ACRE’s take on the 2024 Autumn Budget

Contrary to expectations, the Chancellor committed to freezing fuel duty increases equivalent to 5p per litre for a further 12 months, expiring in March 2026.

Given people in rural communities travel 3,360 miles more than their urban counterparts each year, of which 75% of journeys are made by car or van, the announcement will be welcome news to those dependent on petrol and diesel vehicles in the countryside.

The policy is unlikely to be sustainable in the long run, however, when considered alongside other government priorities such as the transition to net zero.

The chancellor celebrated extending the bus fare cap to the end of December 2025; a cost-of-living subsidy introduced by the previous government. However, the capped fare is set to rise from £2 to £3 per journey in the new year.

Whilst we are pleased to see this subsidy remain in the context of continuing inflationary pressures, we are concerned that increased fares will hit the lowest income households in rural communities, for whom travel by car or van is out of reach.

A longer term, more sustainable plan is needed to make bus travel available and affordable for people in rural areas. This should be joined up with other measures to promote net zero and put local government back in the driving seat.

Increasing the supply of affordable housing is a central part of the Government’s desire to drive growth in the economy. The Chancellor’s announcements yesterday referenced investment in the Affordable Homes Programme, as well as support for smaller housebuilders, but it’s not clear whether there is new funding that will be directed towards rural parts of the country.

The more significant announcement related to reform of the long-standing Right to Buy scheme. Marking a departure from previous administrations, discounts offered through the scheme to buyers are to be reduced, with greater provision for councils in England to keep receipts generated by sales.

We welcome this policy change as it will stem the loss of existing council house stock and help local authorities to use the proceeds of sales to build replacement homes. Alongside other provisions to build more affordable homes, it is a good first stab at addressing the housing crisis in rural communities.