Spring Statement – RHA calls for Government support to boost economy

The RHA has submitted its asks to the Treasury ahead of the Spring Statement on 6 March.

They are calling on the Chancellor to support the thousands of HGV, coach and van operators across the country who keep Britain moving through the following key measures:

1. Continue the freeze on fuel duty and maintain the 5p cut.

2. Temporary suspension of Vehicle Excise Duty on HGVs and the HGV Levy

3. An emissions-linked rebate on fuel duty on alternative fuels.

4. An essential user rebate on fuel duty for commercial operators.

5. Reform of business rates to support transport businesses operating warehouses.

6. Help businesses suffering from higher interest rates by extending full expensing to the cost of vehicle leasing.

7. Reduction in insurance premium tax which disproportionately impacts road transport operators due to the number of mandatory insurances.

8. Encourage training providers and colleges to offer heavy vehicle mechanic apprenticeships by increasing the funding band available to at least £23,000.

This comes against a backdrop of huge financial pressures squeezing the industry.

The cost of operating a 44-tonne HGV rose by nearly 10 percent (excluding fuel) last year as more than 450 haulage firms went bust amid falling freight volumes.

Richard Smith, RHA Managing Director, said: “We are calling on the Government to focus on stability, long-term growth and targeted support to tackle the major challenges the road transport industry currently faces to ease cost pressures on operators.”

The RHA launched its haulage manifesto earlier this month at its Parliamentary Reception setting out a vision to support the industry and boost the economy.

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Notes for Editors

The RHA’s full list of recommendations in their submission to the Treasury:

Continue the freeze on fuel duty and maintain the 5p cut

Temporary suspension of Vehicle Excise Duty on HGVs and the HGV Levy

An emissions-linked rebate on fuel duty on alternative fuels.

An essential user rebate on fuel duty for haulage firms

Reform of business rates to support transport businesses operating warehouses.

Help for businesses suffering from higher interest rates e.g. extending full expensing to the cost of vehicle leasing

Reduction in insurance premium tax which disproportionately impacts road transport operators due to the number of mandatory insurances

Reform the Apprenticeship Levy into a wider Skills Levy for apprenticeships and approved vocational courses, such as Skills Bootcamps.

Extending the skills bootcamps to include bus and coach licence training and entry level heavy vehicle technician training such as tyre fitting and vehicle inspections.

Open up the National Skills Fund to all levels of training and cater for the many skilled occupations that require foundation and intermediate level training to take up entry level roles which are vital to economic growth.

Give a 10% uplift to all apprenticeships that have not seen increases since 2017.

Encourage training provider and college take up of heavy vehicle mechanic apprenticeships by increasing the funding band available to at least £23,000.

The National Planning Policy Framework needs to be strengthened to make it easier to secure planning permission for lorry parking facilities, including mandating local authorities to provide enough facilities and overnight parking for lorries to meet demand. We await the consultation outcome from DLUHC.

Provide ring-fenced funding for local authorities for designated lorry parking. The Designated Funding provision in Road Investment Strategy 2 (RIS2) for Lorry Parking on the Strategic Road Network must be ring fenced. All road improvement schemes need to include lorry facilities and parking provisions from the outset.

Establish a cross-departmental taskforce to review existing driver facilities and work with industry, operators, and local authorities on a viable long-term solution to increase available facilities across the country.

The Government should provide a fiscal incentive through an emissions-linked rebate to encourage a move to low carbon fuels, such as HVO.

Support our vital small businesses as they plan their net zero investments, ensuring there is a realistic timescale and regulatory certainty for the phase-in of low and zero emission vehicle technologies.

Commit to creating a commercial vehicle decarbonisation roadmap that supports investments and accommodates the diverse nature of haulage and coach operations.

Accelerate investment in the infrastructure needed to power zero emission lorries and coaches.

Perform a review of Clean Air Zones and their effectiveness in improving air quality – with a commitment to learning the lessons from their implementation and ending schemes where appropriate levels have been met.

Put in place measures to prevent local authorities introducing charges designed to incentivise the uptake of zero emission vehicles before the vehicle market can deliver.