CIHT analysed the government’s Autumn Budget and reviewed the Chancellor's measures to look at the wider implications for the highways and transportation sector.
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CIHT welcomes the Autumn Budget, delivered today (26 November 2025) by the Chancellor of the Exchequer, Rt Hon Rachel Reeves MP in the House of Commons.
Below we have provided our initial analysis and will add more information as it develops.
Transport emerged as a key theme, with the new mileage tax for electric vehicles dominating discussion.
As outlined in the CIHT manifesto, prioritising investment in the highways, transportation and infrastructure sector enables significant wider economic, societal and health benefits.
CIHT looks forward to continuing to work with the Treasury, the Department for Transport, and the government on the creation of transport networks that are fit for all our futures.
The government is introducing Electric Vehicle Excise Duty (eVED), a new mileage charge for electric and plug-in hybrid cars, which will come into effect from April 2028. Drivers will pay for their mileage alongside their existing VED.
Fuel Duty accounts for around 4% of all government tax receipts and will slowly decline to zero as the UK transitions to an electric and hydrogen vehicle fleet. Proceeds are not hypothecated to support the highways systems so currently it does not “pay for roads”.
If the government wishes to continue with its current policy of raising revenue directly from drivers, it is fair that owners of electric vehicles contribute, although care needs to be taken to ensure the level of any charge does not undermine the push for transport decarbonisation.
A pay per mile scheme for electric vehicles is one way to achieve this goal- and there are schemes in operation in New Zealand and several US states from which the UK can learn. CIHT have explored the role of mobility pricing in more detail in our report ‘Charging for Road Use’.
>>> Read more hereGiven the poor condition of much of the UK network, CIHT would welcome a debate on creating a stand-alone roads fund. This would help reassure the public that any new scheme will support improvements for all road users.
CIHT urges policymakers to recognise potential to reduce inequalities in the cost and access to transport that exist in UK, for example between rural and urban areas, and to incentivise journey time/route selection and vehicle choice for reduced impact on congestion, road safety and the environment.
Local roads maintenance funding – By 2029-30, the government will commit over £2 billion annually for local authorities to repair, renew and fix potholes on their roads – doubling funding since coming into office.
CIHT welcomes this commitment to local roads funding, having long outlined the importance of local roads maintenance. We continue to call for longer term funding settlements for local roads, to further recognise their importance to individuals, communities, and businesses.
The government is extending the 5p fuel duty cut until the end of August 2026, with rates then gradually returning to March 2022 levels by March 2027. The planned increase in line with inflation for 2026-27 will also be cancelled.
Although CIHT recognises pressures on household budgets, the freezing of fuel duty appears to be a failed opportunity to incentivise the use of low carbon modes.
The government is freezing all regulated rail fares in England for one year starting from March 2026.
CIHT welcomes the freeze to rail fares, helping to promote more sustainable transport options.
>>> Read more hereThe government is investing £48 million of additional funding to boost capacity in the planning system.
CIHT welcomes the government’s continued focus on accelerating planning reform and supporting the delivery of critical infrastructure. The £48 million investment to recruit and upskill planners, combined with the expansion of the Pathways to Planning Graduate Scheme, is a positive development. CIHT recognises that planning capacity has been a major barrier to progress across local authorities and regulators. Ensuring that new planners are equipped with specialist skills in transport planning, active travel, and digital decision-making will be crucial to achieving the government’s aims. CIHT membership enhances career prospects and provides access to qualifications such as the Chartered Transport Planning Professional (CTTP).
£13bn of flexible funding for seven mayors announced, alongside an additional £370m for the Northern Ireland executive, £505m for the Welsh government and £820m for the Scottish government.
CIHT welcomes this funding announcement, as local government underinvestment in the past years has blocked infrastructure improvements, particularly in transport, a vital engine for growth.
Chancellor confirms DLR extension to Thamesmead
The extension of the DLR would see a new line built from Gallions Reach to a new station at Beckton Riverside and then across the river to Thamesmead.
CIHT welcomes this decision, helping to improve connectivity, and create new homes and jobs.
Chancellor reaffirmed support for the Lower Thames Crossing
CIHT welcomes the Government’s commitment to growth and the announcement of the Lower Thames Crossing. Investment in transport infrastructure is a vital part of the government’s growth agenda. However, CIHT believes that this growth must be sustainably delivered.
CIHT believe that support for this infrastructure project must be consistent with a credible pathway to Net Zero by 2050, the delivery of major infrastructure projects should only be undertaken while remaining within the limits established by the UK's carbon budget.
Chancellor highlighted funding for transport projects in towns and cities outside London.
The Chancellor reaffirmed the £15.6 billion package of funding for transport projects in towns and cities, outside of London and the Southeast, announced on 4 June 2025.
>>> Read the full Autumn Budget here
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