Trade hails public transport investment but rues outbound ‘neglect’

Trade associations have welcomed news of public transport investments in today’s spending review (June 11) but have called for more government action on outbound travel and sustainable fuel.

 

Chancellor Rachel Reeves (pictured) has announced a four-year settlement for Transport for London to “provide certainty and stability” and for other regions, there will be a fourfold increase in Local Transport Grants by the end of this parliament.

 

She also said she will set out government plans for Northern Powerhouse Rail and provide a further £2.5 billion for the continued delivery of East-West rail, between Oxford and Cambridge.

 

Her speech announced funding for the Midlands Rail Hub, strengthening connections from Birmingham, across the West Midlands and into Wales – plus £445 million for railways in Wales over 10 years.

 

More: Inbound and outbound sectors ‘equally important’ to UK, says tourism minister

 

Julia Lo Bue-Said, Advantage Travel Partnership chief executive, said: “The government rightly talks about growth and it’s great to see an investment in public transport projects in England’s city regions, along with their support for a third runway at Heathrow which will significantly improve the passenger experience, increased competition for pricing, and reduced congestion and delays.

 

“Alongside this, it will enhance connectivity to global markets, driving both tourism and business investments.

 

“However, the UK outbound travel industry has once again been largely neglected. We need to see an investment in all sectors for the government to achieve the kind of growth it desperately needs.

 

“UK outbound travel is a cornerstone of the UK economy; it’s an industry that stands uniquely positioned to drive substantial economic growth, and it warrants full recognition across the political landscape as a strategic pillar of the UK’s economic success.

 

“We want to help grow the economy, but government needs to acknowledge we matter first.”

 

Luke Petherbridge, Abta’s public affairs director, said: “The Chancellor’s announcement today of large-scale investment in the public transport network of the North of England, the Midlands as well as extra funds for Welsh railways and elsewhere will undoubtedly bring significant benefits both to local people and the wider economy and is a welcome reflection of the government’s commitment to improving connectivity around the country.

 

“New Abta research shows that the UK outbound travel industry has the opportunity to deliver 20% growth by 2030 raising £52 billion in GVA (gross value added) annually, and contributing £10 billionn in tax, but further government support is essential in areas such as the development of home-produced Sustainable Aviation Fuel to help the industry achieve this goal.”

 

Business Travel Association chief executive Clive Wratten said: “Businesses have long been held back by poor, disjointed transport solutions. Better integrated rail, road and bus networks - particularly in regions like the North and the Midlands - will transform how people travel for work, supporting productivity and creating new jobs across key business hubs such as York, Leeds and Manchester.

 

“The emphasis on local growth plans that consider regional transport priorities will pave the way for an integrated, future-fit transport network.”