As the dust begins to settle on last month’s Budget, and as we look ahead to the new year, the question of how to get the economy moving again in 2026 will be on the minds of ministers across government departments.
Given that the Budget is forecast to have little to no impact on growth, the Government should be searching for new ways to boost economic activity over the year ahead, and one area of huge potential is one that’s currently overlooked: our rivers.
Passenger river services, such as the River Bus network operated by Uber Boat by Thames Clippers, provide services for over five million passengers each year.
These services carry commuters and tourists alike, reducing congestion on London’s roads and contributing to a modal shift towards cleaner, shared transport.
Despite fulfilling a public service role, river operators do so largely without the financial or policy support afforded to other transport modes such as buses or rail.
And they face significant challenges when it comes to providing reliable, sustainable routes for passengers and freight alike.
First off, renewable diesel and electric propulsion remain significantly more expensive than marine diesel, and no scheme currently supports operators in bridging this operating cost gap. The total cost of ownership for hybrid or electric vessels is prohibitive without equivalent incentives to those available to land-based transport operators such as buses.
In addition, although piers and terminals form part of London’s public infrastructure, the burden of investment for vessel upgrades and electrification falls entirely on private operators. Dedicated funding for shore power installations and coordinated grid planning with Distribution Network Operators (DNOs) are urgently required.
It’s also the case that current Department for Transport (DfT) definitions group all small vessels under leisure, fishing, or workboats, omitting urban passenger river transport. This lack of classification prevents access to appropriate support, data collection, and funding that is enjoyed by other modes.
And whilst we welcome DfT’s recognition of HVO as a transitional fuel, continued political and fiscal alignment is needed to make its use viable. Current fuel certification rules (e.g., RFTC eligibility) inadvertently exclude scheduled passenger services like ours and other river operators, creating a policy loophole that disadvantages operators seeking to upgrade vessels that could be part of the net zero journey.
It’s also important to highlight that, east of Tower Bridge, the lack of cross-river links limits sustainable east – west mobility. River crossings provide a low carbon, cost effective alternative to car travel. The Gravesend – Tilbury foot ferry could deliver major social and economic benefits if backed by a long term, performance-based subsidy, enabling future expansion for freight, passenger, and cycle use through electric vessel investment and extended service hours. The Lower Thames Crossing, as a tolled route, should help fund such initiatives, with DfT and Treasury support ensuring longer term confidence in sustainable river connectivity.
What steps should the Government be taking to address these challenges?
As a starting point, it’s high time that inland passenger river transport is recognised as a distinct subsector within the Government’s decarbonisation and transport policy framework – equivalent to urban buses or light rail, with tailored funding, regulatory timelines, and infrastructure support.
Ministers should also establish a co-investment model for pier electrification and coordinated grid planning to ensure operational reliability.
More generally, government at all levels must recognise the Thames and its crossings as integral to London’s decarbonisation strategy, with North-South connectivity and river services explicitly included in national and regional transport planning frameworks.
The Government needs new ways to deliver sustainable growth – our rivers can deliver exactly that.