• Fuel duty is frozen at the current rate, including the temporary 5 pence per litre cut, for a further 12 months.
• The Plug-in Van Grant is to be maintained in 2025/26. However, there was no news on whether the Plug-in Truck Grant will continue, so we are seeking clarity on that.
• An additional £5 million to be invested in improving the planning regime for Nationally Significant Infrastructure Projects, as well as £46 million to boost capacity and capability in local planning authorities.
• An additional £300 million for further education courses and £40 million to launch shorter and foundation apprenticeships. However, there were no timescales given on the reform of the Apprenticeship Levy into the more flexible Growth and Skills Levy, or how and when courses to be eligible for funding will be identified by Skills England.
• Full capital expensing to be maintained to support investment. However, disappointingly, there is no firm plan to extend full expensing to leased or hired assets, and no plans to extend it to cover the fees paid to energy network operators to deliver the upgrades needed for depot charging.
• £134 million to support the delivery of port infrastructure to facilitate floating offshore wind.
• Green hydrogen projects to be funded.
• The Advanced Fuels Fund to be extended for a further year to support the producers of Sustainable Aviation Fuel.
• Companies supplying critical minerals to UK exporters to be able to access UK Export Finance support.
Negative announcements:
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Employers’ NI contributions will rise to 15% from 1 April 2025, and the level at which employers start paying NI for workers will drop from £9,100 to £5,000. Increases in the National Living Wage and National Minimum Wage will further increase the costs of employment.
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Road Investment Strategy 3 will be delayed by a year to 2026/27 and the following RIS2 projects have been cancelled: A5036 Princess Way, A358 Taunton to Southfields, M27 J8 Southampton, the A47 Great Yarmouth, Vauxhall Roundabout and A1 Morpeth to Ellingham.
There was also a disappointing lack of news in the following areas, and we will be pressing for the relevant government departments to back them:
• Co-funding year three of the Generation Logistics campaign.
• Incentives for low carbon fuels, other than Sustainable Aviation Fuel.
• Mode shift grants.
• The Freight Innovation Fund, UK SHORE and other programmes to support freight innovation and decarbonisation.
The Budget also failed to comment on the impact of EU exit on trade, with the OBR document published the same day stating that “weak growth in imports and exports over the medium term partly reflect the continuing impact of Brexit, which we expect to reduce the overall trade intensity of the UK economy by 15 per cent in the long term.”