London, UK: A group of the largest RHA members has written to the Chancellor, Jeremy Hunt, ahead of the next month’s Budget. One of the association’s key requests is to reform business rates to support transport businesses operating warehouses.
The move comes as cost pressures continue to lead to insolvencies in the haulage sector. One of the key reasons for closures relate to costs pressures, says the RHA. It says that last year the cost of running a typical 44-tonne HGV (excluding fuel) rose by nearly 10%, which followed a 20% rise in 2022. This, coupled with freight volumes being 10% lower in 2023, resulted in hauliers making 6% fewer trips than the year before, says the RHA.
The group, made up of 33 RHA members, is asking Hunt to:
- Continue the freeze on fuel duty and maintain the 5p cut
- Temporarily suspend Vehicle Excise Duty on HGVs and the HGV Levy
- Introduce an emissions-linked rebate on fuel duty on alternative fuels
- Introduce an essential user rebate on fuel duty for haulage firms
- Reform business rates to support transport businesses operating warehouses
- Extend full expensing to the cost of vehicle leasing
- Encourage training providers and colleges to offer heavy vehicle mechanic apprenticeships by increasing the funding band available to at least £23,000
- Reduce Employers’ National Insurance for operators training new starters, allowing greater investment to improve workers’ skills
- Introduce measures to reduce the insurance premium tax which disproportionately affects road transport operators
“The UK needs a vibrant haulage sector for its economy to thrive, and we look forward to seeing what support the Chancellor offers in the upcoming Budget,” says the RHA.
