“The Chancellor’s decision to freeze fuel duty for a further year is welcome news for the logistics sector.
“Nothing moves without logistics: the sector supplies our hospitals, schools, factories, shops and homes with everything they need, everywhere, every day.
"The logistics industry is vital to any plans to stimulate growth across the economy, and this respite is welcome news for a sector already seeing increasing business failures over the last year.
“The industry operates on very narrow margins – often only 2.5% - with fuel representing a large proportion of the weekly operating cost for hauliers.
Logistics businesses will be weighing up the welcome announcement on fuel duty with increases in taxes for businesses in other areas. The Chancellor also announced that Employer National Insurance will rise to 15% and the threshold at which employers start paying National Insurance on a worker's earnings will be lowered to £5,000.
This, coupled with increases to minimum wage levels, Vehicle Excise Duty rates and the HGV Road User Levy, plus the business rate multipliers increasing for the most valuable properties, will mean a higher overall tax bill for many logistics businesses.
“Logistics powers every part of the UK’s economy,” continues Wells, “It is the UK’s system for growth – time will tell if today’s package of announcements will drive confidence in our sector’s ability to deliver for its customers.”
