Member News – 03 June 2026

3 June 2026

In this issue:

• The Logistics Report 2026 launches today.
• Further clarification on new £1 vehicle tax rate for some HGVs.
• Government legislates Seventh Carbon Budget.
• Reminder that regulatory flexibilities introduced for zero emission vehicles up to 4.25 tonnes are now live.
• Middle East disruption: briefing for members.
• National Vehicle Crime Intelligence Service.

The Logistics Report 2026

Logistics UK has today (3 June) launched The Logistics Report 2026 at its Annual Conference. The report explores the logistics sector’s economic contribution, current challenges, and the policy action needed to unlock its full potential.

It comes at a time of continued disruption related to the ongoing conflict in the Middle East, rising costs and policy shifts creating a difficult operational environment.

Headline figures include:

• In 2024, the sector increased its GVA (Gross Value Added) contribution to the economy by 3.1% from 2023, rising to £175 billion.

• The sector represents 8.0% of the UK workforce, with 2.6 million employees.

• Road accounts for 81.8% of domestic goods moved, whist rail accounts for 8.0% and water, 10.2%.

• Logistics helps enable over £1 trillion in UK trade, connecting businesses to domestic and global markets.

Members can download a free copy of the Summary Report here.

Further clarification on new £1 vehicle tax rate for some HGVs

Further to the item in enews last week, DVLA has confirmed that from 1 July 2026, some HGVs will qualify for a temporary £1 vehicle tax rate for 12 months. DVLA has clarified this will only apply to vehicles in the following tax classes:

• 1 (HGV). 
• 2 (Trailer HGV).
• 16 (Small Island).
• 23 (Combined Transport).
• 57 (Special Types).

The £1 vehicle tax rate will be available for vehicles taxed between 1 July 2026 and 30 June 2027. Vehicles taxed before 1 July 2026 will be charged at the current rate, and no refunds will be issued.

If a vehicle is liable for the HGV levy, it will continue to be charged at the existing rate. A revised V149/1 will be published, and an information page will be available on GOV.UK shortly. If members have any questions, please contact the Member Advice Centre.

Government legislates Seventh Carbon Budget

The government has set out its proposed level for the Seventh Carbon Budget, an 87% emissions reduction target for the period 2038 to 2042, backed by the Climate Change Committee and Environmental Audit Committee.

Once approved by Parliament, government aims to publish a delivery plan setting out how Carbon Budget 7 will be met.

Reminder that regulatory flexibilities introduced for zero emission vehicles up to 4.25 tonnes are now live

A further reminder that the regulatory flexibilities introduced for zero emission vehicles up to 4.25 tonnes came into force this week, taking effect from Monday 1 June.

It now means these vehicles are no longer required to have a tachograph installed and the driver is required to adhere to GB domestic drivers’ hours, rather than assimilated hours (the new name for EU hours). The vehicles have moved into Class 7 MOT. DVSA has issued guidance on what operators need to do to ensure they remain compliant with the roadworthiness testing requirements.

The Member Advice Centre has produced a briefing note for members on this topic, which can be downloaded from here, alternatively, members can contact the Member Advice Centre for further information.

Middle East disruption: briefing for members

The Middle East conflict is continuing to impact logistics and supply chains, including pushing up the price of fuel and leading to increased costs associated with managing supply chain disruptions.

The Middle East conflict is continuing to impact logistics and supply chains, including pushing up the price of fuel and leading to increased costs associated with managing supply chain disruptions. This is putting acute pressure on logistics businesses and, as logistics businesses typically operate on narrow margins, higher costs for consumers too.

Logistics UK welcomes the government’s announcement on 20 May 2026 to delay the planned fuel duty increase from September to the end of the year, and to provide a 12-month road tax holiday for HGVs, and reduce the red diesel duty rate for rail freight, to prevent further inflationary pressure at a time when the global economy is so disrupted. 

Additionally, we are calling for government to: 

• Formally recognise logistics as a priority fuel user within its resilience planning.
• Include logistics in the British Industrial Competitiveness Scheme (BICS) to cut electricity costs.
• Extend full expensing to leased zero-emission commercial vehicles.
• Introduce an incentive for logistics businesses to use liquid low carbon fuels, to support the shift away from traditional fuels.
• Pause business rates increases and reforming the system.
• Take a longer-term approach to mode shift grants, to enable businesses to plan alternative transport approaches with greater confidence.

We are also: 

• Expressing support for the government’s action to tackle late payments.
• Urging the government to monitor narratives related to profiteering and to manage media and social media communications to help prevent fuel and other commodity shortages driven by panic buying.

Logistics UK has a three-point strategy during this crisis: sharing insight with members; informing government and other key stakeholders of the impact on our sector; and urging government to provide support to our sector.

Read our latest Middle East update here which includes data on fuel prices.

National Vehicle Crime Intelligence Service

The fortnightly National Vehicle Crime Intelligence Service (NaVCIS) Freight Crime Intelligence Bulletin provides relevant and up to date information and intelligence to police and the logistics industry for the prevention and detection of crime.

Read the update here.

The NaVCIS Freight – Quarter 1 – Freight Crime Report for 2026 is also available to read here.

Average EU and UK forecourt prices

Please find the average EU and UK forecourt prices here.