Richard Holden criticises ferry levy during Isle of Wight visit

Shadow Transport Secretary, Richard Holden, visited the Isle of Wight last week at the invitation of Isle of Wight East MP, Joe Robertson, to meet ferry operators and local Conservative Party members, as concerns grow over rising cross‑Solent travel costs and the forthcoming emissions levy.

Mr Holden, who visited the Island as a child, said he was struck by how frequently ferry affordability dominates local political debate. “Joe doesn’t need to brief me,” he said. “He speaks in the House of Commons about it constantly. He’s very creative at getting the issue raised.”

He was particularly critical of the Government’s decision to include cross-Solent ferry routes in the UK Emissions Trading Scheme (ETS), describing it as “a new tax which only affects one place in the entire country.” While the scheme is presented as an environmental measure, he argued its practical effect will be to increase fares for residents and visitors. “It’s going to hit local people; it’s going to hit tourism,” he said. “Even if you believed in the trading scheme, you’d exempt the Isle of Wight. The fact the Government hasn’t done that is crazy.” He did not think the previous Conservative government, who introduced the scheme in 2022 shared any blame for the situation.

Northern Ireland receives a 50 per cent reduction under the scheme, while the Island receives none. “People here don’t have a choice,” he said. “This is a one‑way ticket to more and more charges.” He added that rising global fuel prices give the Government an opportunity to rethink the policy, with ferry operators already reporting higher costs.

Beyond ETS: the wider ferry problem

Mr Holden acknowledged that the Island’s ferry issues extend beyond the emissions levy. “There’s obviously a bigger issue than just ETS,” he said. “How do we ensure proper competition so people can travel without feeling constantly price‑gouged?”

He argued the system has not been reviewed properly for years and that the priority should be to “drive competition” to bring down fares for both residents and tourists. Asked whether the ownership model of the ferry companies was the root of the problem, he said he did not believe nationalisation would reduce fares. “You can nationalise it – will it bring down prices? I don’t think so,” he said, adding that underlying costs (such as fuel, labour, docking charges, insurance, and high levels of debt) all contribute to pricing pressures. When pressed he agreed that high debt levels also contribute to the problems.

He also suggested that planning rules for strategic infrastructure, including ports, may need reform to prevent delays for potential new operators.

On past Conservative governments

Pressed on why previous Conservative administrations had not acted on ferry issues in their 14 years in power, Mr Holden said the party had faced “major shocks” including the pandemic and the war in Ukraine, but accepted that more could have been done. “Could you have done more when you were in government? I think that’s a perfectly reasonable thing to say,” he said.

He repeatedly stressed that the Government should prioritise lowering costs rather than introducing new charges. “The Government should be looking at what it can do to reduce costs, rather than how to squeeze more out of the people of the Island,” he said.

Mr Holden praised Joe Robertson’s cross‑party approach, saying the Island’s MPs had been “hammering on about the practical problems for people locally.” As for long‑term solutions, he said work was ongoing. “I don’t have an answer at the moment,” he admitted. “But the Government has to do something.”