The UK government has published its third Cycling and Walking Investment Strategy (CWIS3), outlining a projected investment exceeding £4.5 billion over the five years from 2025 to 2030. This substantial commitment aims to embed active travel as a fundamental choice for people across the country, with a particular focus on improving infrastructure for walking, wheeling, and cycling.
A core objective of CWIS3 is to make active travel safe, easy, and accessible for everyone. The strategy sets an ambitious target for 55% of all short journeys in towns and cities to be walked or cycled by 2035. This long-term vision is supported by three new statutory objectives: enabling more people, especially the least active, to benefit from physical activity through active travel; making active travel an easy and integrated choice; and improving safety for those walking, wheeling, and cycling. A significant portion of the funding, £1.1 billion, is earmarked for Active Travel England, the government agency responsible for delivering these initiatives.
For UK households, the strategy could offer tangible benefits in the form of reduced transport costs. By providing more viable and safer options for active travel, particularly for shorter journeys, individuals may rely less on private vehicles, potentially saving on fuel, maintenance, and public transport fares. This aligns with broader government efforts to address the cost of living, as outlined by the Bank of England's ongoing efforts to control inflation, which currently stands at 2.3% as of April 2024. While the direct economic impact on inflation is difficult to quantify immediately, a shift towards active travel could contribute to a more resilient and less fuel-dependent economy in the long term.
Businesses, particularly those in local high streets, could also see an economic uplift. Increased footfall and cycle traffic can lead to greater engagement with local shops and services, potentially boosting local economies. The strategy's focus on connecting schools, high streets, and homes through safe networks is designed to facilitate this. Furthermore, the investment in infrastructure projects themselves will create employment opportunities within the construction and engineering sectors, providing a stimulus to local job markets.
The emphasis on enabling millions more children to walk, wheel, or cycle to school by providing safe, coherent networks is a key component. Beyond the CWIS3 period, there is an ambitious target that 60% of children aged 5 to 16 will usually walk or cycle to school by 2035. This focus on younger generations not only promotes healthier lifestyles but also aims to instil active travel habits from an early age, contributing to a longer-term societal shift. The strategy is also notable for being the first 'locally-designed national strategy', aligning with the government's broader programme of English devolution and supported by multi-year funding commitments.
While not directly impacting FTSE 100 companies in the short term, a successful shift towards active travel could indirectly benefit certain sectors. Companies involved in urban planning, sustainable transport solutions, and even retail businesses catering to active lifestyles might see increased demand. However, investors should consult a qualified financial adviser for specific investment guidance.