Following on the back of an Autumn Statement aimed at businesses, and with an upcoming election at some point in 2024, there’s an expectation that the chancellor will be doing what he can to entice voters, and therefore expect this budget to be more focused on personal tax elements.
The cost of borrowing has gone up, and there is uncertainty in the economy locally due to rising interest rates, inflation, possible change in Government, cross border challenges, and staff shortages, which is affecting confidence in business’ decision making. Providing support and addressing some of the points below would provide confidence in the T&L sector. However, there are a raft of considerations our clients in the Transport & Logistics sector would like to see considered.
What could we expect to see in the Spring Statement?
Longer-term investment plan for the transport industry
We would support a longer-term investment plan for the transport industry. A plan which spans several terms of Government office, enabling sufficient time to implement a futuristic and sustainable infrastructure. Short-term planning is ineffective for Transport & Logistics. As a key sector, for UK businesses and economy. A “multimodal” approach to the logistics industry looking at how road, sea, rail and air can play their part.
Tax Incentives
Skills and resource shortages continue to impact the T&L industry and more investment, potentially tax incentives, are needed to encourage new recruits into the industry.
SME’s require additional tax incentives to help them compete with larger businesses in sustainability. Enhanced tax incentives for SMEs investing in greener fleets would be welcome. There is potential for emissions rebates to encourage the take up of greener fleets and fuels (biodiesel “HVO” may be part of the solution towards net zero).
We would encourage further tax incentives for SME’s investing in AI to enhance their business and compete with larger and global businesses.
Further training support and apprenticeship
We would hope for further support with apprenticeship programmes and training, further to the recent success of the Transport and Warehouse Operation Supervisor Apprenticeship. The shortfall of drivers in the haulage industry continues to be a significant issue and new investment and initiatives are desperately needed. Investment is also needed in providing safe and secure parking spaces for truckers in the UK as there is a significant shortage and these types of issue do not help with recruitment either.
Green Tech
Additional investment in the infrastructure for electric vehicles is required to encourage further investment by businesses in greener vehicles.
Further support for tax reliefs or green technologies, building on their previous commitment as part of the Autumn Statement for the funding of various projects, such as the New Green Accelerator Programme.
Better cross border processes
The ongoing impact of Brexit is resulting in continued disruption and delays at cross border checks. Increasing the number of trade agreements, and actively negotiating better cross border processes will help logistics businesses in the UK.
Fuel Duty
Whilst this is set to rise in line with RPI from this April onwards, continuing to hold this would benefit haulage firms and individuals given the current cost of living impact.
Vehicle Excise Duty & HGV Levy
A temporary suspension/or discount on vehicle Excise duty & HGV levy for haulage operators would help reduce costs.
Business rates
From a T&L perspective, we would like to see a continuation of support for business rates.
Contact our T&L Team, or contact us via the form below if you have any queries: