Our sector needs support to keep the economy moving
27 Jun 2024
Posted By Richard Smith
This morning, I have spoken to a number of trade associations, and the message was clear across various sectors; businesses throughout the United Kingdom will be looking to the next Government for a clear blueprint for the way ahead. Trade bodies in various sectors want clarity from day one, and business leaders want to see a plan in place to get the UK economy performing at its highest levels, delivering sustainable growth, and benefitting society. The performance of the UK economy and performance of the road haulage and road transport sector are directly linked. Our industry is key to Britain’s economic viability as it contributes £13.5 billion to the UK economy each year. With 98% of all food and agricultural products being transported by road freight, we play a fundamental role in the daily life of the people of this country.
These are still challenging times for many operators in our industry due to rising costs and increased regulations. This week we’ve seen Cartwright Brothers join a growing list of hauliers who've gone into administration. It’s a sad reality that news like this is becoming more regular. Last year almost 500 hauliers went out of business, and regrettably, we’re at almost 170 so far this year already. Higher interest rates and ever-rising running costs have made the cost of running a business in our sector much more expensive this year than last.
To address the real challenges facing industry, collaboration remains key. We want to collaborate with decision-makers who understand the vital part we play in creating jobs and keeping the supply-chain moving. As technologies and regulations change, business owners need clarity, certainty and flexibility so they can confidently invest in the right vehicles, fuel solutions and equipment. We want to see government support to drive the uptake of transitional fuels like HVO to help us decarbonise (HVO reduces emissions by 95% compared with diesel yet costs 30% more). These decisions all have cost implications, so they’re crucial for businesses. For example, we continue to ask for a longer grace period to prepare hauliers for London’s new DVS specifications.
When costs increase, goods become more expensive. We spelled out in our manifesto that government must relieve the tax burden on our industry to support economic growth. We therefore want the next Government to commit to the continued freeze on fuel duty. We’re also calling for the suspension of the HGV levy. These would be important steps to show early on that Government supports drivers and the commercial vehicle industry.
Our sector also needs a sensible skills policy that addresses shortages that impact productivity. Addressing skills gaps such as a shortage of technicians (HGVs, LGVs and coaches) will require collaboration to train, and retain talent. We want to see the apprenticeship levy reformed – replaced by a skills levy which will better serve our industry’s needs. It's vital too that we see our roads and roadside facilities improved. That will require infrastructure investment- specifically along the strategic road network, which is key to the frictionless movement of goods.
In addition to increased cost pressures, locally and nationally - our sector is one of the most heavily regulated industries in the UK. When regulations grow, it becomes more expensive for businesses to comply. We see different and often contradictory regulations in towns and cities across the country, with red tape at our borders; all this further impacts HGV, LVG and Coach businesses.We want the next Government to carry out a review road freight regulations so that they can be simplified and significantly reduced. On behalf of our members, we'll continue to make all of these points and we’ll continue to highlight our six priorities (as outlined in our manifesto.)
Whatever the outcome of the election, we stand ready to engage and collaborate with government to support our members and the industry to drive economic growth.
READ more about our specific asks on costs and regulation HERE
READ more about all of our 2024 General Election asks HERE