impress upon the government the potential for cycling to transform our communities into greener, healthier and more prosperous places to live.”

> “A backward move” – Government slashes active travel budget for England

Yesterday, Cycling UK and British Cycling, along with a host of academics, health groups and cycling organisations wrote to Reeves calling for active travel funding to be increased to 10 per cent of the overall transport budget.

The organisations concluded: "With the right commitment, together we can transform our villages, towns and cities into healthier and more liveable spaces. Investing in walking and cycling won't just help to balance the budget — it would be a promise to prioritise our health, our economy, and our planet.”

London cyclists (Ayad Hendy via Unsplash)

Xavier Brice, CEO of walking, wheeling and cycling charity Sustrans said:  “Amid a tight spending landscape, it’s great to see investment in transport. Alongside investment in buses, rail, and fixing potholes and pavements, we welcome the additional £100 million investment in cycling and walking paths, reversing previous cuts. This will boost the economy, improve people’s health and help us all get around.”

Transport journalist Carlton Reid wrote: “Budget provides additional £100 mn for cycling and walking infrastructure in 2025-26. This is NOT the "unprecedented level of funding" that Transport Secretary Louise Haigh told Laura Laker was coming. Meanwhile, motorists get yet another fuel duty freeze. Climate change anyone?”

In August, newly appointed Transport Secretary Louise Haigh had pledged “unprecedented levels of funding” in cycling as the Labour party got to work after its landslide election victory earlier in the summer.

Meanwhile, Green Party co-leader and MP for Bristol Central Carla Denyer expressed her frustration at the discounted fuel duty on social media. “Fuel duty staying frozen and discounted for another year, at 10x what it would have cost to keep the £2 bus fare cap, Make it make sense,” she said, referring to the Prime Minister’s announcement that the bus fare cap will increase by a pound in England at the end of this year.

Trade consultant Mark Sutton said: “£100 million extra for walking and cycling in 2025-26 budget for active travel. It’s a drop in the ocean accounting for the reality of change needed & urgency, plus the fact that potholes alone got £500m extra, but at least it’s not a cut.”

In other news from the 2024 Autumn Budget that could affect the UK’s bike shops adversely, Reeves also announced that the business rates relief would drop from 75 to 40 per cent, while National Insurance contributions from employers would increase from 13.8 to 15 per cent from 2027.

The £100 million additional funding comes after the former Conservative government decided to slash the budget for active travel schemes in England outside London in March last year, in what was described as “a backward move” by the Walking & Cycling Alliance (WACA), which estimated that two-thirds of previously promised funding will be lost, making it “impossible” to meet Net Zero and active travel targets.

Adwitiya joined road.cc in 2023 as a news writer after graduating with a masters in journalism from Cardiff University. His dissertation focused on active travel, which soon threw him into the deep end of covering everything related to the two-wheeled tool, and now cycling is as big a part of his life as guitars and football. He has previously covered local and national politics for Voice Wales, and also likes to writes about science, tech and the environment, if he can find the time. Living right next to the Taff trail in the Welsh capital, you can find him trying to tackle the brutal climbs in the valleys.

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42 comments

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biking59boomer | 3 weeks ago
0 likes

The Government could have used the money raised by a 10p rise in duty to keep the fares cap to £2 or at least to limit the rise to under £3. The financial arguments for a duty increase were unanswerable not to mention the environmental ones. I had hoped for a more environmentally friendly attitude from Labour. Sadly I was mistaken. 

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Simon E replied to biking59boomer | 3 weeks ago
1 like

biking59boomer wrote:

I had hoped for a more environmentally friendly attitude from Labour. Sadly I was mistaken. 

This Labour government is not interested in the environment. Only a minority of them give a shit about issues such as road safety, air quality or active travel.

Putting the 5p back is the minimum they could have done; and it could be justified as reversing a temporary cut. But they have friends in high (fossil-fuelled) places and despite the thumping majority know that they will be 'held to account' by the media in a way that the Tories never were.

Or more accurately, they will be punished severely if they go against the wishes of the magnates, non-doms etc that control the media (and I fear that includes the BBC nowadays). And there are plenty of lobbyists on behalf of fossil fuel interests at work:

https://www.desmog.com/2024/07/31/new-mps-worked-for-oil-and-gas-lobbyists/

https://www.globalwitness.org/en/campaigns/fossil-gas/new-labour-mps-tak...

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Born_peddling | 3 weeks ago
1 like

Easy fix petrol pump meet industrial split pin = reduction in operational pump and I give it 6-8 months before they back out of the capped travel fair ... Which still isn't a big help for those with travel restrictions due to physical health I've two wheelchair using neighbours and they've both stated they haven't used public transport since they started using them as there's never room and the drivers are reluctant to get out and put the ramp down. Yet these are the people Starmer wants to put back in work? Clearly working for the government means you need a common sensectomy.... Numpty thinking of what?!

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chrisonabike replied to Born_peddling | 3 weeks ago
3 likes

Problem is if we don't address the amount - or prioritisation - of private motor transport we maintain a situation where "no-one uses the buses" so it "doesn't make sense" to direct resources there.  (Same goes for cycling of course).

Because buses are a) going to be less reliable (stuck in traffic) and b) going to be stumped for custom because they're unreliable, have low coverage and low frequency (because there's not enough demand).

Of course as motor traffic increases it tends to be no quicker than using public transport - assuming there is any...

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FionaJJ replied to chrisonabike | 3 weeks ago
3 likes

Exactly. I have some sympathy for the 'but we don't have any/many buses' commentary on the £2/3 bus fare cap, but the best way to improve, or at least maintain, bus services is for people to use them. The bus fare cap seemed to be working well in at least some parts of the country for boosting certain rural routes.

Unfortunately the cap was introduced as a temporary measure, so not much incentive for bus companies to plan for long-term increased uptake of buses. Extending in some form is clearly better than nothing, and the £3 cap is presumably still worth something for many longer, rural routes, and would constitute good value for those who can afford a £6 return. My preference would be to keep the £2 cap, and use revenue from fuel duty to support it (and much, much more), but if they felt pressure to reduce the subsidy then a £2.50 cap would mean a return wouldn't just save £1 per trip, but keeps it as no more than £5, which psychologically feels a lot cheaper than £6.

Ideally the Chancellor would have kept the £2 cap, and used some of the other monies raised from fuel duty to give to councils so they could subsidise AND ADVERTISE enhanced services in areas that are stuck with just one or two buses per day. 

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quiff replied to Born_peddling | 3 weeks ago
1 like

Born_peddling wrote:

I've two wheelchair using neighbours and they've both stated they haven't used public transport since they started using them as there's never room and the drivers are reluctant to get out and put the ramp down.

My instinctive reaction to this was "aren't the ramps all deployed at the push of a button now?" but I guess that's quite a metrocentric view.

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mattw | 3 weeks ago
4 likes

Has it been noted here that the tax break on large Tonka Trucks (ie crew cab pickups payload >1 tonne) has been removed, and they will now be taxed as family rather than commercial vehicles, and will not provide illicit family transport. So the financial preference will now be smaller Tonka Trucks or something else such as a trailer or a small van.

Looking at the thread on Pistonheads, members there are not too unhappy about it.

Larger high emissions vehicles have also been hit quite hard in the first tax year, which will also work to keep limits on how many people get Tonkas.

The other one I want is to stop the Usonian deathtrap light truck builders from mass exploitation of the Individual Vehicle Approval loophole, which is one of their current targets. That needs new IVA vehicles to be required to meet UK safey standards.

Not enough, but good baby steps.

The non=uprating of Fuel Duty is the most terrible failure in a very political budget which generally starts in most of the correct directions imo, where RR went out of her way to spike potentian Tory guns. IMO next year' budget will be larger, with all kinds of strategic reforms needed.

Suburban men with micropenises and terminally out of self-control Drunk Driver Jordan are obviously upset, but I'm happy with that.

But that's another couple of Rishi Sunk save-my-butt Hail Mary Passes that have been reversed.

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eburtthebike | 3 weeks ago
1 like

I wonder if the events in Spain will start to shift perceptions?  For once, the msm is blaming climate change, but this might lead to more emphasis on electric cars rather than the much preferable Active Travel.

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wtjs | 3 weeks ago
3 likes

I, too, deplore the kowtowing to the motoring/ Torygraph/ Mail/ Sun etc. lobby. Now was the time to bang 10-20p /L on fuel, and ignore all the taxi drivers etc. complaining about the end of the world. They're all voting Tory anyway.

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biking59boomer replied to wtjs | 3 weeks ago
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Taxi drivers are more likely to vote Reform than Tory. As for kowtowing to the motorists and the right wing press I totally agree wih you. Reasoned argument has failed to get the petrolheads to change their ways and embrace active travel. Unnecessary short term journeys are just as numerous, worse now schools are back and the school run has restarted. 10p on a litre would have brought the average UK price to 145.99 and made some of them think about how much they drive.

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chrisonabike replied to biking59boomer | 3 weeks ago
3 likes
biking59boomer wrote:

....10p on a litre would have brought the average UK price to 145.99 and made some of them think about how much they drive.

I think we're far beyond that. Because *I HAD to drive*.

Why? That's the main mental tool we have for "doing things".

So that needs changed, but without different "things" (shopping, taking the kids "safely" to school, doing activities "in reach" of say 30 minutes' drive) OR some alternative transport which not only has to meet certain minimum requirements * but ALSO has to be relatively better than the car...

... then just adding cost will simply get you protests, if not riots - but certainly your time in power shortened!

* Necessary but not sufficient: feels safe, is convenient, is flexible AND reliable (unlike much public transport ATM), seems cheap per journey **, doesn't make you an "other" / lower your status like cycling does in the eyes of some, is a social activity eg. you can do it side-by-side with your family etc.

** car is costly but once the tax etc is paid (which you can't avoid - well, outside of Lancs...) the fuel per trip seems cheap compared to eg. train ticket for the journey - assuming there is a station near either end!

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wtjs replied to chrisonabike | 3 weeks ago
1 like

car is costly but once the tax etc is paid (which you can't avoid - well, outside of Lancs...)

In fact, Lancashire Constabulary is only too keen to declare that VED evasion is nothing to do with them. This is why WU59 UMH, which I have bored you with many times, is only a month short of achieving 7 years of glorious tax-free motoring despite being reported to LC and DVLA many times and often spending whole nights, New Year's Day etc. parked outside the Eagle and Child only 150 yards from Garstang Police Station. DVLA must be largely staffed by ex-LC coppers, because they're a load of useless tossers as well- their own database shows them numerous vehicles in the Garstang area alone without VED for years, but which are getting regular MOTs (don't know why, because they must know that LC regards MOTs as optional extras and simply refuse to do anything about MOT evasion either).

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Andrewbanshee | 3 weeks ago
4 likes

I wonder how disappointed Louise Haigh is with this budget? Fuel duty freeze, so no change there. Has nothing to do with poor working people. £100 mn won't pay for anything of note to get more people cycling. Probably not enough to improve our current shambles of a network.
Hugely disappointed with this.

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muhasib replied to Andrewbanshee | 3 weeks ago
1 like

I guess Louise Haigh is still on the naughty step with Keir Starmer over calling P&O a rogue operator just before his prestigious investment conference, not really how a minister should act just before a budget when they want extra departmental funding.

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chrisonabike replied to muhasib | 3 weeks ago
1 like

Read that and thought "that's active travel in the bin..." TBF I suspect that big change in that direction from "we're the party of the driver too!" Labour was unlikely anyway.

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eburtthebike | 3 weeks ago
12 likes

I'm disappointed with the response from CUK and Sustrans, but I suppose they have to deal with the government in the future and don't want to prejudice those dealings, but Carlton Reid nails it.

The £100m doesn't even approach restoring the tory cuts, which the chancellor could easily have done, justifying it by the huge return on investment, and as Mark Sutton says, it's just a drop in the ocean, not uprecedented levels of funding.

The only positive thing to be said is that it isn't a cut, but given the increasing pace of climate change, obesity and the cost to society of car obsession, it should have been ten times that.

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FionaJJ replied to eburtthebike | 3 weeks ago
7 likes

I'm equally underhwelmed by the money for active travel and the reaction from Cycling UK and Sustrans, but agree the response is most likely to be a pragmatic one with the calculated hope that staying positive will reap more rewards in future budgets. Building a healthy working relationship and having the ear of those in power is important at this stage of the electoral cycle.

What would have been/will be good is if there is a reassurance that investment will be ramped up in the future, and this year's money is more seed funding to get things moving in the right direction with more to come down the line.

On the other hand, there's no defence for the continued freeze on fuel duty while increasing the cap on bus fares by 50% And I'm sick of well off people insisting the fuel duty freeze is required to protect poor people.

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Simon E replied to FionaJJ | 3 weeks ago
5 likes

FionaJJ wrote:

I'm sick of well off people insisting the fuel duty freeze is required to protect poor people.

It's like the argument against pedestrianising town centre streets, when drivers protest about how will disabled people get to the shops? But they didn't give a flying f**k about disabled (or any other) people beforehand, especially ones that don't drive or are using the bus, which is stuck in a queue of traffic. It's solely about their own convenience.

And I'm bored of drivers complaining about the cost of fuel while not even beginning to consider how they could reduce their mileage or get better MPG (I see lots of inefficient drivers who seem to have a heavy right foot).

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mctrials23 replied to Simon E | 3 weeks ago
4 likes

Yeah, its amazing how many drivers care deeply about the disabled when something they don't want to happen is being proposed. They don't care about not blocking pavements by parking on them. They don't care about parking over dropped pavements that allow wheelchairs etc to cross the road. But suggest that somewhere should be an LTN or anything else that inconveniences them and magically the disabled are something they worry about. Not themselves obvious. No no no. 

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Spangly Shiny replied to mctrials23 | 3 weeks ago
1 like

A little bit of tarring all drivers with the same brush going on there. Not all drivers block pavements, not all drivers park on dropped kerbs and not all drivers complain about the installation of LTN's.
I, for one, drive for a living, don't park on dropped kerbs nor park on footpaths. What I do find irksome is where a local authority installs an LTN without notifying any of the mapping authorities as to where the navigable routes are. What we couriers face is simply a road blocked by a multi-tonne planter or a set of impassable bollards and are left to figure a way around them. Now I know there is a way around them because the authorities tell us so. However that frequently means extra mileage in, usually, densely populated areas; so no CO2 or NO2 savings to be had there then. Oh, and your parcels are liable to be later than you expect.
So, in short, bring on the LTN's: just advertise the bloody things!
A liitle bit more consideration for the pro drivers, if you please. And, by the way, all rat runners (especially wankpanzer drivers) should have their vehicles confiscated and crushed.

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Andrewbanshee replied to FionaJJ | 3 weeks ago
3 likes

The freezing of fuel duty to help poor people is a ridiculous argument considering that they have increased costs for people who rely on buses due to not being able to afford a car. I can't even see any improvements to access to public transport. The more I think about it the worse I feel.

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Spangly Shiny replied to Andrewbanshee | 3 weeks ago
2 likes

The freezing of fuel duty doesn't help poor people: genuinely poor people cannot afford to run a vehicle, so the freezeing of fuel duty is no argument on their behalf at all. It (the fuel duty freeze) allows your suppliers to keep delivery costs as low as they can (get away with). Every time the cost of fuel goes up, delivery costs go up. Trouble is that once they have gone up they never come down again. (Look at what happened after the invasion of Ukraine - delivery costs went up like a rocket {with the fuel costs} and have yet to recover).
In the short term it's the owner drivers who bear the cost, straight  off thier bottom line and months, sometime years before delivery rates (to the OD's) goes up to compensate. The delivery companies, however have no compunction in raising their rates straight away.

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Clem Fandango | 3 weeks ago
12 likes

100 million? Wow.

How much is just the M25/A3 junction work costing again?

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muhasib replied to Clem Fandango | 3 weeks ago
5 likes

Wisley Interchange is £300m, but remember it isn't a cost it's an investment 😉

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Clem Fandango replied to muhasib | 3 weeks ago
4 likes

£300m today, so the actual  final cost..... who the F knows.   All so as drivers we can sit stationary in more lanes than before. Sweet.

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Rome73 | 3 weeks ago
14 likes

100 million is nothing - but it's better than nothing. Freezing fuel duty to save the average motorist £59 over 1 year is also pathetic. But it's politics and everyone knows that cars come first. 

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biking59boomer | 3 weeks ago
15 likes

So after all the hints and "official unofficial" leaks the fuel duty hike and bringing in pay-per-mile simply didn't happen. neither did any increase in VED. This could have been the start of a move away from our car-centred society and towards one which encouraged the use of active travel and public transport. Instead motorists come out of it better than bus passengers. I've no doubt whatsoever that political expediency played a part in this. Very disappointing.

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levestane replied to biking59boomer | 3 weeks ago
9 likes

There is absolutely no chance of managing ourselves out of the environmental polycrisis; at least booze is cheaper.

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biking59boomer replied to levestane | 3 weeks ago
10 likes

Not while we've got a spinless govenment like this. Any claim they make to being environmentally friendly is now completly discredited. Already written to my MP. The more of us that do the same the more they'll realise that action is needed.

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slc replied to biking59boomer | 3 weeks ago
8 likes
biking59boomer wrote:

Not while we've got a spinless govenment like this...

I know it's a typo but a spinless government sounds marvellous. Not that the last few have been any good at spin.

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