RHA publishes submission ahead of Chancellor's Autumn Budget

RHA submits recommendations to UK Government ahead of Autumn Budget

We have this week submitted our recommendations to the UK Government ahead of the 2024 Autumn Budget on 30 October. The upcoming Autumn Budget will be a challenging one for the Chancellor, but it will be an even more challenging twelve months for the road transport sector without measures in place to support it.
Over the course of the next few weeks, we will set out in detail our key asks and recommendations to Government at a crucial moment for our industry and the UK economy.

Commenting, RHA Managing Director Richard Smith says:

Our sector is a key economic enabler and is central to the Government’s mission to deliver economic growth. With cost pressures rising, increasing regulatory pressures and with growing numbers of insolvencies, these are difficult times for many operators. We need the Government to minimise the burden on businesses to ensure the road transport sector is there to deliver for the rest of the economy.

In our recently published Blueprint, we set out some key recommendations to kick-start growth. In our submission ahead of the budget we've again made it clear that industry and Government working together to address key issues will be vital in improving roads, tackling freight crime, decarbonisation and ensuring we have the right skills for the future economy. Central to the Government’s mission is the frictionless movement of goods on our roads which allows businesses to grow, local economies to thrive, and jobs to be created. Ambitious roads investment is crucial to improving routes, improving connectivity and keeping the supply-chain moving

Fuel prices continue to put a massive strain on budgets with diesel excise duty in the UK higher than anywhere else in Europe. With margins tight, the last thing businesses need is a rise in fuel duty. By introducing an essential user rebate, the Government would reduce the competitive disadvantage that has held back UK hauliers. This would also reduce some of the pressures that have driven consumer prices higher.

The cost of decarbonising HGVs, estimated to be £100bn, is astronomical. On the road to net zero, our industry needs a clear roadmap so that all haulage and coach businesses can make that journey.

The skills shortage in the road transport sector is a chronic issue that continues to affect supply chains. With an ageing workforce, a skills shortage in areas such as vehicle technicians, building the foundations for a future workforce has never been more important. We want to see a skills revolution that will break down barriers to opportunity and equip our industry for the challenges that lie ahead.

Labour's long-term vision for growth cannot be achieved without taking the right action now to support a sector which is crucial to the economic health of this country.

We stand ready to work with decision makers on solutions and opportunities to support our industry which will deliver wider economic benefit across the UK.


You can read our full budget submission including the full set of recommendations HERE

Brief Summary of RHA recommendations:

Continue the freeze on fuel duty. A 5p rise in duty would cut GDP after 5 years by £430 million per year; cuts employment by over 5000 and raises CPI by 0.2%.[1]

Introduce an essential user rebate for essential commercial vehicle operators to reduce the cost of supply chains and inflationary pressures.

Introduce a fuel duty rebate linked to emissions reduction This will encourage the use of low carbon fuels that can reduce emissions from the conventional diesel fleet by up to 90%.

Continue the freeze on Vehicle Excise Duty for HGVs and the HGV Levy to reduce cost pressures on the industry which is facing record insolvencies.

Extend full expensing to leased assets to drive investment. This will help small firms for whom rising interest rates have been an unavoidable burden on their bottom lines.

Make the HGV skills bootcamps a permanently option to avoid a future HGV driver shortage, meet the projected 180,000 new drivers required over the next 5 years, ensuring the resilience of supply chains.

Ensure the National Wealth Fund creates opportunities for investment in invest in zero emission vehicles and infrastructure.

Safeguard the £8bn allocation of Network North road maintenance funding over the next three years to reduce congestion, increase efficiency of journeys and drive growth.

Ensure that the forthcoming Road Investment Strategy (RIS3) contains a new raft of schemes, and avoids being primarily composed of schemes which are still undelivered from RIS2. We also want to see roadside facilities included.

[1] CEBR analysis (2024)