The UK government’s latest Spending Review has drawn strong reactions from across the transport sector, with industry leaders praising the scale of investment while calling for swift and effective implementation.
The Chartered Institution of Highways & Transportation (CIHT) welcomed the Chancellor’s announcements, particularly the emphasis on long-term investment in transport infrastructure.
“The Spending Review shows that the government understands the vital role that highways, transport and infrastructure play in the UK economy,” said Sue Percy CBE, chief executive of CIHT. She highlighted the alignment between the government’s priorities and CIHT’s recent policy submissions, including funding for decarbonisation, public transport, climate resilience, and highway maintenance.
Notably, CIHT praised the £2.6 billion capital investment to decarbonise transport, £750 million annually for bus services, and £24 billion for maintaining and improving roads
Among the most widely welcomed announcements was the extension of the £3 bus fare cap until March 2027. The Confederation of Passenger Transport (CPT) hailed the move as a “vital lifeline” for millions of passengers. “This extension will help keep travel affordable and support economic activity across the country,” the CPT said in a statement
The review also confirmed major capital allocations for rail, roads, and active travel. Max Sugarman, chief executive of ITS UK, said the funding “demonstrates a clear commitment to modernising our transport systems.” However, he cautioned that “flexibility is key — we must ensure that local authorities and operators can invest in digital and data-driven technologies that improve efficiency and safety”
In the North, Martin Tugwell, chief executive of Transport for the North, welcomed the £3.5 billion TransPennine Route Upgrade and other regional investments. “This is a significant step forward,” he said. “But we must not lose sight of the bigger picture — Northern Powerhouse Rail remains essential to unlocking the region’s full potential”
The Association for Consultancy and Engineering (ACE) echoed the sentiment, applauding the bold capital commitments but urging a balanced approach. “New projects are important, but we must also maintain and upgrade existing infrastructure,” the group said. “Smarter, long-term investment strategies that prioritise value over cost will deliver the best outcomes for the public”
In a separate policy briefing, CIHT urged the government to adopt five-year funding settlements for local roads, similar to those already in place for the Strategic Road Network and rail.
“The forthcoming governmental Spending Review presents an important opportunity to shift the standard of funding for maintenance and management of England’s local roads to a more strategic, long-term model,” said Percy. CIHT’s ongoing research suggests that such a shift could unlock 5-10% in efficiency savings – equivalent to £1 billion to £2.2 billion – which could be reinvested into local highway maintenance. The organisation also emphasised the broader benefits of long-term funding, including progress toward Net Zero, improved climate resilience, workforce development, and enhanced social value
The full government Spending Review Document is available to read here.
As the dust settles on the Chancellor’s announcements, the message from the transport sector is clear: the funding is welcome, but the focus must now shift to execution.
