🕒 Article read time: 2 minutes
Growth Plan misses Fuel Duty opportunity, says Logistics UK
Logistics UK has welcomed the government’s actions to help address growing business costs, particularly energy prices, following its announcement of its Growth Plan last Friday (23 September 2022).
Additional measures, such as changes to IR35 and National Insurance contributions, will give logistics businesses, including SMES (small to medium-sized enterprises), welcome flexibility, the business group has said.
Speaking in response to the Chancellor’s announcement in the House of Commons, Kate Jennings, Director of Policy at Logistics UK, said: “Investment zones to support further industrial and commercial developments nationwide are a positive step. Logistics is a growing sector, which already supports many of the ‘levelling up’ regions of the UK. To maximise the potential growth opportunities of these zones, it will be important to include the logistics industry in the delivery of these proposals.”
According to the business group, however, the failure to cut Fuel Duty was a major missed opportunity.
“Even with the changes announced, energy – including fuel costs – will be rising to 28% of business costs over the next year,” Jennings continued, “Diesel is the single biggest operating cost for logistics businesses, which drive all sectors of UK PLC.”
In the six months to 1 July 2022, diesel costs for operators rose by almost 50%. As a result, Logistics UK has consistently called for a further 6p per litre cut in duty, which it estimates would result in an average saving of £2,830 per year, per 44-tonne truck.
“For the 99% of the road logistics industry who are SMEs, they may have no choice but to pass on these costs to consumers and for key workers,” Jennings warned, “including those who work in logistics, the cost of travelling to work is a major cost-of-living issue.”
*www.logistics.org.uk/fuel
Published On: 29/09/2022 16:00:54
Comments Section
If you are a Logistics UK member login to add comments.
