TRANSPORT AND LOGISTICS
FUEL DUTY RISE SPELLS DANGER FOR INDUSTRY
Removing the five pence per litre cut in fuel duty could drive inflationary cost pressures, raising prices for businesses and consumers, says Logistics UK.
B
usiness group Logistics UK, the trade association that covers the UK’s transport and logistics sector, has outlined to the Treasury its concerns that increasing costs for industry would apply the handbrake to economic growth while driving up the price of everyday goods. It also said that higher costs for the sector could inhibit its ability to continue investing in its decarbonisation.
The extension to the five pence per litre cut in fuel duty is set to end in March 2025 and Logistics UK’s submission calls for the cut to be maintained for a further year. According to Logistics UK analysis, a 1p increase in fuel duty would cost haulage businesses across the UK over £185 million per year.
Logistics UK Chief Executive David Wells OBE says: “The logistics sector underpins all other sectors and has a critical role to play in driving growth and the new government’s industrial strategy, so now is not the time to
increase costs for logistics businesses. With hauliers operating on low margins, typically around 2.5%, often the only sustainable way to manage cost increases is to pass them on through the supply chain with consumers, ultimately, picking up the tab in higher prices. This is something our members are loath to do but will have no choice when they are also managing rising wage costs and new vehicle prices, while investing in new equipment to take us into a net zero future. “We recognise the constrained fiscal situation facing the Chancellor and are confident that the best way that our sector can help the government manage it is by driving growth, growth that would be stifled by tax increases.”
According to Logistics UK, fuel represents a third of the costs for logistics businesses and the weekly fuel bill for a 44-tonne diesel HGV is estimated to be approximately £888 with £436 taken in fuel duty by HMRC. The trade
MOST FORKLIFT ACCIDENTS ARE AVOIDABLE
Mentor Training is aiming to identify the real risks facing companies’ mechanical handling operations.
D 32
espite stringent Health & Safety legislation, the UK witnesses around 1300 serious injuries each year resulting from accidents involving lift trucks. Most of these are entirely avoidable. To gain insight into any current trends, Mentor launched their survey earlier this year, in the hopes of highlighting common risks affecting those working with and around forklifts. The survey covered key topics surrounding the use of MHE, and the training required to do so, and now, its results have been released as a free downloadable document. Adam Smith, Mentor’s Commercial Director, explains further, “It is vital that we understand
the hazards present in our places of work so that we can take the necessary steps to keep our teams safe and businesses compliant. Hence why we carried out our Forklift Safety Insights Survey, which drew on feedback from those at the heart of UK operations, and produced the accompanying report.” “Not only does the document provide insightful headline statistics, it is filled with data that can help businesses to identify the dangers, and actively address them, within their operations. There are certainly interesting results and key learning points that businesses using forklift trucks can take away, apply to their operations and see genuine benefits.
“For example, we were surprised to find that, unless prompted by a concern raised, almost a quarter of those we surveyed did not monitor operator ability in between refreshers, which could be every three to five years. Regular monitoring and supervision play a huge part in ensuring safety is upheld day to day. Implementing simple solutions like these can significantly reduce risk – we hope our report highlights this and helps businesses to boost safety and compliance within their organisations.” BMJ
www.buildersmerchantsjournal.net October 2024
body’s submission highlights that logistics businesses paid £5.84 billion in fuel duty in 2021, contributing more than 20% of all fuel duty paid to HMRC.
Wells adds: “In the medium term, we are calling for a move to a dynamic mechanism for fuel duty that, in periods of inflation, enables the Treasury to keep fuel duty down by taking into account its tax receipts from VAT on fuel. We also want the government to better align road and rail charges, to enable rail freight to be cost competitive.”
Long term work
The call to maintain the current fuel duty cut is one of several measures outlined by Logistics UK in its submission to the Treasury. The five priority areas include creating a closer partnership between the government and logistics sector; developing innovative and integrated infrastructure; ensuring a fair transition to becoming a clean energy superpower that rebuilds the UK’s industrial strength; creating a skills partnership to support a thriving sector; and backing trade as a driver of innovation and productivity. “For the long-term, we are keen to work with the government to help develop plans for the future of transport pricing. We need to ensure that it works for the logistics sector and the wider economy,” he continues. “Any new pricing system must recognise that logistics works as an integrated system across transport modes and operators must be able to make rational decisions to move goods in the most productive, strategic and green way.” BMJ
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80
