London, UK: Logistics UK says the Budget did not address the skills gap in the industry so is urging the government to plough more investment into training programmes for crucial roles to help with the economic recovery from the pandemic.
Logistics UK welcomed some of the announcements in the Budget – including a freeze in fuel duty and extension to the furloughing scheme – but says that interest-free loans and grants are now needed for anybody looking to retrain and reskill into operational roles like HGV drivers and transport managers.
Alex Veitch, general manager of public policy at Logistics UK, says: “The average cost for a 12-month apprenticeship training and license acquisition is £7,000 – Logistics UK would like to see more immediate government support, in the form of interest-free loans or grants, to be made available now to help switch those affected by the pandemic into the vacancies which are open now, and help with the economic recovery from Covid-19.”
The Chancellor Rishi Sunak announced a rise in corporation tax in 2023, and the extension of the business rates holiday until June 2021 before a discounted rate is introduced.
Veitch cautions against hitting logistics companies with more taxation. “It is vital that business is not penalised by additional taxation at this crucial time in the economic recovery, particularly as the logistics sector is the one which drives all other sectors, delivering the raw materials and finished goods needed to boost trade and competitiveness.”
Logistics UK welcomed the news of the infrastructure bank and the government’s commitment to a Freeport programme.
The Road Haulage Association was particularly pleased about the freeze on fuel duty. RHA chief executive Richard Burnett said: “The Chancellor’s announcement of a fuel duty freeze for the 11th year in succession comes as very good news for the hundreds of thousands of commercial vehicle operators who have been struggling as a result of the pandemic.”
During the first wave of the virus, 12 months ago, the RHA carried out an industry survey and was dismayed to learn that 50% of the UK’s commercial vehicle fleet was off the road.
The RHA also welcomes the extension of the furlough scheme until the end of September.
