Shadow Treasury Minister raises concerns over how the Budget will impact logistics   

The Finance Bill, which carries the fiscal measures of the Autumn Budget, was debated in committee on 30 January, and Shadow Exchequer Secretary to the Treasury James Wild – referring to a briefing provided by Logistics UK, noted that the government’s decision to increase VED and the HGV Road User Levy from April comes at a difficult time for logistics businesses, especially when combined with the increase in employer National Insurance contributions. 

He also called on the Chancellor to assess the impact of these changes within six months of the Bill’s passage. Logistics UK has estimated that the VED and the HGV Road User Levy increases mean that these taxes will now cost HGV operators £172 million and £178 million respectively, each increasing by £6 million. 

Ben Garratt, Logistics UK's Deputy Director Public Affairs said: "It is important the concerns of our sector were raised in Parliament during the passing of the Finance Bill. Our members are facing significant cost pressures, notably the estimated £1.7 billion increase for the logistics sector in employer National Insurance Contributions. This puts further strain on investment across the industry, including into measures to support decarbonisation. Logistics UK will continue to highlight these concerns to decision-makers."