Supporting the UK Coach Industry: Urgent Considerations for the Upcoming Budget:
As part of our efforts to champion the needs of the Coach Industry, we have formally written to all Members of Parliament ahead of the autumn budget. (please see below) In this letter we highlighted key challenges facing the sector including: driver recruitment, the transition to alternative fuels and the and the need for infrastructure to support electric coaches.
I am writing on behalf of the UK Coach Operators Association (UKCOA), the leading trade body representing coach operators across the country. We are committed to promoting the coach industry as an essential part of the UK’s transport system, whether it’s providing school transportation, local tours, or long-distance journeys. UKCOA’s members range from small, family-run businesses to large national operators, all playing a crucial role in the UK’s transport infrastructure.
Our mission is to advocate for the needs of our members with key stakeholders, including local authorities, national government, and transport bodies. We regularly engage with decision-makers to ensure that the challenges faced by coach operators are understood and addressed. By doing so, we aim to create a sustainable and thriving future for the coach industry, ensuring it continues to play its vital role in the UK’s economy and transport network.
Coaches are one of the most environmentally friendly forms of transport, helping to reduce congestion and emissions. Each year, the industry contributes billions of pounds to the UK economy, supports thousands of jobs, and ensures that rural and underserved areas remain connected.
However, we are facing unprecedented challenges in three key areas that require Government intervention in the upcoming budget: driver recruitment, fuel costs, and infrastructure for electric vehicles.
1) Addressing the Driver Recruitment Crisis and Supporting Young Drivers
A shortage of drivers is severely impacting coach operators across the country. Post-pandemic workforce changes, Brexit-induced labour shortages, and an ageing driver pool are all contributing to this crisis. While apprenticeship and retraining schemes are available, one of the key obstacles remains the current restrictions that prevent 18–21-year-olds from driving Category D vehicles (coaches) on routes over 50 km. This contrasts starkly with Category C (HGV) licensing, which allows 18-year-olds to drive large commercial vehicles over much longer distances.
This disparity is limiting opportunities for young people to enter the coach driving profession at a time when new talent is desperately needed to fill workforce gaps. Allowing younger drivers the same rights as Category C drivers would not only expand the pool of available workers but also offer long-term, stable career opportunities for young people.
Action Requested:
We urge the Government to amend the age restriction for young drivers. Allowing 18–21 year-olds to drive coaches on all routes (not just short ones) would significantly alleviate the workforce pressures operators face and help develop new talent.
Alongside this, we call for continued financial support for recruitment initiatives, including subsidies or grants for training programs to attract new drivers into the industry.
2) Promoting the Use of Biofuels by Reducing Fuel Duty
Many coach operators are keen to adopt more environmentally friendly fuel options such as biofuels, which reduce emissions compared to conventional diesel. However, despite this willingness to transition, the current cost of biofuels is significantly higher than that of standard road diesel, which limits the uptake of cleaner fuels. This misalignment is a key barrier preventing the industry from achieving its environmental potential.
Despite their environmental benefits, biofuels are taxed at the same rate as traditional fossil fuels, creating a financial burden that discourages their use in the coach industry.
In contrast, other sectors benefit from reduced duty rates on biofuels. For example, non-road mobile machinery (NRMM) operators enjoy a significantly lower duty rate. This discrepancy makes it more cost-effective for operators of construction and agricultural machinery to use biofuels than for coach operators, despite the crucial role coaches play in reducing the overall carbon footprint of mass transport.
This, coupled with increased retrofit and maintenance costs, fuel storage expenses and reduced fuel efficiency have huge financial implications that must be carefully considered by operators before transitioning to biodiesel.
Action Requested:
By lowering the duty on biofuels for road transport, the government would make it financially viable for coach operators to make the switch, further reducing carbon emissions and supporting the UK’s climate commitments.
Lowering the duty on biofuels would not only help coach operators in reducing their operational costs but would also ensure a faster transition to cleaner fuels, benefiting the entire transport sector. Given the vital role that coaches play in sustainable mass transport, a targeted incentive for biofuels is essential. This reduction in duty would enable operators to embrace renewable energy more widely, without bearing the higher fuel costs currently associated with environmentally friendly options.
3) Infrastructure for Commercial Electric Charging Points
The Government’s commitment to net-zero by 2050 has led to a surge in interest around the adoption of electric vehicles, including in the coach industry. However, while some operators are exploring electric coaches, the lack of charging infrastructure is proving a significant barrier to widespread adoption. Electric coach charging points are virtually non-existent at many service stations, coach parks, and other key locations, making long-distance electric coach journeys impractical. Without commercial charging infrastructure, it is unlikely that the industry can transition to electric fleets on a meaningful scale.
Action Requested:
We request that the Government invest in developing a network of commercial charging points for electric coaches at strategic locations, such as motorway service stations, coach parks and key tourist sites. These charging points are essential to enable the widespread use of electric coaches, which would contribute greatly to reducing emissions from the transport sector and supporting the UK’s broader environmental targets.
Conclusion
The UK coach industry is a vital part of the nation’s transportation infrastructure, supporting everything from school travel and tourism to mass transit and reducing road congestion. However, we face significant challenges in the areas of driver recruitment, fuel duty for alternative fuels, and electric charging infrastructure that cannot be overcome without targeted Government intervention. By addressing these key issues, the Government can not only support the coach industry in its efforts to adapt to a changing environment but also help meet its own economic and environmental objectives.
I would welcome the opportunity to discuss these matters with you further and explore how we can work together to secure the future of the UK coach industry.
Yours sincerely,
Stephen R. Telling
President- UK Coach Operators Association
