CIHT welcomes the Autumn Budget 2026, delivered on 28 October by Chancellor of the Exchequer, Rt Hon John Healey MP.

While the announcements will have a positive impact on the sector, CIHT urges the government to continue to strengthen focus on proactive maintenance of the UK’s road infrastructure. Especially considering the impacts from increasingly extreme weather events and the need to future-proof highway infrastructure.

Motoring 

VED rates for cars, vans and motorcycles will be uplifted in line with the Retail Prices Index (RPI) from 1 April 2027. 

• The CIHT Charging for Road Use White Paper (2024) outlined how a pay-as-you-drive system could eventually replace fuel duty, with the phase out of fossil fuel vehicles. The Vehicle Excise Duty rate will address some of the gap left in HM Treasury as fuel duty income declines. 

Fuel duty rates will continue to be frozen and the planned RPI inflation increase will not rise until 1 July 2027. 

• Following the conflict in Iran, oil and fossil fuel prices have increased exponentially. This freezing of fuel duty protects motorists from additional charges per litre of fuel and shields the cost of good transported by road against additional duty rates, that were previously due to come into effect.  

Creation of an EV tariff porting taskforce 

Funding to reduce the cost of local, lower powered public chargers across Great Britain 

• CIHT’s report - Rolling out Electric Vehicle Charging Infrastructure: Advice for Local Authorities (2026) addresses affordability, accessibility and effective local delivery of EV charging infrastructure. CIHT’s Autumn Budget 2026 representation also calls for funding to address barriers to EV adoption. The launch a “tariff porting” taskforce is led by industry experts is welcome, as this will explore allowing drivers to use their cheaper domestic energy tariff at certain public chargers. The Department for Transport will set out more details in due course. 

Procurement 

Appointing an external chair to the Department of Business, Innovation, Science and trade’s Commercial Innovation Hub to accelerate efforts to drive innovation through public procurement. 

A new National Procurement Policy Statement will be laid in Parliament in March 2027 and new guidance on applying social value in central government procurement 

• CIHT’s report, Building Carbon Reduction into Procurement Processes (2023), examines leadership, contractual mechanisms, supply-chain collaboration and whole-life carbon. The report demonstrates a basis for linking procurement-led innovation to measurable carbon outcomes highlighting how procurement can act as a key tool to ensure innovation and social value are baked into projects in England.  

Infrastructure 

Publication of an updated Infrastructure Pipeline before the end of the year 

• The announcement of an updated infrastructure pipeline is welcome because it provides long-term certainty and confidence, enabling the highways and transportation sector to plan, invest and deliver projects more efficiently. As highlighted in CIHT’s report, Unlocking the Benefits of Long-Term Funding for Local Roads (2025), a clearly defined pipeline of work encourages businesses to invest in resources, technology and skills, supports workforce retention and strengthens supply-chain resilience by providing greater visibility of future demand. It also helps reduce the inefficiencies associated with stop-start funding and delivery, improving coordination, project planning and value for money. This enables more effective long-term maintenance and renewal of existing infrastructure, improving network condition, safety, resilience and performance while supporting economic growth, connectivity and road-user needs.  

Accelerating the development and adoption of quantum-enabled technologies across key sectors, including new methods for detecting defects in bridges to reduce delays in the transport system.  

• CIHT welcomes this announcement to detect defects in critical infrastructure such as bridges. CIHT’s reports The Transportation Digital Skills Gap (2024) addresses the capability needed to use emerging technology and Improving Local Highways: The Route to a Better Future (2020) calls for improved monitoring and a national condition database of critical assets. Improving bridge-defect detection is pertinent to that evidence-led approach. 

A rail infrastructure cost review chaired by Rachel Skinner CBE, reporting in six months. 

• CIHT welcomes the announcement of a rail infrastructure review. As with the Stewart Review (2025), there is an opportunity to draw on lessons from infrastructure delivery across other sectors and industries. CIHT’s report, Unlocking the Benefits of Long-Term Funding for Local Roads (2025), provides evidence on funding certainty, planning and delivery efficiency. Together with the findings of the rail infrastructure review, this evidence will help inform improvements to infrastructure delivery across the UK. 

Skills  

The government will set out over £750 billion of planned investment over 10 years and an expected workforce requirement of over 650,000 people, helping industry plan. 

Creation of skills targets of at least 3% for apprenticeships on large government infrastructure and construction projects. 

Funding the expansion of the Leeds College of Building to accommodate over 2,000 new learners, using £28 million for priority projects in West Yorkshire Combined Authority, West of England Combined Authority, South Yorkshire Mayoral Combined Authority (SYMCA). 

A government response to the Milburn and the Timms Review will be published before the end of this year. A White Paper will follow early in 2027 ahead of legislation later that year. 

The government’s commitment to setting out over £750 billion of planned investment over 10 years, alongside an expected workforce requirement of more than 650,000 people, provides greater certainty about future infrastructure demand and helps the industry plan effectively, allowing employers to anticipate skills shortages, recruit and train workers, invest in apprenticeships and technical education.  

• Aligning with CIHT’s Employment Trends: How Highways and Transportation Professionals See Their Future Careers, which highlights the importance of embedding workforce planning within infrastructure strategies. By linking long-term investment plans with workforce development, the government can help address skills gaps, retain experienced professionals and ensure the industry has the capacity to deliver planned infrastructure projects efficiently and successfully. 

Devolution 

The government has announced an additional £1.3 billion in Barnett formula funding between 2026–27 and 2029–30 for Scotland (£600m), Wales (£450m), and Northern Ireland (£270m). 

The budget will bring Mayors into the Business Rates Retention system from 2027-28 and providing them with a share of income tax from 2028-29, as well as enabling strategic authorities to introduce visitor levies - with local leaders able to set out plans for how revenues will be invested by March 2028.  

The government confirms it is in the final stages of agreeing new devolution agreements with 10 areas. Final arrangements will be confirmed in due course, subject to agreement with local areas. 

• CIHT welcomes further clarity on fiscal devolution for local authorities.  
  strategic and local authorities are often best placed to make place-based decisions regarding schemes and improvements to the highways network. CIHT welcomes greater control and fiscal autonomy so that authorities can make the improvements necessary in their region.  

CIHT looks forward to continuing to work with HM Treasury, the Department for Transport, and the wider UK Government to ensure the nation’s transport networks work for all our futures and delivers environmentally, economically, and socially. 

For more information on the Autumn Budget 2026, please contact CIHT Public Affairs Manager Liberty Hibberd e: liberty.hibberd@ciht.org.uk