The Chancellor has committed to one major fiscal event a year in order to give families and businesses stability and certainty on upcoming tax and spending changes and, in turn, to support the government’s growth mission. It does, however, provide the opportunity to fine tune some of the more controversial announcements that were made in her Autumn Budget, including potential further tax changes.
Although any major changes have been downplayed, there are still areas that could affect the Transport and Logistics sector as follows:
Border and Trade Regulations
Logistics operators are seeking government support to ensure that UK borders facilitate the smooth movement of goods. Clarity and timely communication regarding new trading requirements are essential for the industry to plan and adapt effectively.
Following Sir Kier Starmer’s visit to the White House, a deal without tariffs to the UK could happen ‘very quickly’. Chancellor Reeves has expressed confidence in the resilience of UK-US trade and investment flows and may elaborate further in the Spring Forecast.
The Single Trade Window (STW) initiative, an aim to streamline import and export processes by providing a unified digital platform for traders has been put on pause for 25/26 but the Chancellor may outline revised timelines or funding allocations for the STW, emphasising its role in reducing administrative burdens and enhancing trade efficiency.
AI and sustainable logistics
The logistics sector is poised for transformation in 2025, with AI-assisted technologies supporting sustainable development and supply chain solutions moving to the implementation phase. The government’s role in facilitating this technological adoption may be highlighted in the Forecast.
Employer National Insurance Contributions (NICs)
An increase in employers’ NICs to 15% on salaries above £5,000 is scheduled for April 2025. Given the strong opposition from businesses following this announcement, the Spring Statement may offer relief measures, such as an increased Employment Allowance or a higher threshold before NICs become payable.
Support workforce development to address skills shortage
Although specific details regarding apprenticeships in the upcoming Spring Forecast have not been officially released, recent government actions suggest that apprenticeships remain a priority. The government has allocated an additional £60 million to support up to 20,000 new apprenticeships, focusing on opportunities for young people and small businesses. Given these developments, it’s plausible that the Spring Forecast will include further measures to enhance apprenticeship programs, which in turn could help businesses within the Transport & Logistics sector recruit and secure talent for the future.
Conclusion
While the Spring Forecast is not expected to introduce many significant changes, there is still a lot to consider due to potential adjustment to taxes, rising wages, and economic uncertainty on the horizon. While government policies may be beyond our control, how we adapt and respond is in our hands, so let’s see what March 26th brings.
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