Autumn Budget 2024: Major HS2 and train route updates unveiled

Chancellor Rachel Reeves has revealed in her first Budget that the Transpennine upgrade to connect York, Leeds, Huddersfield and Manchester will be secured under the new Labour government.

Reeves said the money would deliver “fully electric local and regional services between Manchester and Stalybridge by the end of this year, with a further electrification of services between Church Fenton and York by 2026 to help grow our economy across the North of England, with faster and more reliable services”.

She added that the government will deliver East-West Rail to drive growth between Oxford, Milton Keynes and Cambridge.

The first services are expected to run between Oxford, Bletchley and Milton Keynes next year and trains between Oxford and Bedford running by 2030.

She said: “The past government made a number of promises on transport, but it failed to fund them.

“We are delivering railway schemes which improve journeys for people across our country, including upgrades at Bradford Forster Square, improving capacity at Manchester Victoria, and electrifying the Wigan-Bolton line.”

Reeves makes HS2 vow

Reeves also vowed to “get a grip” on HS2 between London and Birmingham, as she committed to start funding tunnelling work between Euston and a new station in west London.

“Today, we are securing delivery of the project between Old Oak Common and Birmingham, and we are committing the funding required to begin tunnelling work to London Euston station, catalysing private investment into the local area,” she told MPs.

Turning to roads investment, the Chancellor added: “For too long, potholes have been an all too visible reminder of our failure to invest as a nation.

“Today, that changes, with a £500m increase in road maintenance budgets next year, more than delivering on our manifesto commitment to fix an additional one million potholes per year.”

Air passenger duty to be ‘adjusted’

Chancellor Rachel Reeves also mocked Tory leader Rishi Sunak as she joked his “ears have pricked up” when she mentioned air passenger duty.

The Chancellor told the Commons: “Air passenger duty has not kept up with inflation in recent years so we are introducing an adjustment, meaning an increase of no more than £2 for an economy class short-haul flight.

“But I am taking a different approach when it comes to private jets, increasing the rate of air passenger duty by a further 50 per cent.

“That is equivalent to £450 per passenger for a private jet to, say, California?”

Electric vehicles get government support

On electric vehicles, the Chancellor said Labour wants to support take-up across the country. 

She announced in The Budget that existing incentives for EVs in company car tax from 2028 will be maintained.

The government will also increase the differential between fully electric and other vehicles in the first rates of Vehicle Excise Duty beginning in April 2025.

The measure is forecast to raise about £400m by the end of the forecast period, she added.