Chancellor’s measures could stifle the switch to green energy, says Logistics UK

While encouraged that the government has prioritised stability for the economy after a period of volatility, which will help restore confidence for businesses, Logistics UK is disappointed that some of the measures announced could stifle the switch to greener energy.

“The government’s announcement of continued infrastructure investment for Northern Powerhouse Rail, the HS2 extension to Manchester and the East West Rail link is good news for logistics businesses looking to strengthen cross-country connections with their customers,” said Kate Jennings, Policy Director, Logistics UK (pictured above left). “However, the removal of Vehicle Excise Duty (VED) relief on vans is an unhelpful signal for millions of businesses at a time when they are being encouraged to move away from diesel. Most logistics operators work on very narrow margins, with vehicle acquisition schedules planned way in advance to minimise disruption to cash flow.

“At a time when operators are already facing increased operating costs, the additional tax imposition will create an additional burden: our sector needs more incentives to make the switch to alternative fuels, rather than barriers on the road to net zero.”

*www.logistics.org.uk/environment

Published On: 17/11/2022 16:00:29

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