Growth plans misses fuel duty opportunity, says Logistics UK

Friday 23 September 2022

Speaking in response to today’s (23 September 2022) government announcement of its Growth Plan, Kate Jennings, Director of Policy at Logistics UK, comments: “Logistics UK welcomes government’s actions to help address growing business costs, namely energy prices. Additional measures announced today, such as changes to IR35 and National Insurance contributions, will give logistics businesses, including SMES, welcome flexibility.

“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.

“However, there is a missed opportunity on fuel duty. Even with the changes announced this morning, energy - including fuel costs - will be rising to 28% of business costs over the next year. 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, 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, including those who work in logistics, the cost of travelling to work is a major cost-of-living issue.”

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.