Chancellor Rachel Reeves has announced in her inaugural Budget that the Transpennine upgrade, which will connect York, Leeds, Huddersfield and Manchester, is guaranteed under the new Labour government.
Reeves stated that the funding would ensure "fully electric local and regional services between Manchester and Stalybridge by the end of this year, with a further electrification of services between Church Fenton and York by 2026 to help grow our economy across the North of England, with faster and more reliable services", as reported by .
She further mentioned that the government will implement East-West Rail to stimulate growth between Oxford, Milton Keynes and Cambridge.
The initial services are projected to operate between Oxford, Bletchley and Milton Keynes next year, with trains running between Oxford and Bedford by 2030.
She commented: "The past government made a number of promises on transport, but it failed to fund them."
"We are delivering railway schemes which improve journeys for people across our country, including upgrades at Bradford Forster Square, improving capacity at Manchester Victoria, and electrifying the Wigan-Bolton line."
Reeves Pledges Commitment to HS2
Additionally, Reeves pledged to "get a grip" on HS2 between London and Birmingham, as she committed to initiate funding for tunnelling work between Euston and a new station in west London.
Addressing Parliament about the progress on a major infrastructure project, the Chancellor declared: "Today, we are securing delivery of the project between Old Oak Common and Birmingham, and we are committing the funding required to begin tunnelling work to London Euston station, catalysing private investment into the local area,".
On the topic of national road infrastructure, she noted the widespread issue of potholes, proclaiming: "For too long, potholes have been an all too visible reminder of our failure to invest as a nation."
The Chancellor then announced: "Today, that changes, with a £500m increase in road maintenance budgets next year, more than delivering on our manifesto commitment to fix an additional one million potholes per year."
Air passenger duty to be ‘adjusted’
Regarding air travel taxation, her speech included a humorous jibe directed at the Tory leader, saying her mention of air passenger duty must have made Rishi Sunak's "ears have pricked up". She informed MPs: "Air passenger duty has not kept up with inflation in recent years so we are introducing an adjustment, meaning an increase of no more than £2 for an economy class short-haul flight."
However, she took a firmer stance on luxury aviation, saying: "But I am taking a different approach when it comes to private jets, increasing the rate of air passenger duty by a further 50 per cent."
This increase translates to: "That is equivalent to £450 per passenger for a private jet to, say, California? "
Electric vehicles get government support
Touching on the environmental agenda, the Chancellor discussed the Government's backing for electric vehicles (EVs). She highlighted Labour's intent to bolster EV uptake across the º£½ÇÊÓƵ, noting in The Budget: "She announced in The Budget that existing incentives for EVs in company car tax from 2028 will be maintained."
The government also plans to widen the gap between fully electric and other vehicles in the initial rates of Vehicle Excise Duty, starting from April 2025.
She further added that this measure is projected to generate approximately £400m by the end of the forecast period.
