Reading, UK: The Cold Chain Federation has welcomed the government’s decision to introduce a new six-year Climate Change Agreement scheme, as revealed in the autumn statement. The new scheme would ensure businesses continue to receive reduced rates of Climate Change Levy until at least March 2033.
Tom Southall, executive director, Cold Chain Federation, said: “The cold storage Climate Change Agreement scheme has played a significant role in supporting energy efficiency progress in our industry for more than a decade, and the incentives the scheme offers have become increasingly important as operators need to invest in more sophisticated measures to continue making strong energy efficiency improvements.
“The Cold Chain Federation will be responding to the consultation on the new scheme and we look forward to working with Government to ensure that the details of the new scheme support and incentivise cold storage operators to maintain their strong momentum on energy efficiency.”
The government is also freezing road tax for HGVs and the HGV levy for 2024/25. A statement from the Treasury said: “Every day crucial journeys are made by heavy goods vehicles. From medical supplies delivered to hospitals to food delivered to stores, HGVs matter to our economy. That’s why we’re freezing the HGV levy & road tax for this type of vehicle – protecting vital journeys.
David Wells, Logistics UK’s chief executive, said: “The decision to make the current full expensing allowance for capital permanent is a welcome step that will support logistics businesses with long-term planning and investment. Our members are keen to identify if this change will include the cost of acquiring leased or hired vehicles, as well as those purchased outright.
“In addition, detail is needed to identify whether the move will cover the cost of installing the infrastructure required to help the industry decarbonise, as our research shows this could amount to an outlay of up to £1 million per site – a prohibitive charge which will hinder the industry’s shift to net zero.”
The RHA said it was pleased that the decision was a “campaigning win” for the association and that the freezing of the levy and road tax would “help operators in the difficult economic climate”.
The autumn statement at a glance
- The Office for Budget Responsibility predicts average inflation of 2.8% by the end of next year and 2% by 2025 with overall UK growth in 2023 of 0.6%, 0.7% in 2024, and 1.4% in 2025
- The minimum wage will rise to £11.44 per hour from April, an increase of £1.02 from the current rate of £10.42. This rate will now apply to Britons over 21. For those aged 18 to 20 it is £8.60 an hour from April, an increase of £1.11. For those 16 and 17 and also apprentices, minimum pay is £6.40 – a rise of £1.12
- The headline rates of national insurance for employees are being cut by 2%. National insurance relief for employers of eligible veterans will be be extended for another year. This will provide £10m to support the Veterans’ Places, Pathways and People programme
- A “new, simplified” tax relief for research and development will combine the existing R&D Expenditure Credit and SME schemes. Through that merged scheme, the rate at which loss-making companies are taxed is cut from 25% to 19%
- The full expensing scheme – currently due to expire in 2026 – will be made permanent. This allows firms to write off the entire cost of spending on new machinery and equipment, while also saving 25p from every pound spent on other types of investment
- The 75% discount on business rates of up to £110,000 for firms in retail, hospitality and leisure will be extended for another year
- To cut the time for planning applications to be granted for businesses, local authorities will be able to recover the full costs of major business planning applications if they meet guaranteed faster timelines. But if they fail, businesses will be refunded in full and have their planning application processed free
- Freeports and investment zones will be given 10 years of “financial incentives”, rather than five as currently planned. There will also be a further three investment zones: in the West Midlands, East Midlands and in Greater Manchester, while a second investment zone will also be set up in Wales.
- The government will spend £50m over the next two years to try to increase the number of apprentices in engineering and ‘key growth sectors’ where there are shortages.
