Logistics UK welcomes continued fuel duty cut 

Logistics UK has welcomed the 5ppl fuel duty cut extension for 12 months as announced in the Spring budget. 

Logistics UK's chief executive David Wells OBE has raised concerns about the upcoming Bill set to take effect in December 2023 in a letter addressed to PM Rishi Sunak.

Logistics UK’s chief executive, David Wells, said: “Logistics is the UK’s system for growth. Today’s budget announcement was an opportunity for the Chancellor to ensure continued – and potentially increased – investment in green growth and fulfilling careers while keeping prices down in the shops. 

“Today’s announcement that the 5ppl cut in fuel duty is to be retained for a further 12 months is very welcome news for logistics businesses, particularly SMEs – who make up 99% of the industry, and traditionally operate on low margins. Logistics UK has consistently urged the government to extend this cut while maintaining revenue levels through VAT and other sources.  

Avoiding further inflationary pressures on businesses 

“Logistics is at the heart of every sector of the economy; this decision recognises the importance of managing logistics costs to avoid further inflationary pressures on business and consumers. This should help to ensure businesses have the funds to invest in productivity, growth and greener technologies, alongside the new policy for full capital expenditure announced as the successor to the super-deduction (providing it encourages the transition to a zero-carbon economy). 

“However, Logistics UK is dismayed by the lack of support to help businesses with energy costs and our sector’s transition to a low carbon economy, something which the government has urged the industry to commit to. This is a missed opportunity. Our members will also be concerned about proposals for a reformed HGV road user levy, and together we will be seeking urgent clarification as to the detail involved. 

“While we are also disappointed there was no reference to much-needed Apprenticeship Levy reform, it is encouraging that government is focused on supporting people into work, which will help to relieve the existing skills gaps in the industry and the wider UK economy. Logistics UK will work with its members to scrutinise the detail and identify what these measures will entail, such as the announcement of skills boot camps and returnships, and whether these will provide a credible pathway into logistics.”