Autumn Statement 2023 - impacts for transport sector

23rd Nov 2023

The Autumn Statement 2023 (22 November 2023) saw the Chancellor, Jeremy Hunt, announce planning reform and investment in AI. The short briefing provides a summary of some of the key announcements and provides a commentary from CIHT's perspective

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In the autumn statement there were a number of announcements that will have an impact on the highways and transport sector.  

In this briefing we provide the key announcement and commentary on this from CIHT's policy perspective

Planning reform and EV charging

What the Autumn Statement announced: The government will remove barriers to investment in critical infrastructure by reforming the UK’s inefficient planning system and speeding up electricity grid connection times….will consult on amending the National Planning Policy Framework to ensure that the planning system prioritises the rollout of electric vehicle charging infrastructure, including EV charging hubs, and also introduce new permitted development rights to end the blanket restriction on heat pumps one metre from a property boundary in England.
CIHT has called for planning system reform for some time to properly integrate land-use and transport planning and would welcome an update to the National Planning Policy Framework that makes a greater contribution to transport decarbonisation and the car-dependent nature of too many developments.  Creating places that meet the requirements of the 21st century in terms of all the critical elements of environmental, economic, and social sustainability while also effectively delivering the homes needed will be possible. The effective integration of planning and transport is fundamental to achieving this objective.

Network North

What the Autumn Statement announced: Recognising the need to better support the critical links between and within towns and cities, the government recently made the decision to not extend HS2 beyond Birmingham, and to take a radically new, development-led approach at Euston station, which will leverage significant private finance. The government’s decisions on HS2 will deliver £36 billion of savings that will be reallocated to Network North, an ambitious pipeline of alternative transport projects which will drive growth and connectivity in the great towns and cities across the North. This will expand Northern Powerhouse Rail, allocate an extra £8.3 billion to roads resurfacing across England; deliver the long-promised mass transit system in West Yorkshire; and provide £8.55 billion of additional funding for the second round of City Region Sustainable Transport Settlements (CRSTS2). 
CIHT welcome investment in transport to improve peoples' journeys in a way that will support the sustainable transport hierarchy.

VED

What the Autumn Statement announced: Vehicle Excise Duty (VED) uprating & Heavy Goods Vehicles (HGV) VED and HGV levy freeze – The government will uprate VED rates for cars, vans and motorcycles in line with RPI from 1 April 2024 in the Autumn Finance Bill 2023. To support the haulage sector, VED for HGVs and the HGV levy will both remain at 2023-24 rates for 2024-25.  
CIHT sees opportunities for road pricing to address congestion, reduce carbon and provide a potential funding source.  CIHT is exploring this further in need to support a just transition to net zero and address the funding gap with the transition to electric vehicles.  This will require a review of road taxation including VED.  CIHT calls for a longer-term funding solution to how road transport is funded and the outcomes it can deliver.

Technology and innovation

What the Autumn Statement announced:

  • The government will kickstart a Smart Data Big Bang, giving industry and investor certainty by setting out the UK’s ambition for using new powers in the Data Protection and Digital Information Bill, exploring innovative opportunities across seven sectors: energy, banking, finance, retail, transport, homebuying and telecoms. 
  • Connected and Automated Mobility funding – The government has committed to extend the Connected and Automated Mobility R&D programme with up to £150 million of funding between 2025-26 and 2029-30, helping the UK secure first-mover advantage in the deployment of self-driving vehicles and services. 
  • National Infrastructure Commission (NIC) study on connected and autonomous vehicles and mobility – The government is commissioning the NIC to undertake a study on how connected and autonomous vehicles and mobility can deliver growth. 
  • AI Compute – Investing £500 million in further UK based compute so that universities, scientists and start-ups have access to the compute power they need to help make the UK an AI powerhouse. 
CIHT welcomes investment in innovation and technology for the transport sector. Connected and autonomous vehicles, and the transition to those technologies offers opportunities to improve road safety on road networks.
CIHT believes there are many benefits AI can bring to the highways and transportation industry, especially when it comes to improving safety, providing more insightful transport planning, and efficient asset management, as well as improving the way the public experiences transport systems. As part of the AI Compute proposal CIHT would welcome seeing this providing more support for AI in public services and help enable the highways and transportation sector to harness the power of data. 
EV infrastructure announced in the Autumn Statement 2023

To see the Autumn Statement 2023 click here

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