The Budget’s effect on transport in Wales must be considered in two stages. Its application in Wales and England will concern national insurance, fuel taxes, the national minimum wage and railway infrastructure investment. These are all responsibilities reserved by the UK Government. Transport items (like train fares) mentioned in the Chancellor’s statement apply to England only.

The Budget includes the Barnett formula block grant (£21bn in 2025–26) to Welsh Government, which for transport is spent, subject to Senedd approval, on bus revenue support, TfW Rail services, TrawsCymru bus network, national roads and motorways. It also supplements local government transport expenditure on road infrastructure and maintenance traffic management and bus revenue support alongside council tax income.

In considering bus, coach and haulage/logistics companies, Rachel Reeves’ budget has brought cost increases which could affect their financial viability.

My research into bus company accounts shows (2024) that labour costs are the largest cost component (54% of the total),fuel (15%), spare parts (3%) and fixed costs like buildings, equipment, on-costs, pensions (28%). On average a bus company with 200 vehicles has labour........

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