London, UK: The Chancellor’s decision to cut fuel duty by 5p per litre for a year will lead to average savings of £2,356 per year for each 44-tonee truck, according to Logistics UK.
Rishi Sunak’s move to slash fuel duty was part of the spring statement.
Elizabeth de Jong, director of policy at Logistics UK, said: “Fuel is the single biggest expense incurred by logistics operators, accounting for a third of the annual operating cost of an HGV. The cut in fuel duty of 5ppl will help to strengthen the UK’s supply chain during a time of ongoing financial and operational challenges.
“The Chancellor’s decision will help to ensure operators can continue to afford supplying the nation with all the goods it needs, including food, medicine, and other essential items,” she said.
In the run-up to today’s spring statement the Road Haulage Association had urged the Chancellor to introduce an essential user rebate of 15p per litre but he failed to take this action.
The RHA Tweeted: “After our call to cut fuel duty, we welcome the 5ppl reduction – but the Chancellor could have gone further. We will still press for an essential user rebate.”
UKWA chief executive Clare Bottle said:
“While the contribution of warehousing and logistics to the UK economy and our vital role during the pandemic has been acknowledged by Government – most recently by Minister of Employment Mims Davies MP – fine words have once again failed to translate into firm action.
“The 7.4% inflation forecasts announced today are alarming for low margin businesses like warehousing, as we see increases in rent, energy costs and especially labour. Ultimately, our members will have to pass these costs on to their customers, who will no doubt increase charges to consumers, driving up inflation further.
On Apprenticeships, the Chancellor recognised that the Apprenticeship Levy is “not doing enough”; and indeed, by the end of last year, the Transport and Logistics sector had contributed £700 million to the Apprenticeship Levy since its introduction in April 2017, yet the value we are getting remains limited, with less than a quarter of that expenditure recovered through logistics-based Apprenticeships. *
“HGV driver apprenticeships have been revamped and we need to do the same for warehousing apprenticeships. UKWA is doing its part, having very recently appointed a new Head of Training, but Government must do more.
“Homeowners are being helped with 0% VAT on energy saving, but what about small businesses? We believe warehouses can be especially effective in harnessing the benefits of Solar PV. Again, UKWA has commissioned independent research on this, but it’s time for Government to look beyond the domestic market and support small businesses in their efforts to increase sustainability.
“Finally, on business rates, despite repeated representations from UKWA and others, yet again, warehousing has been ignored. The Chancellor’s announcement of business rates discount makes £1.7 billion available for business, but not a penny of that will help warehousing companies.
“At a time when our members are facing crippling cost rises due to inflation, have absorbed the impact of Brexit and successive national lockdowns, it’s about time the Government started to listen to us. Government initiatives like net zero and levelling-up will only be delivered if they commit to providing meaningful, practical support to warehousing. Our industry is key to the nation’s economic recovery.”
Highlights:
◾ Fuel duty cut by 5p per litre for one year
◾ VAT scrapped on green home measures
◾ £500m for local authority hardship funds
◾ NI threshold increased by £3,000 to £12,750
◾ Employment allowance increased to £5,000
◾ Income tax rate cut by 1p from 2024
