Prime Minister's speech a sobering reminder on state of economy

The Prime Minister’s speech yesterday was a sobering reminder of the state of the economy.

He said unequivocally that that there will be pain along the way as we recover – and we’ll have a clearer picture of what that looks like when the Chancellor delivers her Budget on 30 October.

This is an exceptionally difficult time for our industry with record numbers of insolvencies as many operators are no longer able to cope with relentless cost pressures and continuing drops in volumes they’re moving.

But we have to stand up and support the Government to deliver on their mission to drive economic growth – and we’ve articulated measures ministers can take to help our industry do its part through our Mission Driven: A Blueprint for Delivery.

Many will take heart that the Prime Minister reiterated that his government won’t increase National Insurance, VAT and Income Tax. We’ve made it clear that relieving the tax burden on our industry will support growth.

We urge the Government to extend full expensing to the cost of leased asset vehicles which would support more investment in zero-emission vehicles and infrastructure.

We’re also calling on ministers to introduce an emissions-linked rebate on fuel duty to make UK businesses more competitive with their counterparts across the Channel. Incentivising the uptake of low-carbon diesel alternatives like HVO – which can reduce emissions by 90 percent – would speed up decarbonisation.

Better access to funding would also help our industry drive economic growth through the National Wealth Fund, as will the pledged reform of the Apprenticeship Levy to help operators recruit and train people into key roles.

Improvements to our road network will also help – one example would be the Lower Thames Crossing – as congestion costs the UK economy £30bn each year.

We’re realistic that the Government has a huge task ahead to fix the economy which is why we’re committed to offering solutions which will drive the growth that will support our sector and the economy as a whole.