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Transport and Infrastructure

Fuel duty

The main rate of fuel duty for petrol and diesel will remain frozen for the seventh successive year at 57.95p per litre.

Company car tax

From 2020/21 new, lower bands will be introduced for the lowest CO2 emitting cars. The appropriate
percentage for cars emitting greater than 90g CO2/km will rise by one percentage point.

Transport infrastructure investment

As part of the National Productivity Investment Fund (NPIF), transport infrastructure investment will include £1.1bn to reduce congestion and upgrade local roads and public transport, £220m to tackle road safety and congestion on Highways England roads and £27m to develop an expressway connecting Oxford and
Cambridge. £450m will also be spent on trialling railway digital signalling technology.

Future transport technology

The NPIF will also provide £390m for future transport technology. This will include: £100m investment in testing infrastructure for driverless cars; £150m to provide at least 550 new electric and hydrogen buses, reduce the emissions of 1,500 existing buses and support taxis to become zero emission; and £80m to
install more charging points for ultra-low emission vehicles.

Broadband and 5G networks

The government will invest over £1bn by 2020/21, including £740m through the NPIF, to support the roll out of full-fibre connections and future 5G communications. Measures will include a new 100% business rates relief for new full-fibre infrastructure for a five year period from 1 April 2017.

Infrastructure for devolved national governments

The devolved national governments will each receive additional funds which can be spent on infrastructure projects. There will be an increase of over £800m for the Scottish government, over £400m for the Welsh government and over £250m for the Northern Ireland Executive, with each devolved administration
deciding where this money will be spent.

Flood defence

The government will invest £170m in flood defence and resilience measures. £20m of this investment will be for new flood defence schemes, £50m for rail resilience projects, including Dawlish, and £100m to
improve the resilience of roads to flooding.


A new £2.3bn Housing Infrastructure Fund will be used for projects such as roads and water connections that will support the construction of up to 100,000 new homes in the areas designated to be most at need of new housing.

An additional £1.4bn will be used to provide 40,000 new affordable homes, including some for shared
ownership and some for affordable rent. A further £1.7bn will be used to accelerate the construction of new homes on public sector land.

The government will also fund a regional pilot of the Right to Buy for housing association tenants, under which more than 3,000 tenants will be able to buy their own home with Right to Buy discounts.