Autumn Statement: Hauliers unlikely to benefit, TEG predicts
The chances of the haulage industry featuring prominently in the Autumn Statement are narrow and with the Chancellor under pressure to raise fuel duty - last increased in 2011 - the odds of the haulage sector emerging unscathed are slim, according to an analysis by the Transport Exchange Group (TEG).
The TEG points to previous year's budgets as indicators, with 2022 seeing budget cuts to transport, as the UK struggled to stabilise as it emerged from the COVID pandemic. Meanwhile in 2021 the majority of investment was dedicated to urban public transport.
The analysis highlights RHA's call for a fiscal incentive of an emissions-linked rebate to promote a switch to greener fuels, as well as a clear and comprehensive roadmap for commercial vehicle decarbonisation, which would support investments in infrastructure and technology.
It also notes industry calls to review Clean Air Zones (CAZs) and their effectiveness versus the impact on businesses, and to halt increases to fuel duty on diesel for two years, to bring some much-needed stability to fuel prices.
Lyall Cresswell, CEO of Transport Exchange Group, said lack of government support wil hamper the industry's ability to make the transition to net zero. He said: "It’s a troubling time in the industry, and with a seeming lack of compromise from the government, a net-zero future where everyone is accounted for is looking increasingly unlikely.
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“As industry leaders, we can only work with what’s in front of us. We make it our priority to future-proof our processes and make green changes where possible, but without government cooperation, the extent of our impacts will be limited.
“This Autumn budget will be crucial for us, and with the right investment and direction from the government, we are confident we will be able to move forward towards a green and sustainable future with assurance.”
Kirsten Tisdale, director of logistics consultants Aricia, and Fellow of the Chartered Institute of Logistics & Transport, added: "The Office for National Statistics released the Q3 figures for ‘freight transport services by road’ as part of the wider Services Producer Price Index and confirmed what those in the industry already knew, that road freight has been experiencing year-on-year deflation.
“The TEG index for October, more specific and more up-to-date, tells us that spot rates for haulage have now been deflationary for nearly a year and a half.
“Looking to the shipping industry to get some idea of where things might be going is not particularly cheering, with container rates currently very low. In this instance, it is due, at least in large part, to considerable over-capacity in that market.”
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