Budget needs to give businesses room to breathe

On the road to the November budget, we'll be outlining some key asks of Government on behalf of the wider road transport and logistics sector. We'll be sending our budget submission to Government, clearly setting out measures necessary to protecting not just our vital industry, but key to boosting that long promised economic growth.

As I travel across the country speaking to many business owners, there's genuine concern in different industries about what lies ahead. Businesses in our space are already feeling the squeeze from multiple directions. For many already operating on lower profit margins, additional cost pressures like National Insurance Contributions have presented challenges when running costs remain stubbornly high.

Take fuel prices as a prime example. We've witnessed some recent increases stemming, in no small part, from escalating oil costs. For transport businesses, fuel still represents a significant portion of their operating expenditure (already amounting to a third of overall costs). Companies in Britain continue to face a competitive disadvantage across European markets, with diesel prices remaining much higher here than most European nations.

As the Chancellor seeks to "fill a black hole in public finances," she's faced fresh calls from some quarters to end the fuel duty freeze. We'll be outlining in detail precisely why this would have serious consequences for many businesses, households and the overall economy.

Any increase in fuel duty will directly impact consumer pricing and the cost of living as cost increases inevitably flow through the supply chain and eventually onto shelves and into kitchen cupboards. Equally, if there's a significant fuel duty rise (which has been speculated upon in some media outlets), many businesses crucial to the fluidity of the supply chain will struggle, with some smaller firms potentially going to the wall altogether.

Last year as a sector, we demonstrated that a 5p increase could slash £430 million from Britain's national income annually for five years. This year we'll provide further clear cut examples of why fuel costs matter in homes and businesses nationwide.

With speculation rife about other potential tax rises, businesses are still understandably cautious when it comes to spending decisions, caught between rising costs and competitive pressures. In the run up to the budget, we'll be outlining how a freeze on Vehicle Excise Duty for HGVs would help to reduce cost pressures for key road freight transport and logistics firms. Keep an eye on RHA pages in the weeks and months ahead as we'll be outlining all of this clearly.

If the Chancellor is serious about delivering longer-term recovery and growth, November's budget must recognise that businesses key to a healthy, functioning economy, and capable of boosting that growth - need room to breathe. That means lessening, not adding to their economic burden. There'll be plenty more on all of this from us in the weeks and months ahead.