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Max Sugarman, Chief Executive, Intelligent Transport Systems UK - talks about how policy promises to reshape the future of transport with Alistair Gollop
Transport policy in the UK is undergoing one of its most significant shifts in decades. A new Government has already set out plans that will reshape how decisions are made and how new technologies are deployed. For the intelligent transport sector, the implications are far-reaching.
At ITS UK, representing nearly 200 members across all modes and applications of transport technology, we see first-hand how policy changes translate into opportunities — and challenges — for industry. Below we cover some key trends we are seeing and cover what we’re doing to support the sector.
There is no doubt that the Labour Government are focused on devolving a number of policy decisions, including in transport. The Buses Bill, currently making its way through Parliament, and the recently introduced Devolution Bill, will together, shift a number of powers to Mayors and Strategic (previously Combined) Authorities, including over bus franchising, micromobility schemes and highways management. Mayors will soon have the powers to regulate much of how their local transport networks run, and will have the ability to appoint Transport Commissioners to help in their decision making. For the sector, it is going to mean Combined Authorities become even more important stakeholders. At ITS UK, we’ve been working to engage Mayors across the UK, for example, holding a roundtable at the start of the year with Liverpool Mayor Steve Rotheram to explore the use of digital twin technology. At the upcoming Party Conferences, we’ll be hosting Cambridgeshire and Peterborough Mayor Paul Bristow too, at our Transport Tech Showcase.
Another critical focus of this Government is transport integration. Last year, in November, the then-Transport Secretary Louise Haigh set out her vision for an integrated transport network, and got the ball rolling for a strategy that would look at how we can deliver joined up, seamless journeys around the UK. Technology and the better use of data will play a key role, with the Department for Transport also planning to publish a Transport Data Action Plan alongside it. Whether its through smart ticketing or data sharing across modes, building an integrated transport system will require multiple forms of technology that bridge the traditional siloes we’ve built in transport. Traffic managers will increasingly need to be able to speak to their bus and rail counterparts, and will also need to share data that allows the end users, the travelling public, to have a more seamless experience when using the network. We’ve been working with the Integrated National Transport Strategy (INTS) team, delivering workshops over the past year, to ensure the sector feeds into the Government’s plans.
Across Government, we have seen a keen focus on how technology can deliver. Nowhere is this more apparent than in the field of autonomous vehicles, with the current Government recently publishing consultations on the secondary legislation required to get self-driving cars onto roads. In September 2025, ITS UK published its responses to two of these consultations, on the Statement of Safety Principles and the Marketing Terms, stressing the importance of both robust safety standards and honest marketing to foster public trust in this emerging technology. Elsewhere, there has been a big focus by ITS UK on where current regulations or rules are acting as a blocker to the use of technology. In the area of road enforcement, for a number of years the Home Office’s Type Approval process (HOTA) has acted as a barrier to innovation, due to rigid nature of what technology is accepted, and uncertain timelines for applications to be approved. After a campaign by ITS UK over the last year, we’re really pleased to see the Home Office now working with the British Standards Institute to review HOTA. Similarly, for the bus sector, we’ve been working hard to promote the role of on-demand buses (demand responsive transport) in a rapidly changing bus market. In March, we gave evidence to Parliament’s Transport Select Committee urging regulations to be changed to ensure these dynamic services don’t have VAT applied to them (which they currently do when using smaller vehicles) and were delighted a few weeks back to see the Committee adopt this policy as a report recommendation.
It would be remiss, of course, not to discuss the fiscal backdrop that will play on the minds of all policymakers, including in transport. It is clear that – with the upcoming Budget – tough decisions will need to be made by the Chancellor. In this area, ITS UK would highlight two key points. First, the sector can help – particularly by supporting the roll out of a national road pricing scheme. It is clear that falling tax revenue from fuel duty will continue to exacerbate the already difficult financial situation the Government is in, and a dynamic, pay as you go scheme could help recover income currently set to disappear as the car fleet becomes electric. The sector has the technology, knowhow and experience to deliver – we just need the political willpower. Secondly, we need to make the case for ITS as a sector of strategic value to the economy. We recently launched a survey to understand the economic value of the ITS sector, working with Capital Economics. This critical data will be used to demonstrate the industry's contribution to economic growth and jobs, bolstering the case for future investment. The survey is still open and we encourage all to help support this vital work.
The policy environment for transport is evolving rapidly, with new powers for local leaders, a stronger focus on integration, and a willingness to embrace technology. At the same time, tough fiscal realities mean Government will be looking for industries that deliver value. For the transport technology sector, this is both a challenge and an opportunity. By demonstrating our economic value, by providing practical solutions like road pricing and on-demand mobility, and by ensuring public trust in new technologies, we can help shape a safer, more seamless and sustainable transport system. ITS UK will continue to work with Government, local authorities and industry to ensure that the sector is at the heart of these decisions.