Earlier today (Wednesday 3rd March), The Chancellor of the Exchequer delivered his Budget, focusing on three key areas: billions to support businesses and families through the pandemic; investment-led recovery as the UK emerges from lockdown; and future changes to strengthen public finances. You can find the relevant documents, including the Red Book, here.  

The most relevant measures for the logistics and transport sectors as the UK government looks to Build Back Better and to level-up the nations and regions of the UK are listed below. 

• £135 million to progress the A66 Trans-Pennine upgrade. 
• £59 million towards the construction of five new stations in Birmingham and the Black Country and £40 million of funding towards reinstating passenger services on the Okehampton – Exeter line.  
• £50 million for transport improvements around HS2’s Birmingham Interchange station.  
• £43 million in capacity funding to support City Regions to develop integrated, investment ready-transport plans to deliver on local priorities. 
• Up to £30 million for the Global Centre for Rail Excellence in Wales. 
• Extending the Airports and Ground Operations Support Scheme for a further six months from the start of 2021-22. This will provide support for eligible businesses in England up to the equivalent of half of their business rates liabilities during 2021-22, subject to certain conditions and a cap per claimant of £4 million. 
• Eight new English Freeports have been chosen at East Midlands Airport, Felixstowe & Harwich, Humber, Liverpool City Region, Plymouth, Solent, Thames and Teesside. 
• Publication of the prospectus for the £4.8 billion UK-wide Levelling Up Fund, providing guidance for local areas on how to submit bids for the first round of funding starting in 21-22. The Fund will invest in infrastructure including local transport projects. 
• Over £1 billion funding for a further 45 towns in England through the Towns Fund, supporting their long-term economic and social regeneration as well as their immediate recovery from the impacts of COVID-19. 

Protecting jobs and livelihoods 

• An extension of the Coronavirus Job Support Scheme to September 2021 across the UK. 
• Extension to the VAT cut to 5% for hospitality, accommodation and attractions across the UK until the end of September, followed by a 12.5% rate for a further six months until 31 March 2022. 

Strengthening the public finances 

• Maintaining the income tax Personal Allowance and higher rate threshold from April 2022 until April 2026. 
• The rate of Corporation Tax will increase to 25%, which will remain the lowest rate in the G7. In order to support the recovery, the increase will not take effect until 2023.  

An investment-led recovery 

• Beginning April 2021, the new super-deduction will cut companies’ tax bill by 25p for every pound they invest in new equipment. This is worth around £25 billion to UK companies over the two-year period the super-deduction will be in full effect.  
• Reforms to the immigration system will help ambitious UK businesses attract the brightest and best international talent. 

The Government also published its Build Back Better: Our Plan for Growth strategy, which focuses on stimulating growth through infrastructure, skills, and innovation. For the Department for Transport, this means record investment in roads, rail and cities – part of the Government’s capital spending plans worth £100bn next year. 

The growth created by this strategy will help level-up the whole of the UK, support the transition to net zero, and support the vision for Global Britain.