In a long drawn out battle between Purbeck residents and the Sandbanks Ferry company, which operates between Studland and Sandbanks in Dorset, it’s been decided by the UK Government’s secretary of state for transport, that fares can now rise annually in line with inflation, rather than capped at three percent.
While the decision, published on Thursday 6th November 2025, will allow the ferry company to increase its crossing toll, it won’t be able to charge people to drive along Ferry Road in Studland, nor increase tolls for pedestrians, motorcyclists and cyclists by 75 percent, nor reduce the discounts on the bulk purchase of ferry tickets, as the company had proposed.
Ferry tolls expected to rise more than expected from 1st April 2026
Ferry users no longer protected from high inflation spikes
This verdict follows a public inquiry which took place over six days, between Tuesday 21st and Wednesday 29th January 2025 in a Port of Poole office in Poole and at the Springfield Country Hotel in Stoborough.
The government-appointed planning inspector Kevin Gleeson heard from the company that it was ‘fair and reasonable’ to link toll prices to inflation but this was strongly opposed by a consortium of local councils comprising Dorset Council, Bournemouth, Christchurch and Poole Council, Studland Parish Council, Swanage Town Council and Corfe Castle Parish Council, along with many members of the general public.
In a previous public inquiry in 2020, the ferry company had asked for inflation-linked increases to ensure that it had enough money to buy a new ferry in 2034, but this proposal had been refused and instead, it was allowed to make annual increases fixed at three percent, which at the time was thought to be in line with future inflation.
However in 2022, UK inflation spiked at around 11 percent leaving the ferry company feeling hard done by as its costs rose, hence its move in 2024 to request higher tolls. This came as a surprise to many local residents who thought the matter had been settled for the next 10 years by the 2020 public inquiry.
The secretary of state for transport Heidi Alexander has now decided that a single car fare can rise with immediate effect to a maximum of £6.26 and a large vehicle to £12.52, and then rise every April in line with the previous January’s CPI inflation rate.
In September 2025, CPI was 3.8 percent, so higher than the 3 percent cap, but it could fall to 2 percent over the next few years, which is the government’s target rate. However the change means ferry users are no longer protected from high inflation spikes but the ferry company is.
The public inquiry took place in January 2025, having been controversially relocated from the Studland village hall, to the less accessible Port of Poole
Key points of ferry inquiry decision 2025
- Cars: Immediate increase allowed, from £5.40 up to £6.26 per trip, followed by a rise every April according to the previous January’s CPI inflation rate (but ferry company says no increase planned before April 2026)
- Large vehicles: Immediate increase allowed, from £10.80 up to £12.52 per trip, followed by a rise every April according to the previous January’s CPI inflation rate (but ferry company says no increase planned before April 2026)
- Pedestrians, cyclists, and motorcyclists: Increase allowed from £1 to £1.18, not the £1.75 originally proposed (but ferry company says no increase planned before April 2026)
- Bulk ticket discounts retained at current level: Drivers of vehicles can get 10 trip books at 28 percent discount and 50 trip books at 32 percent discount. Pedestrians, cyclists and motorcyclists can get 50 trip books at a discount of 10 percent, and 100 at a discount of 32 percent
- Ferry Road toll: Proposal to collect a road toll rejected
The public inquiry session at the Springfield Country Hotel in Stoborough was better attended by Purbeck residents, than the proceedings in Poole
Wins for local residents
In better news for regular ferry users – mainly local residents – the discounts on bulk purchases of tickets will stay the same.
Drivers will be able to continue to purchase passes in multiples of 10 at a discount of 28 percent, and 50 at a discount of 32 percent. Pedestrians, cyclists and motorcyclists will be able to continue to purchase passes in multiples of 50 at a discount of 10 percent, and 100 at a discount of 32 percent.
More good news for locals is that the move by the ferry company to try to revive the old road toll along Ferry Road in Studland, which leads to the ferry terminal, was blocked.
Thought by many at the inquiry to be a deliberate distraction to grab attention away from the original bid to get ferry crossing tolls linked to inflation, the idea was viewed as an impractical, if not madcap proposal.
It appeared that the planning inspector was also unconvinced by the scheme. In the report Kevin Gleeson wrote:
“I have found that while the ferry company has a right to reintroduce the road toll, there are numerous important considerations to be addressed about its implementation and operation which should have been resolved already and without their resolution, the implementation may not be possible.
“Consequently, based on the information before me, I cannot recommend that the reintroduction of the road toll should go ahead at this stage.”
Any attempt by the ferry company to introduce a road toll charge again will require a new application to the secretary of state.
On tolls for pedestrians, motorcyclists and cyclists, there will be a rise from £1 to £1.18 – much lower than the £1.75 initially put forward by the ferry company.
The Sandbanks Ferry crosses the mouth of Poole Harbour, linking the Studland peninsula with Sandbanks
Replacement ferry promised for 2034
Overall, the planning inspector backed the ferry company’s assertion that it needed more income in order to fund a replacement ferry in 2034.
This effectively means the current users of the ferry will pay the majority of the cost of replacing the ferry in 2034.
There remains no legal requirement or mechanism to monitor the ferry replacement reserve fund, nor any provision to protect the pot of money if the company chooses to use the money for another purpose or the company becomes insolvent.
The government-appointed planning inspector Kevin Gleeson (left) listened to all the arguments
“We’re exploring how future decisions on this route can be delegated”
Following the publication of the secretary of state Heidi Alexander’s decision, a Department for Transport spokesperson said:
“We know that changes to this lifeline route matter deeply to the local community, and we’re grateful to everyone who shared their views through the public inquiry, including local campaigners.
“That’s why we’ve agreed to reject Bournemouth–Swanage Motor Road and Ferry Company’s proposals to reintroduce a road toll, and ensured limited fare rises for ferry users, whilst maintaining the existing discounts on offer to passengers.
“We’re exploring how future decisions on this route can be delegated to the appropriate local authority as they know their area best and are best placed to respond to local needs.”
The response was the first indication that the government recognises the process of a planning inspector ruling on Sandbanks Ferry toll increases is archaic and needs reform.
Sandbanks Ferry boss Mike Kean tries to convince councillor Beryl Ezzard of his reasons to increase tolls
“Working collaboratively to help our local communities thrive”
Responding to the secretary of state for transport’s decision, the Sandbanks Ferry company said:
“Following the public inquiry held in January 2025 to determine proposed price increases for The Sandbanks Ferry, the secretary of state has made the decision to follow the inspector’s recommendations and approve our application to increase ferry tolls, subject to a small number of modifications.
“I want to reassure our community that no toll increases will be applied until 1st April 2026. We will share full details of the changes in the New Year with all in our community and our valued stakeholders.
“However, the secretary of state has not approved the section of our application which proposed the implementation of a ferry road toll. We are reviewing this decision in conjunction with the inspector’s report in detail and assessing next steps.
“We’d like to thank all parties who gave their time, expertise, and consideration during the Public Inquiry process. The resulting changes from the secretary of state’s decision are essential for securing the future of the ferry.
“It remains important that we continue engaging with all our valued stakeholders, including those who use the ferry, work for our ferry company, and live locally to our business. We are committed to listening to people and working collaboratively to help our local communities thrive.”
Local MP Lloyd Hatton spoke persuasively at the public inquiry
“Vital link for getting about – and not a luxury service”
There were more than 500 objections to the ferry company’s proposals from idividuals and organisation including from the MP for South Dorset Lloyd Hatton, who sprung into action to robustly make the case against plans put forward by the ferry company.
Lloyd met with the ferry company directly to raise his serious issues with the proposals, and also with representatives from the National Trust to listen to its concerns that a new road toll would limit access to nature and beaches in the Studland area.
Responding to the conclusion of the inquiry Lloyd Hatton MP said:
“Together, we have made sure that the ferry service remains more affordable and accessible. I am thrilled that there will be no new toll on Ferry Road, and no changes to the discount when bulk buying tickets. This is good news for our part of the world. I will always stand up for local people, so we get a fair deal.
“The Studland-Sandbanks ferry service is a vital link for getting about – and not a luxury service. The plans put forward by ferry bosses were totally unacceptable – so I am pleased that we have been able to scrap the most unfair proposed changes. And I am glad that this Labour Government has listened and responded to our community campaign.”
While pedestrian tolls are no longer frozen, the increase was limited to 18p
“Committed to a sustainable and reliable ferry service”
A spokesperson for the consortium of councils said:
“We are pleased that the proposed road toll has been removed from the final Order. This means residents and visitors can continue to access the Studland peninsula without extra charges for using Ferry Road, protecting access to the area’s natural and cultural assets.
“We also welcome the decision to reduce the proposed toll increases for pedestrians, cyclists, and motorcyclists from £1.75 to £1.18. This supports active travel and reflects our shared commitment to sustainable transport and healthy travel choices.
“While we are disappointed that car tolls will rise at all, we are pleased that the bulk ticket discounts we pushed for have been kept in the Order. These discounts help regular users and recognise the importance of supporting those who rely on the ferry.
“All members of the consortium remain committed to a sustainable and reliable ferry service. We expect the ferry company to be open about its plans, keep its promises, and replace the existing vessel on time to secure the long-term future of this vital transport link.
“Finally, we thank everyone who took part in the inquiry. Your input helped make this outcome possible and ensured local voices were heard.”
Councillor Ben Wilson (right) attending a public engagement meeting about the ferry company’s plans
“Passion and knowledgeable insight”
Dorset Council councillor Ben Wilson who represents South East Purbeck which covers Studland, has also worked hard over the last two years to listen to all the objectors and put their concerns to the ferry company. He added:
“I’m pleased the ferry company has made the commitment to fully fund the replacement ferry reserve and now it must keep that promise – it’s critical to have a sustaining ferry service for Purbeck residents and visitors.
“The community will now expect the company to live up to its expectations and operate the service long into the future.
“I welcome the move by the Department for Transport to explore delegating future decisions about the ferry service to the local authority, rather than burdening the planning inspectorate further.
“Periodic review of the ferry replacement reserve by Dorset Council would also be a sensible step to ensure future continuity of service.
“The passion and knowledgeable insight of some notable local residents who spent an extraordinary amount of time and effort submitting detailed objections to the inquiry has been very impressive. My thanks to everyone who contributed to the process.
“I feel the huge community response to this issue should send a strong message to the ferry company to continue to engage with local people to avoid this unsettling scenario recurring again.”
Costs
The cost of the inquiry to the ferry company was in the region of £249,000 in legal and advisory fees, plus the consortium of councils had to commit a substantial sum to hire a barrister to represent its interests.
So the real winners after nearly two years? The lawyers!
