General
Government must tackle the spiralling cost of doing business
Richard Smith
19 Jan 2026
The cost of doing business is rising too fast. As our recent cost report showed, operating expenses jumped 5.91% last year, and businesses in our space across the UK are telling us they're concerned. With profit margins averaging just 2%, many HGV, Coach and Van firms faced tough decisions in 2025: Delaying investment, consolidating operations, and prioritising survival.
While insolvency rates have slowed slightly, they remain far too high and well above pre-pandemic levels. The numbers in road freight tell a sobering story. Approaching 400 hauliers went out of business last year, with 470 the year before and over 500 in 2023. Higher interest rates increased regulatory and compliance demands, and ever-rising running costs continue to make trading more expensive. This has resulted in many established firms sadly going to the wall.
Take fuel costs alone, which account for a third of overall expenses in road transport. UK diesel prices remain much higher than most European nations, putting businesses here at a competitive disadvantage. Add new tax and budgetary considerations, and you've a system that's presently making investment and growth increasingly difficult to sustain.
But there's room for optimism. This week's ONS GDP figures came in at 0.3%, better than expected, suggesting the economy showed much more resilience towards the end of 2025 than economists previously indicated. Government should seize the moment. If ministers are serious about a healthy economy, they need to work collaboratively with industries like ours that are crucial to delivering it.
Let's work towards reducing business rates, energy costs, and creating balanced employment legislation. Lowering the cost of doing business simply must be a Government priority this year to unlock the investment and growth this country needs. As ever, I welcome your thoughts.