Committee publication · Correspondence · 13 November 2024

Letter from the Secretary of State for Transport relating to the Budget, dated 6 November 2024

From: Transport Committee

Inquiry: Work of the Secretary of State for Transport

Summary

Secretary of State Louise Haigh updates the Transport Select Committee Chair on the November 2024 Budget's impact on transport. The Department received £21.8bn capital and £8.2bn resource funding for 2025-26, a £1.2bn year-on-year increase. Key announcements include £500m extra for local roads, £1bn for bus services, HS2 confirmation to Euston, Transpennine Route Upgrade delivery, and £200m for EV charging infrastructure.

Key findings

  • Department funding settlement 2025-26: £21.8bn capital (CDEL) and £8.2bn resource (RDEL) funding, representing £1.2bn year-on-year cash increase
  • Local connectivity investments: £500m for local roads maintenance, £200m additional for City Region Sustainable Transport Settlements, over £1bn for bus services including £3 fare cap until December 2025
  • Major transport projects confirmed: HS2 Phase One to London Euston with central terminus tunnelling funding; Transpennine Route Upgrade York-Manchester; East West Rail Oxford-Cambridge acceleration
  • Green transport support: over £200m for EV charging infrastructure 2025-26, up to £120m for electric van purchase grants, fuel duty freeze and 5p cut extended one year
  • Road scheme cancellations: A5036 Princess Way, A358 Taunton to Southfields, M27 J8 Southampton, A47 Great Yarmouth, A1 Morpeth to Ellingham marked as unfunded and unaffordable

Tone

Procedural

Topics

public-financetransport-infrastructurerailwaysgreen-transportlocal-connectivity

Key actors

Louise Haigh MP (Secretary of State for Transport), Ruth Cadbury MP (Chair, Transport Select Committee), Chancellor, Department for Transport

Notable line

HS2 trains will run to Euston, with funding provided for tunnelling to the central London terminus …

Key Quotes

Despite this challenging fiscal outlook and the tough decisions government has had to take, the Budget delivered a positive outcome for the Department which sets us up well to deliver change in the coming years.
Louise Haigh MP · Introducing the Budget's transport sector impact
On overall funding, the Department's settlement for 2025-26 provides capital departmental expenditure limits (CDEL) funding of £21.8bn and resource departmental expenditure limits (RDEL) funding of £8.2bn.
Louise Haigh MP · Detailing departmental spending allocation
Confirming that HS2 trains will run to Euston, with funding provided for tunnelling to the central London terminus …
Louise Haigh MP · Announcing HS2 Phase One commitment to London terminus
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Source · parliament.uk record ↗

Letter from the Secretary of State for Transport relating to the Budget, dated 6 November 2024 | Beyond The Vote | Beyond The Vote