Government must support hauliers in coronavirus crisis
16th March 2020
The RHA is imploring Government to pledge immediate financial support for hauliers who face going out of business because of the coronavirus crisis.
RHA chief executive, Richard Burnett told transport secretary, Grant Shapps that many hauliers have already reported catastrophic effects on their businesses as the volumes of goods drop sharply. Container volume from China has fallen by more than 70 percent in the last six weeks and the flow of goods from Europe is becoming increasingly disrupted.
He said there’s been an artificial spike for manufacturers delivering into the retail supply chain which will no doubt at some point settle once the nation has stocked up. But he warned that there could be uncertainty with the possibility of retail and food outlet closures in the weeks to come driving a downturn in volume.
Hauliers supporting the entertainment sector are facing an immediate collapse as concert tours and major sporting events are cancelled; one firm reported that tours worth millions have been cancelled over the next three months impacting those hauliers directly.
Mr Burnett said the transport industry is integral in keeping the UK moving and called on the transport secretary to undertake a series of measures to ease the burden on operators as the crisis unfolds.
These include immediate cash flow injections, deferment of tax payments, and a delay to the launch of clean air zones by at least six months.
Mr Burnett said: “We need to get immediate financial relief into these businesses over and above the measures announced in last week’s Budget.
“Without this support businesses will risk closure as 85% of the haulage market is SME and holds no more than two to three weeks of cash flow. Any drop in volume will mean businesses can’t be sustained.
“The Government will need to provide more radical financial support to ensure they survive.”
Notes for editors:
The RHA calls on the Government to address the following:
• Immediate cashflow injections
• Enforced payment holidays with leasing companies, banks and fuel suppliers
• Measures to protect employees’ wages
• Deferment of VAT, income tax, business rates and corporation tax
• Road fund licence reductions
• Deferment of the implementation of clean air zones rules by at least six months
• Deferment of the Direct Vision Standard in London by at least six months
• Relaxing lorry tolls on the M6 and others
• Suspension of the London Lorry Control Scheme and Low Emission Zone charges
• Fuel duty reductions for essential users including hauliers
• The ability to quickly relax drivers’ hours
• Increasing driving time and relaxing weekly and fortnightly rest requirements