The Labour Government’s 2026 Budget brought a range of measures impacting transport, welfare, and workers’ rights, drawing praise from trade union ASLEF while also leaving calls for further action. Among the headline announcements was a freeze on regulated rail fares in England, a move long campaigned for by ASLEF in the fight against transport poverty. The freeze aims to help commuters and passengers struggling with the cost of travel, although critics note the budget did not include new investment in railway infrastructure—a key factor in boosting economic growth and meeting climate targets.

The budget also confirmed that road fuel duty will remain frozen for the sixteenth consecutive year, covering the period until September 2026. While motorists will welcome the short-term savings, ASLEF has highlighted the impact on rail freight. Through its Rail Freight Future campaign, the union is calling for a fairer balance between road and rail, advocating changes to both road fuel duty and track access charges to create a level playing field.

Workers also saw positive news, with the national minimum wage set to rise from April 2026. ASLEF has stressed that age-based wage bandings should be abolished to ensure fairness, reflecting the union’s long-standing policy. Meanwhile, the scrapping of the two-child benefit cap, first introduced under the previous government, was hailed as a historic move. Officials estimate that by 2029/30, 450,000 fewer children will live in poverty. ASLEF has underscored that this reform must not serve as justification for other welfare cuts, noting that many children in poverty have at least one working parent.

However, the budget also brought some disappointments. The freezing of income tax thresholds will affect working people and pensioners alike, prompting ASLEF to renew calls for higher taxation on the wealthiest. The union has previously backed proposals such as a wealth tax targeting the richest 1% and a 0.05% levy on financial transactions to fund public investment and improve wages.

ASLEF General Secretary Mick Whelan welcomed the rail fare freeze as a step toward reversing years of underinvestment in the sector, saying:

"We are pleased that after 14 years of the Tories pricing people off our railways, this Labour government is helping people to commute to work and travel for pleasure. This is the right decision, at the right time, to help passengers be able to afford to make that journey they need to take, and to help grow our railway in this country. Because the railway is Britain’s green alternative – taking cars and lorries off our congested roads and moving people and goods safely around our country in an environmentally friendly way. We want to encourage people onto public transport – onto buses and trains and an integrated transport network – and [Transport Secretary] Heidi Alexander’s decision, made in conjunction with Rachel Reeves, is a testament to our lobbying and a vindication of our stand."

Image : ASLEF