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The Budget in focus 2: Some further detail


Positives for the logistics sector include:

• Fuel duty is frozen at the current rate, including the temporary 5 pence per litre cut, for a further 12 months. 

• The Plug-in Van Grant is to be maintained in 2025/26. However, there was no news on whether the Plug-in Truck Grant will continue, so we are seeking clarity on that.  

  • £200 million to be invested in the public charging network in 2025/26. However, there was no mention of the Rapid Charging Fund, so we are seeking clarity on whether that will continue. 
  • When Vehicle Excise Duty is introduced on electric vans from 1 April 2025, it will be at a low rate compared to diesel vans. 

  • The Employment Allowance is increasing to protect the smallest businesses from the National Insurance contributions rise. 

 

• An additional £5 million to be invested in improving the planning regime for Nationally Significant Infrastructure Projects, as well as £46 million to boost capacity and capability in local planning authorities.  

• An additional £300 million for further education courses and £40 million to launch shorter and foundation apprenticeships. However, there were no timescales given on the reform of the Apprenticeship Levy into the more flexible Growth and Skills Levy, or how and when courses to be eligible for funding will be identified by Skills England.  

• Full capital expensing to be maintained to support investment. However, disappointingly, there is no firm plan to extend full expensing to leased or hired assets, and no plans to extend it to cover the fees paid to energy network operators to deliver the upgrades needed for depot charging.  

• £134 million to support the delivery of port infrastructure to facilitate floating offshore wind.  

• Green hydrogen projects to be funded.  

• The Advanced Fuels Fund to be extended for a further year to support the producers of Sustainable Aviation Fuel.  

• Companies supplying critical minerals to UK exporters to be able to access UK Export Finance support.  

Negative announcements: 

  • Employers’ NI contributions will rise to 15% from 1 April 2025, and the level at which employers start paying NI for workers will drop from £9,100 to £5,000. Increases in the National Living Wage and National Minimum Wage will further increase the costs of employment. 

  • VED rates and the HGV Road User Levy will rise with inflation from 1 April 2025.  

  • Business rate multipliers on the most valuable properties will increase from 1 April 2025, to enable a lower rise for the rates paid by retail, hospitality and leisure properties.  

  • Road Investment Strategy 3 will be delayed by a year to 2026/27 and the following RIS2 projects have been cancelled: A5036 Princess Way, A358 Taunton to Southfields, M27 J8 Southampton, the A47 Great Yarmouth, Vauxhall Roundabout and A1 Morpeth to Ellingham. 

  • Departments must find 2% savings, which could impact projects that are important for logistics. 

 

There was also a disappointing lack of news in the following areas, and we will be pressing for the relevant government departments to back them:  

• Co-funding year three of the Generation Logistics campaign.  

• Incentives for low carbon fuels, other than Sustainable Aviation Fuel.  

• Mode shift grants.  

• The Freight Innovation Fund, UK SHORE and other programmes to support freight innovation and decarbonisation. 

  • Funding to improve facilities for HGV drivers. 

The Budget also failed to comment on the impact of EU exit on trade, with the OBR document published the same day stating that “weak growth in imports and exports over the medium term partly reflect the continuing impact of Brexit, which we expect to reduce the overall trade intensity of the UK economy by 15 per cent in the long term.” 

Published On: 07/11/2024 15:16:34

 

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News In Brief

Heathrow announces strategic partnership with Swissport

The leading aviation services provider has launched a new facility at the UK airport in a strategic investment as part of an overall growth plan.

Swissport, a leading global provider of airport ground services and air cargo handling, today announced the launch of a brand-new cargo facility at London Heathrow Airport (LHR). The launch marks Swissport’s oncreased prescence in the cargo sector, following a 17% increase in cargo tonnage in the year to date.

Strengthening its presence at one of the world’s busiest airports, Swissport is fueling its ongoing expansion in the rapidly growing air cargo market, with a further launch set to be announced at Gatwick, and expansions planned at East Midlands, Manchester, and Stansted airports.

"Our new facility at Heathrow is a cornerstone of our global air cargo expansion strategy. It not only enhances our service capabilities at a critical global hub but also demonstrates our commitment to investing in infrastructure and technology to meet the growing demands of the air cargo industry.” said Joe Bellfield, Chief Operating Officer of Cargo.

 

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