Back the sector that keeps Britain moving: RHA responds to Bank of England inflation warning

Andrew Bailey – the Governor of the Bank of England – has warned MPs that risks to inflation remain “on the upside” as fears grow about the impact food prices will have on consumers.

He said energy price volatility is key, as the Middle East conflict continues to trouble the world economy.

Brent crude has breached $100 a barrel again today, continuing a significant upward trajectory since recent diplomatic efforts to ease tensions have fallen short; the commodity was trading at around $70 before hostilities began at the end of February.

The cumulative effect on the economy of more than six months’ global turbulence is undeniable and there’s not a great deal of optimism on the horizon.

The Food and Drink Federation gives the impact tangibility, forecasting that food inflation will hit close on 4% by Christmas; they say it will continue to rise well into next year, peaking at 6.4% in July.

The cost of moving people and goods, meanwhile, rises – and that will be well noted at the Treasury ahead of the Chancellor’s Budget next month.

Our low-margin industry is already struggling with cost pressures as hundreds of transport businesses go bust every year. And with a gloomy outlook for the economy coming sharply into view, we urge ministers to act now to protect businesses and jobs in the haulage, coach and van sectors – and beyond – with measures to slow down inflation.

We urge the Chancellor to scrap plans to increase fuel duty in the new year, and to not go ahead with linking it to RPI in April.

An essential user rebate – similar to those launched in other countries – would help transport operators and others in the supply chain right now to reduce the cost of doing business.

And we’re calling for the uptake of low-carbon fuels such as HVO to be incentivised through a rebate scheme to help operators who are decarbonising their fleets.

The Chancellor has an incredibly difficult balancing act to strike with every sector delivering their strong cases for support. We will too, making the point that our sector is an undeniably key economic enabler.

Our message to Mr Healey ahead of the 28 October Budget is to back the businesses that keep Britain moving.