The UK supply chain has been greatly affected by the combined paradigms of Brexit and Covid-19, with a range of government measures being introduced to combat HGV driver shortages and other related issues. In a new development, an additional move has been made by Conservative Chancellor Rishi Sunak to support the logistics sector.
As was announced by the government in their Spring Statement on the 23rd of March 2022, fuel duty has been cut by 5p per litre for a period of 12 months across the United Kingdom. According to Elizabeth De Jong, Logistics UK’s Director of Policy, it will allow logistics companies to continue to keep supplying the country with goods.
Facing Down Increasing Fuel Prices
The temporary cut in duty will help logistics companies to overcome pressures caused by recent increased fuel pump costs and other inflationary pressures. Speaking on the subject, De Jong had this to say…
“With average fuel prices reaching the highest level on record and rising inflation, there has been an unsustainable burden on logistics businesses which operate on very narrow margins of around 1%. The Chancellor’s decision today will help to ensure operators can continue to afford supplying the nation with all the goods it needs.
Fuel is the single biggest expense incurred by logistics operators, accounting for a third of the annual operating cost of an HGV. The cut in fuel duty of 5ppl will result in an average saving of £2,356 per year per 44-tonne truck. This move will help to strengthen the UK’s supply chain during a time of ongoing financial and operational challenges.”
A Response to An Earlier Request?
The decision to make this cut is sure to be welcomed by everyone in the logistics sector and it would seem that Logistics UK may have played a big part in making it happen. Just a couple of weeks earlier, the organisation wrote to Rishi Sunak MP, urging him to consider a fuel duty cut.
As one of the UK’s leading business groups that represents logistics businesses, the work they do is important to the more than 7 million people currently employed in the manufacturing, selling and transportation of goods. They stand up for the safety, rights and wellbeing of personnel, whether in road, rail, sea or air logistics.
Fully Behind Moves to Support UK Logistics
This latest government decision will almost certainly benefit the UK’s haulage sector, with HGV lorry drivers alone saving thousands of pounds over the 12 month period. We’re fully behind the move and all others designed to make living and working in logistics safer and more comfortable.
At HGVC, we’ll continue to support the UK’s haulage sector by providing industry-leading, scalable HGV licence acquisition programmes. Thanks to our nationwide network of training centres and highly experienced instructors, we’re well placed to assist you, irrespective of the size of your organisation.
To find out more about us and what makes us different, you should take a look around our website, where you’ll find everything you need to know and more. Alternatively, to get in touch with us, simply click ‘contact us’ or call us on 0330 818 8888 and we’ll be delighted to discuss your training needs.
