🕒 Article read time: 2 minutes
Shadow Treasury Minister raises concerns over how the Budget will impact logistics
James Wild MP said that incoming tax increases will impact the sector’s investment and decarbonisation efforts, and asked for clarity on whether the Plug-in Truck Grant will continue.
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."
Published On: 06/02/2025 13:57:48
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News In Brief
Italy’s high speed freight train service is scrapped
Mercitalia Fast was a pilot project launched in Italy for high-speed rail freight services. However, the venture struggled to demonstrate success and now the adapted wagons will be scrapped.
The train ran for four years between 2018 and 2022 after a high-speed passenger train was modified to enable freight transport - the first attempt at high-speed rail freight in Europe, with Amazon being the sole customer.
Increasing the speed of freight trains has proved to be problematic. In Russia, for example, trains are now actually running at lower speeds than in the 1960s, and competitive transit times between Europe and Asia are key to further develop rail freight services on this axis.
Running heavy trains at high speeds is not an easy feat, especially if it would concern trains crossing borders, where different (usually old) infrastructure would not allow for such services.
Ellis Shelton, Logistics UK's Senior Policy Advisor, said: "Speed is not the sole factor in rail freight efficiency - capacity, reliability and cost-effectiveness are equally critical.
"While high-speed rail freight may have niche applications, particularly for time-sensitive goods, the broader industry focus should remain on improving network interoperability, upgrading ageing infrastructure and ensuring competitive transit times across key corridors. For sustainable growth, rail freight strategies must balance innovation with operational practicality."
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