On March 26, 2025, Chancellor Rachel Reeves unveiled the much-anticipated Spring Statement, marking a pivotal moment for transport operators across the UK.
With plans for infrastructure upgrades, increased funding for local transport initiatives, and notable shifts in taxation and fares, the statement signals important opportunities—and challenges—for the transport sector, especially community transport providers.
After reviewing the statement, these key insights will help transport operators adapt, prepare, and grow in the evolving, uncertain landscape.
Increased Investment in Transport Infrastructure
The government has committed an additional £13 billion over the Parliament for capital spending, focusing on infrastructure projects that stimulate economic growth. A notable allocation includes £4.8 billion for the Strategic Road Network in 2025-26, with £1.3 billion dedicated to road renewals. This investment aims to enhance road conditions, benefiting transport operators by improving journey times and reducing vehicle wear and tear.
Boost in Local Road Maintenance Funding
Local road maintenance receives a significant uplift, with an additional £500 million allocated for 2025-26. This nearly 50% increase compared to previous commitments is set to address the backlog of road repairs, leading to smoother and safer local routes. For community transport services, this translates to more reliable and comfortable passenger journeys.
Support for Local Transport Initiatives
Metro Mayors will receive an extra £200 million for local transport in 2025-26, bringing the City Region Sustainable Transport Settlements to over £1.3 billion. Over £650 million is also earmarked for improving transport in towns, villages, and rural areas. These funds present opportunities for transport operators to collaborate on regional projects, enhancing connectivity and service offerings.
Changes to Bus Fare Cap
The government plans to adjust the bus fare cap from £2 to £3 until the end of 2025 (and maybe beyond). While this represents an increase for passengers, the move is designed to provide additional funding to support and expand bus services, especially in rural communities. Transport operators should prepare for fare adjustments and communicate these changes effectively to passengers.
Vehicle Excise Duty Adjustment
While fuel duty remains frozen for another year, vehicle excise duty (VED) on petrol and hybrid cars will see an increase. This adjustment is projected to add £11.2 billion to Treasury receipts by 2029-30. Transport operators should factor these changes into their financial planning, as they may impact fleet operating costs.
Implications for Community Transport Services
The increased funding for local road maintenance and transport initiatives is particularly beneficial for community transport services, which often operate on less-travelled routes. Improved road conditions and additional funding can enhance service reliability and safety, reduce vehicle maintenance costs and enable better access for the communities served.
Key Takeaways
The 2025 Spring Statement marks a clear commitment from the government to revitalise and enhance the UK’s transport infrastructure. These developments open significant doors for growth, innovation, and improved service delivery for transport operators and community transport services. By staying informed and proactively engaging with local authorities, you can maximise the benefits of these initiatives and drive tangible improvements for your passengers and communities.
At Road XS, we’re proud to support transport operators through this period of transformative change. Our advanced technology platform ensures you remain one step ahead, equipped to adapt quickly, deliver exceptional services, and lead the future of transport innovation across the UK.
