Comment on today's Autumn statement from Logistics UK
Thursday 17 November 2022
In response to today’s Autumn statement, business group Logistics UK is encouraged that the government has prioritised stability for the economy after a period of volatility, which will help restore confidence for businesses. However, as Kate Jennings, the organisation’s Policy Director explains, there is also disappointment 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,” she says. “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.”
Logistics UK is one of the UK’s leading business groups, representing logistics businesses which are vital to keeping the UK trading, and more than seven million people directly employed in the making, selling and moving of goods. With COVID-19, Brexit, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc. Logistics UK supports, shapes and stands up for safe and efficient logistics, and is the only business group which represents the whole industry, with members from the road, rail, sea and air industries, as well as the buyers of freight services such as retailers and manufacturers whose businesses depend on the efficient movement of goods.