1. Fuel Duty remains frozen
The new Chancellor of the Exchequer, in her first Budget, froze Fuel Duty for a further 12 months to March 2026 and also announced she is maintaining the 5 pence per litre cut. Logistics UK had been campaigning for this at a time when the industry is facing increasing cost pressures from rising wage and fuel costs. Maintaining the Fuel Duty cut provides logistics businesses with more certainty as they drive the transition to a greener economy.
2. New logistics unit in the Department for Business and Trade
The new team is establishing relationships with logistics businesses and joining the dots with other relevant parts of government for the sector. This is a positive development for logistics and reflects Logistics UK’s call for the sector to be recognised for its importance to UK plc and to be considered a key stakeholder on decisions beyond the Department for Transport.
3. Economic growth at the heart of the King's Speech
In the summer, the King’s Speech outlined the new government’s legislative programme, putting economic growth at the centre of its ambitions. Announcements included a new Planning and Infrastructure Bill to accelerate infrastructure delivery, including by streamlining the delivery process for critical infrastructure and allowing building on the ‘grey belt’, the establishment of Great British Railways (GBR) under the Rail Reform Bill (alongside continuing to back the rail freight growth target), and the introduction of the Sustainable Aviation Fuel (Revenue Support Mechanism) Bill.
4. Delay to the introduction of the EU Entry and Exit System
The European Commission delayed the introduction of the EU Entry and Exit System (EES), which will require non-EU travellers to provide biometric information, such as fingerprints and facial scans, at the border. Logistics UK has continually raised concerns about the knock-on impact on freight and GB EU trade if EES was introduced as planned on 6 October. We have been calling for a delay and for mitigation measures to be put in place to help reduce the impact on hauliers.
5. Planning for infrastructure projects
At the end of the year, the government published the new National Planning Policy Framework (NPPF), which instructs planners to support the economy by identifying suitable locations for freight and logistics, and says local planners are to have regard to industries of national importance, to support economic growth. Logistics UK responded to the NPPF consultation and supports the commitment to fast-track planning decisions on at least 150 major economic infrastructure projects and reforms, outlining how logistics is critical to economic growth.
6. Growth and Skills Levy
The government has announced a significant policy shift to replace the Apprenticeship Levy with a Growth and Skills Levy. This development introduces greater flexibility, including funding for shorter apprenticeships and foundation apprenticeships. These changes are a direct response to the evolving needs of the UK workforce, as highlighted by Skills England, a newly established body tasked with assessing national skills priorities.