Budget Resolutions

Heidi Alexander Excerpts

Monday 1st December 2025 Commons Chamber

[The Secretary of State for Transport (Heidi Alexander)]

It is a privilege to respond to today’s debate on the Budget. We have heard some excellent contributions from many colleagues, particularly those on this side of the House, and I hope my hon. Friends will forgive me if I do not mention them all by name. I will respond in writing to the specific questions put to me by my hon. Friends the Members for Ellesmere Port and Bromborough (Justin Madders), for Bathgate and Linlithgow (Kirsteen Sullivan) and for Brentford and Isleworth (Ruth Cadbury).

We have also had some thoughtful and measured contributions from Opposition Members, including the hon. Member for Dorking and Horley (Chris Coghlan) and the right hon. Member for Belfast East (Gavin Robinson). It is a shame that some of the other contributions from those on the Opposition Benches can best be described as heavy on indignation and light on contrition. You would have thought that the right hon. Members for Salisbury (John Glen) and for North East Cambridgeshire (Steve Barclay), as well as the shadow Transport Secretary, had no responsibility whatsoever for the economic inheritance that the last Government passed on to this one. We all know that the last Parliament saw living standards fall, and it is not a record to be proud of.

This Government were elected on a promise of change, which was the demand of a weary public. People were fed up with rising bills and falling real wages, fed up with schools and hospitals that had been cut to the bone, and fed up with trains and buses that they could not rely on. The economy—indeed, the country—felt broken in the very places that mattered most. In this Budget, I am proud that we are answering the public’s call for change, and making the fair and necessary choices to repair our public finances and deliver on the nation’s priorities.

We are cutting the cost of living through cheaper energy bills, frozen prescription charges and frozen rail fares. We are putting record investment into our NHS, bringing waiting lists down and creating 250 new neighbourhood health centres. We are righting a moral wrong by lifting hundreds of thousands of children out of poverty, not just through school breakfast clubs and by lifting the minimum wage, but by scrapping the two-child universal credit cap. And we are doing all this while meeting our fiscal rules. After years of decline, this is what rebuilding our country looks like.

[Gavin Robinson]

I understand that the Government want to accelerate their plans to remove the two-child limit as soon as possible, and it may be too soon to get a legislative consent motion passed by the Northern Ireland Assembly. May I ask the Secretary of State to undertake to engage with the Social Security Minister? If there is political willingness at Stormont for this to proceed quickly, perhaps she could do it on our behalf.

[Heidi Alexander]

I will certainly undertake to have those conversations with colleagues.

[James Naish]

Will the Secretary of State give way?

[Heidi Alexander]

In the interests of time, I will not give way.

It is because we understand what life is like for ordinary people that we have taken decisions in this Budget to provide real help with the cost of living. We know that an average household spends more than 10% of its income on getting around, getting to work and school, and making essential daily trips. That is why this Budget has not only extended the fuel duty freeze beyond the spring of next year, but restated our commitment to protect the bus fare cap.

For the first time in 30 years, we are freezing rail fares. If someone has a season ticket, is a commuter on a peak return or is travelling off-peak between major cities, they will get to keep more of their hard-earned cash. It is good news for millions of passengers, some of whom will save hundreds of pounds a year. That means extra money in people’s pockets, and it means that we will continue to keep a lid on everyday costs that drive inflation.

[Dr Luke Evans]

Will the Secretary of State give way?

[Heidi Alexander]

I am not going to give way.

Budgets are about choices, and I know that not everyone agrees with our decision to freeze rail fares. Indeed, just days before the Budget, I received a letter from the shadow Transport Secretary effectively proposing a 4.8% hike in fares. I considered his request, but an increase in line with the retail prices index, as the right hon. Member pretty much suggested, would have put passengers’ fares up by hundreds of pounds next year. We should not be surprised that the shadow Transport Secretary wanted passengers to pay more—after all, his party increased fares by 60% when it was in office—but Labour Members believe in cutting the cost of living and putting money back into passengers’ pockets. As we set up Great British Railways, bringing together 17 different organisations into one public organisation, we will build a railway where passengers, not profits, come first. 

While rail may often dominate newspaper headlines, this Government will never ignore the roads that carry most of our daily journeys. That is why, earlier this year, I gave the green light to the lower Thames crossing. After years of being stuck in planning limbo under the Conservative Government, it is now set to become the largest road building project in a generation. Thanks to this Budget, we are confirming a further £891 million of public funding, after which the private sector will take forward construction and long-term operation. Along with our commitment to extend the docklands light railway to Thamesmead, this is further proof that this Government are firmly on the side of the builders, not the blockers.

Before we came into power, our roads were a symbol of national decline. Poorly maintained and riddled with potholes, they were a nuisance at best and downright dangerous at worst. That is why, by the end of this Parliament, we will commit over £2 billion annually for local road maintenance, doubling funding since coming into office. We will fill millions of potholes every year, protecting drivers from having to shell out hundreds of pounds on costly repairs.

Investment and reform are my watchwords as we work to improve everyday journeys, but throughout all this we cannot be blind to the impact of transport on our climate. The truth is that most transport emissions come from our roads, which is why reducing costs for drivers while cutting emissions will be at the heart of the EV transition. The trends are already clear. EVs are often cheaper to run and maintain than more polluting cars, and consumers have noticed that, with EV sales accounting for a quarter of new car purchases in October.

However, this Budget enables us to go further. By committing an extra £1.3 billion to the electric car grant, we will keep saving buyers thousands of pounds on dozens of EV models. We will increase the expensive car supplement threshold for EVs to £50,000, and invest a further £200 million in the roll-out of EV charging infrastructure. My ambition is to make it as easy to charge up as it is to fill up, so I am pleased that the Budget confirmed a decade of 100% business rates relief for eligible EV charge points, and a review of the cost of public charging, including the impact of energy prices. Fairness remains at the heart of this Budget, and as the Chancellor rightly said, “everyone must contribute”, so electric and plug-in hybrid vehicles will start paying a new electric vehicle excise duty from April 2028. Above all, that ensures that all those who use our roads and all those who depend on our roads help to maintain our roads.

For years, the British people were resigned to poorer living standards, stagnant wages and public services that were not fit for purpose. This Government promised change, and despite the state of the economy when we entered office, we are delivering that change and doing so fairly. We promised no return to the long winters of austerity, and we meant it. An extra £120 billion in public capital investment over this Parliament will build new infrastructure and homes across the country. It will strengthen our energy security, and it will give the NHS its biggest ever capital settlement. For transport, it is a downpayment for better, more reliable journeys—trains people can rely on, buses that turn up on Sundays, roads that make driving easier and infrastructure that connects not just people with places, but the aspirations of the next generation to the opportunities of tomorrow. That is what this Budget is about: fair choices for a fairer Britain, where the cost of living falls, real wages rise, and our towns and cities get the connectivity they deserve. This is a Budget that delivers on the public’s priorities, and I am proud to support it.

Ordered, That the debate be now adjourned.—(Deirdre Costigan.)

Debate to be resumed tomorrow.