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Budget submission addresses four critical areas
Rishi Sunak, the Chancellor of the Exchequer, is widely expected to announce the details of his Budget on 3 March 2021.
Along with HM Treasury’s expectations for the UK economy, the announcement will include the much-anticipated plans for spending and taxation.
Logistics UK has submitted the opinion of the industry to the Chancellor for consideration when compiling the Budget. In its submission, Logistics UK underlines how essential the UK’s logistics network will be to achieving the government’s goals in the remainder of the parliament and beyond. The submission groups the topics into four key categories: fuel taxation, decarbonisation, infrastructure investment and skills.
FUEL TAXATION
The submission makes the argument that now is not the time for an increase in Fuel Duty, as this could dampen the economic recovery and potentially reduce future tax revenue. It further argues that increasing tax on diesel or eliminating the use of red diesel is likely to reduce the take-up of more environmentally friendly commercial vehicles and that a potentially more effective approach would be to introduce a wider range of duty differentials.
DECARBONISATION
The long-term viability of logistics is tied to decarbonisation, the submission argues. Grants and financial support will be key to helping operators looking to make their operations multimodal, as will investment in charging infrastructure. Logistics UK believes that these will be key to helping the industry recover and develop whilst supporting the wider economic recovery.
INFRASTRUCTURE INVESTMENT
Clear and developed infrastructure plans will be critical to the realisation of the government’s goal to level up the regions and nations of the UK, the submission maintains. Beyond infrastructure construction, this requires a vision which logistics will both deliver and benefit from. The submission makes the case for continued long-term commitment of funds to deliver and maintain road investment and rail enhancements.
SKILLS
Practical and deliverable ways of ensuring the nation has the skills it needs will be essential to the long-term economic recovery of the UK, the submission argues. Against the backdrop of rising unemployment, the logistics sector could support the recovery and provide employment. A gap in skills and the inability to use the Apprenticeship Levy funds to address this is hindering entry of new employees into the industry, however. The submission makes the case for reforms that would enable the logistics industry to invest in skills to the benefit of the UK economy and for interest-free loans or grants to support driver training.
*www.logistics.org.uk/campaigns/logistics-and-the-economy
Published On: 28/01/2021 15:30:11
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