Contribution
As we all know, strong connectivity is vital to economic growth and social prosperity. It is not just about convenience; it is key to boosting productivity, attracting regional investment and raising living standards. Central to that is making public transport more available, affordable and accessible.
The transport crisis in this country is clear. Since 2015 the number of local bus journeys has dropped by more than 1 billion—a quarter of all trips—with many routes cut and fares up by more than 50% since 2013. Rail use remains below pre-pandemic levels, while Government rail subsidies have surged to over £22 billion, 65% higher than they were before the pandemic, despite repeated above-inflation fare increases. So what is the plan? The estimates offer us some hope, but the picture is mixed.
Let me begin with the positive aspects. The 4.4% rise in capital spending is welcome, especially the boost for Transport for London and High Speed 2, which shows much-needed recognition of the transport network’s capital needs. The continued support for East West Rail and the trans-Pennine route upgrade is also welcome, as they are vital to connecting communities and driving growth—exactly the kind of strategic investment we need.
Sadly, although the Conservative Government claimed to back motorists, they did the opposite, and fewer than half our roads are now in good condition. The new road funding settlement is good news therefore, but it clearly falls short of what is needed. The support for devolution is also encouraging. Local leaders are best placed to deliver for their areas, and increased autonomy for transport in city regions is positive, even if not all the new money is in fact new. However, areas outside combined authorities must not be overlooked.
Of the negatives, the most concerning is the £150 million cut to day-to-day spending this year and over the spending review period, which will affect subsidies for trains and buses. The reductions threaten already fragile services and the efforts to promote walking and cycling, and raise serious doubts about the Department’s ability to achieve its stated priorities.
There is a clear mismatch between the Government’s ambitious transport goals and their budget priorities. An £81 million rise in central administration costs, largely to cover the higher employer national insurance contributions that the Government introduced, raises questions about whether resources are being prioritised towards administrative overheads, rather than directly supporting frontline transport improvements.
Despite pledges to address climate change, the budget lacks detail on funding for green infrastructure, public transport decarbonisation and active travel, leaving the DFT open to accusations of setting green ambitions without a clear financial or operational pathway—greenwashing, effectively.
The £50 million in costs tied to the closure of phase 2 of the HS2 programme further reflects issues with long-term strategic planning. Not only does the expenditure represent sunk costs, with no return on investment; it casts doubt on the Department’s ability to deliver the major infrastructure projects that are so vital for national connectivity and economic growth.
The Liberal Democrats propose simplifying ticketing, improving accessibility and boosting connectivity, and also increasing usage and income by freezing fares. We also advocate a 10-year rail electrification plan—investing in zero carbon by ensuring that all new lines are fully electrified.
Buses, the nation’s most popular form of transport, get little support from the estimates. The franchising reforms in the Bus Services (No. 2) Bill are welcome, but they will not restore regular, affordable services without funding and expertise. We need more than just three people in the bus centre of excellence. Years of neglect following Tory deregulation have destroyed much of our national bus network, isolating communities and holding back growth. Clearly, the Chancellor’s hike of the fare cap from £2 to £3 should be reversed, as it is causing real hardship for some of the poorest in society, yet the estimates reveal continued cuts to bus subsidies, which is precisely the wrong approach when communities desperately need reliable, affordable bus services.
The Liberal Democrats believe that active travel infrastructure must accompany public transport reform, but the Government’s approach is disappointing. Although £246 million is currently allocated to Active Travel England, funding is set to be cut by more than £90 million next year, undermining Labour’s earlier promises of unprecedented investment. The Liberal Democrats propose a different path: a nationwide active travel strategy to build new cycling and walking networks that are better integrated with existing transport. This cost-effective, ecofriendly approach would connect homes, schools, high streets and transport hubs.
These estimates show a Department and a Government who lack ambition. While increasing capital spending and investing for the future are positive, cutting day-to-day spending is a poor decision from a Government who say economic growth is their highest priority. We need a transport system that works not just for the next decade, but for the next bus, the next train, the next school run and the next hospital visit. This means funding day-to-day services properly, empowering local authorities and putting passengers at the heart of every decision, for which the Liberal Democrats will continue to fight.