London, UK: Operators need lower taxation and simpler road freight regulations in order to survive and thrive, according to Declan Pang, RHA director of policy and public affairs.
“As businesses try to navigate rising costs and different regulations, we want the next government to consider a review of road freight regulations which can be simplified and reduced.
He says that on a local and national basis the road transport sector is amongst the most heavily regulated industries in the UK.
“The unavoidable result of regulation is the cost of compliance, and as regulation grows it becomes more expensive for businesses to comply with.
“Whoever forms the next government will need to work collaboratively with industry to help minimise the financial burden on operators to support economic growth,” says Pang.
He stresses that the total cost of operating an HGV has jumped by 10% over the past year and because of these rising costs, some hauliers have gone out of business and some other operators are running at a loss with their margins wiped out by cost increases.
With the average profit margin of a haulier at just 2% (which equates to around £70 per week or £3500 per year profit per lorry), Pang says that the next government needs to minimise taxation for operators, particularly given that the cost of distribution affects the prices on shelves and the cost of living.
“We also want the next Government to commit to the continued freeze on fuel duty. In addition, we’re calling for the suspension of the HGV levy and a ringfencing of future funds for green fuelling infrastructure.”
