Member News – 01 July 2026

1 July 2026

In this issue:

• Changes to nominal vehicle excise duty rate for HGVs as of 1 July.
• End of the smart tachograph 2 retrofit exemption on 30 June 2026 for ROI vehicles transiting NI.
• Consultation on strategic charging infrastructure scheme for electric vehicles.
• Consultation on proposed changes to RIDDOR 2013.
• Logistics UK launches new Employment and Skills Report 2026.
• Logistics UK publishes new discussion paper on decarbonising multimodal logistics.
• Latest Logistics Performance Tracker member survey findings.
• Opportunity to share your views on Logistics UK membership.

Changes to nominal vehicle excise duty rate for HGVs as of 1 July

Following the government’s announcement of a temporary support package for the transport sector, eligible Heavy Goods Vehicles (HGVs) will be subject to a nominal vehicle excise duty (VED) rate of just £1 for a 12-month period starting from today (1 July 2026).

Logistics UK has welcomed the move, which will provide vital relief to operators currently navigating intense cost pressures.The temporary £1 nominal rate applies to vehicles exceeding 3.5t within the following specific Driver and Vehicle Licensing Agency (DVLA) tax classes:

• Class 1 – HGV.
• Class 2 – Trailer HGV.
• Class 16 – Small Island.
• Class 23 – Combined Transport.
• Class 57 – Special Types.

The £1 rate applies to 12-month licences taken out on or after 1 July 2026 and up to 30 June 2027.

The reduced £1 rate will apply when the vehicle is next due for re-taxing during the qualifying 12-month window. This structured rollout ensures all eligible vehicles benefit from the VED reduction for one full 12-month licensing cycle.

No retrospective refunds on any licences renewed or taken out up to 30 June 2026 will be charged at the standard, existing rates.

The HGV road user levy remains separate, so members should note that if a vehicle is liable for that, it will continue to be charged at its existing rate.

An updated V149/1 tax rate document reflecting these changes will be published in due course.

End of the smart tachograph 2 retrofit exemption on 30 June 2026 for ROI vehicles transiting NI

In Northern Ireland by 1 July 2026, most vans and light goods vehicles between 2,501 kg and 3,500 kg used for commercial international journeys must be fitted with and use a Smart Tachograph 2.

This requirement applies to any vehicle carrying goods for commercial purposes within this maximum permissible mass range (including any trailer), unless the following two conditions are met: the journey is carried out on an own account basis (ie, transporting your own goods) and driving is not the driver’s main activity, or another specific exemption applies.

The retrofit requirement will be enforced from 1 July 2026 for Republic of Ireland‑registered vehicles that cross Northern Ireland without loading or unloading, when travelling between two points in the Republic of Ireland.

Further information is available here.

Consultation on strategic charging infrastructure scheme for electric vehicles

The Department for Transport has launched a new consultation seeking views on proposals for a scheme that addresses high electricity network upgrade costs at motorway service areas (MSAs) in England.

The proposed scheme would support motorway service areas where the current cost of grid capacity to meet demand is not commercially viable.

Government would strengthen electricity network connections, then make that capacity available at a subsidised rate to firms installing open-access EV charging.

An indicative allocation of £190 million has been made for the scheme which is part of the £400 million to support EV charging infrastructure that was announced as part of the Spending Review 2025, which covered funding for 2026 to 2030.

The scheme will deliver electricity upgrades to meet projected EV charging demand at selected sites to at least 2035 and potentially up to 2050 in some circumstances.

Logistics UK will be responding to the consultation before the deadline of 28 July 2026. If members wish to share views, please contact Lamech Solomon.

Consultation on proposed changes to RIDDOR 2013

Logistics UK has responded to the consultation on proposed changes to the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR) 2013, supporting clearer definitions, updated dangerous occurrences, and simpler reporting to improve data quality.

Members stressed that any expansion of occupational disease reporting must be backed by clear causation criteria to avoid inconsistent reporting and reduced data quality.

Members can view the full consultation response here.

Logistics UK launches new Employment and Skills Report 2026

Yesterday (30 June), Logistics UK launched its new Employment and Skills Report 2026, which highlights that workforce challenges in logistics have shifted from labour shortages to a deeper “capability gap” – the growing mismatch between the skills employers need and those available in the workforce.

While headline shortages (eg, HGV drivers) have eased since 2021, underlying pressures remain, particularly in roles requiring technical expertise, management capability and sector-specific knowledge.

At the same time, operating models are rapidly evolving, driven by automation, digitalisation, AI and data. This is transforming traditional roles into more complex, hybrid positions requiring higher-level technical, digital and compliance skills.

As a result, skills – not headcount – are now the primary constraint on productivity and growth, with employers reporting that accessing the right skills is a bigger barrier than recruitment alone.

Despite these challenges, there is a significant opportunity to expand labour supply and capability, including through engaging underrepresented groups and the growing number of young people not in employment, education or training (NEET).

Looking ahead, the report emphasises that long-term resilience will depend on building workforce capability, supported by changes such as more flexible and responsive skills and training systems, and stronger coordination between government, employers and training providers.

Logistics UK’s core message is that logistics skills must be treated as critical national infrastructure, with sustained policy support needed to ensure the sector can deliver productivity, resilience and economic growth.

Members can download and read the full report here.

Logistics UK publishes new discussion paper on decarbonising multimodal logistics

Today (1 July), Logistics UK has published a discussion paper titled, ‘Thinking holistically: how to decarbonise multimodal logistics’, which states that the UK cannot decarbonise logistics through individual transport modes in isolation.

Fuels, electricity and infrastructure are interconnected and must be planned as a single, integrated system to avoid supply bottlenecks, inefficiencies and rising costs.

The paper identifies that the transition will rely on a combination of low carbon fuels (LCFs) and electrification yet progress is currently constrained by a consistent set of cross sector challenges: high and volatile energy costs, limited fuel and electricity supply, infrastructure gaps, fragmented regulation, and growing skills shortages. These barriers are slowing investment and deployment across all freight modes.

Despite questions needing answers, decarbonisation of multimodal freight also offers major economic opportunities, including the growth of domestic LCFs production, job creation, increased energy resilience, and stronger supply chains.

Logistics UK’s core ask is for government and industry to adopt a whole system approach, ensuring the right energy is available in the right place at the right time, enabling a practical, affordable transition to net zero while maintaining the resilience of UK supply chains.

Members can read the paper here.

Latest Logistics Performance Tracker member survey findings

Logistics UK has published the findings from its latest Logistics Performance Tracker member survey, covering Q1 the start of Q2 2026.

Key headlines from this quarter include:

• Modest economic improvement but softer confidence: UK GDP growth rose to 0.6% in Q1, but business outlook eased slightly, reflecting continued uncertainty.
• Near-term outlook remains weak: expectations for Q2 are subdued, with all core metrics viewed more negatively than positively.
• Rising cost pressures: fuel prices are the most significant concern, alongside increasing transport costs, and upward pressure on freight rates across all modes.
• Deteriorating supply chain conditions: disruption to global shipping routes, supplier delays, border friction, and additional paperwork continue to weigh on operations.
• Workforce broadly stable but skills challenges persist: staffing levels remain steady overall, but recruitment difficulties continue for key technical roles such as fitters and mechanics.

Overall, while the sector remains resilient, these findings highlight ongoing cost pressures and global uncertainties that continue to affect business confidence and operational planning.

Members who responded to the survey received a full copy of results, which included additional analysis on supply chain issues, freight rates and staffing levels.

Logistics UK will shortly be launching its next Logistics Performance Tracker; members are encouraged to complete this when live.

If members have any questions, please contact the Insights team.

Opportunity to share your views on Logistics UK membership

To help shape the benefits and services Logistics UK provides, Logistics UK has partnered with independent research agency Red Brick Research to deliver an industry-wide survey, followed by a series of in-depth interviews with professionals across the sector.

The survey takes just 10–15 minutes and everyone who completes it can enter a prize draw to win one of 5 x £100 prizes. Respondents will also have the option to sign up to express interest in a follow-up online interview to share views in more detail.

Please take the time to share your view. It really makes a difference.

Complete the survey here.

Average EU and UK forecourt prices

Please find the average EU and UK forecourt prices here.