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You are here: Home / News / The UK Budget and how it will hit you (in traveller terms)

The UK Budget and how it will hit you (in traveller terms)

21/03/2012 by Kevincm

Well the UK Budget has been announced today, and at GhettoIFE towers, it’s time for a quick look at what Transport related items have come up…


Aviation:

  • Air Passenger Duty is confirmed as up from the 1st April 2012. However buried in the Red book this year is an ominous line:

2.158 Aviation tax: rates – Air Passenger Duty (APD) rates will rise from April 2012, as set out at Autumn Statement 2011. APD rates for 2013-14 will rise by the RPI (Retail Price Index) from 1 April 2013, as set out in Overview of tax legislation and rates.

Translation: APD will go up again next year.

  • Northern Irish Direct Long Haul Rates will remain as is, and power to set the rate to be devolved to the Northern Ireland assembly:

2.160 Aviation tax: Northern Ireland – From 1 November 2011, the APD rates for direct long haul flights departing from Northern Ireland were cut to the short-haul rate (£13 per passenger in economy and £26 per passenger in business and first class, from 1 April 2012). The power to set APD rates for direct long haul flights departing from Northern Ireland will be devolved to the Northern Ireland Assembly

Translation: The United Direct Service to the Newark is still going to run.

  • Review of South East England Aviation. Yes, there’s another review due to the capacity growth in the area, and the UK is loosing traffic. Nothing to do with idiotic Air Passenger Duty Rates of course.

Translation: Don’t expect runway 3 at London Heathrow.


Rail:

  • Northern Trans-Pennie Route up for Electrification

2.252 Northern hub rail investment – The Government will support Network Rail to invest £130 million, in the Northern hub subject to value for money, to improve the transport links between Manchester and Sheffield, Rochdale, Halifax, Bradford, Bolton, Preston and Blackpool. Capacity will increase on the Hope Valley line between Manchester and Sheffield, which will enable the number of fast trains running on the route to double.

Translation: Good news for the Trans-Pennie Route, but expect lots of weekend engineering works and closures when they do the upgrade. And expect it 1) overrun and 2) go over budget.

  • Valley Lines in Wales up for electrification

2.253 Welsh Valley rail lines – The Government will continue to work with the Welsh Government to consider electrification of the Welsh Valley lines subject to value for money and an agreement on financing. A final decision will be announced in the summer 2012 as part of the five year investment plan for the railway (2014–15 to 2018–19).

Translation: If it’s politically and budgetary sound,  it could happen. Then again – it might not.

  • London operators to work together to introduce longer trains

2.254 Rail journeys in London – The Government will work with Network Rail, train operators, Transport for London and the Mayor of London on proposals including longer trains and increased capacity at stations. More details will be announced in the summer as part of the five year investment plan for the railway

Translation: Well, anything to keep the commuters happy…..


Road

  • To attempt to improve roads faster, the government is planning to allow companies to run “roads”

2.250 Roads – The Government will develop a national roads strategy with a renewed focus on the level of performance expected from the Highways Agency, and will carry out a feasibility study into new ownership and financing models for the national road network, to report on progress by Autumn Statement 2012.

Translation: For Sale… UK Road network. Buyer must collect.


Whilst there are some highlights for rail, both road and air seem to have come off pretty badly at the want of George Osborn wanting to better balance the UK’s budget…..

Related

Filed Under: News Tagged With: Air Passenger Duty, APD, budget

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