RHA.UK.NET — 2023-03-15
Land transportation
Responding to the Spring Budget, RHA Director of Public Affairs & Policy, Declan Pang, said:
"We are pleased the Chancellor has listened to the RHA and continued the fuel duty freeze and maintained the 5p per litre cut brought in 12 months ago. This is something we’ve campaigned for to help reduce costs and control inflation.
The continued freeze on Vehicle Excise Duty (VED) for HGVs for 2023-24 is welcome news and another much needed win for RHA members following our engagement with government.
However, today’s Budget could have gone much further to support hauliers, coach operators and the logistics industry.
We are disappointed to see the increase in corporation tax from 2023 April 1 as well as the return of the HGV levy from August this year. This is a tax targeted at the road freight industry that economic growth in the UK relies upon.
We are also concerned that the focus of the HGV levy has been shifted towards CO2 emissions. The original intention of the levy was to ensure overseas operators contributed to the upkeep of the UK road infrastructure. If this is no longer the main purpose of the levy, we question its utility at all, given the progress the industry has already made in reducing emissions. The lowering amounts of levy funds recouped as fleets modernise will also need to be addressed.”
The first-year capital allowance for investment in plant and machinery is welcome and we support the measures on encouraging the over 50s back to work through additional skills bootcamps and returnerships. As the average age of an HGV driver is 52, we already know the benefits they bring to the workforce. We would have liked to have seen more Government efforts into recruiting younger people behind the wheels of trucks and coaches.
Almost everything we use and consume comes on the back of a lorry. This country’s growth depends on an effective logistics network.
We will continue to work with the Government on measures which will benefit our industry and the wider economy at this difficult time."