Trade Associations call on Chancellor for Green Super-Deduction programme

Friday 24 February 2023

Logistics UK – along with seven other trade associations – has written a joint letter to Chancellor Jeremy Hunt MP, calling for a more flexible Green Super-Deduction scheme, once the current super-deduction programme finishes at the end of March.  

Introduced from 1 April 2021, the super-deduction programme currently allows companies to claim 130% capital allowances on qualifying plant and machinery investments. With the scheme soon coming to an end, Logistics UK is calling for a permanent 100% tax deduction for capital spending, to support the transition to net zero and increased productivity. The joint letter highlights the need for such support to be more flexible than the current approach by extending it to leasing and short-term hire. Logistics UK’s Senior Policy Manager, Denise Beedell, comments: 

“With the deadline for net-zero by 2050 drawing closer and many logistics businesses operating on tight margins, continued support for investment is vital. Businesses are increasingly assessing their operations to transition to greener technologies and, in addition to increased financial pressures, uncertainty remains regarding the best approach for decarbonisation. With costs rising, purchasing assets outright may not be the most economically viable – especially for those who only need use on a part-time basis. As a result, many businesses are looking to lease or short-term hire, so we are calling on government to maintain its support for investment and introduce a more flexible approach.” 

Ms Beedell continues: “Logistics businesses are keen to decarbonise their fleets to meet net zero targets, however, they are already facing a 12.6% rise in vehicle operating costs, a reduction in energy support and a potential 23% increase in fuel duty. The creation of the suggested Green Super-Deduction would provide much needed financial support and encourage greater investment in zero emission technologies.”  

The signatories to the letter are: BVRLA, CECA, EAMA, FLA, Forum of Private Business, Logistics UK, Make UK and MTA. 

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 decarbonisation, 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