On Wednesday 27th October, Chancellor Rishi Sunak provided a welcome boost to the UK’s haulage sector as he announced budget changes to help the industry during this difficult time. Along with a suspension of the HGV levy until 2023, the government also froze vehicle excise duty (VED) for HGVs.

Having previously extended the HGV levy until August of 2022, this has now been extended for an extra year, coming along with a commitment for major investment in HGV driver facilities in the UK. This will come as welcome news to the many who have complained of poor facilities over previous months.

Not stopping there, the government has also pledged a further £21 billion in funding, which has been earmarked to improve Britain’s roads. £5 billion of this figure will be invested in local roads – sufficient to deal with more than 1 million of the potholes that have become more common than they should.

“The UK’s Roads & HGV Facilities Need Improving”

During his budget speech, Mr Sunak echoed what many have expressed over the past year by highlighting the need to improve Britain’s road network and available facilities for HGV drivers. He also had this to say “We’ve already suspended the HGV levy until August and I can do more today extending it for a further year until 2023, and freezing Vehicle Excise Duty for heavy goods vehicles.

It would be irresponsible to think that the supply chain issues we currently face will be resolved overnight, but by placing an emphasis on transport, significant strides can be made”. This comes after several recent measures like temporary visas and the scrapping of separate Cat C and Cat+E HGV tests were introduced to increase testing capacity.

Budget Announcements Met With a Mixed Response

The Road Haulage Association’s (RHA) Managing Director Rod McKenzie was full of praise for the VED and Levy changes, saying “These are very welcome measures for the UK’s hard-pressed haulage industry already battling chronic driver shortages and other substantial challenges to maintaining the efficiency of the nation’s supply chain”.

And of the proposed improvement of HGV driver rest area facilities he added “This is a major victory for our demands that truckers need better facilities. Somewhere safe to park with good toilets and washing facilities is vital. The government needs to continue to work with the industry to improve conditions as this will also act as an encouragement to potential truck drivers, particularly women”

David Wells of Logistics UK Agrees…

Echoing Mr McKenzie’s sentiments, David Wells of Logistics UK had this to say “As the government’s own figures estimate, there is currently a shortfall of more than 1,400 truckstop facility spaces nationally so there is still more to be done. The business group will remain in close contact with the government on this issue, to ensure that the spaces needed are finally delivered”

Continuing with… “After more than three years of promises which are yet to be fulfilled, this is vital to acknowledge the contribution which HGV drivers make to the UK’s economy and help industry attract new recruits to the sector.”

Although BVRLA Chief Executive Gerry Keaney Does Not…

The reception was not all positive, however, as British Vehicle Rental and Leasing Association (BVRLA) Chief Exec was not quite so effusive about the news. “The Chancellor has missed an opportunity to give the industry essential clarity when it is most needed. At a time when the uptake of electric vehicles is ready to accelerate, the silence around areas such as benefit in kind tax rates is deafening.

The Chancellor has failed to provide tangible details on these ‘asks’, meaning that questions remain over what the government’s plan is. The Net Zero Strategy last week marks a very positive step in the right direction and what we needed in today’s budget was more detail. Instead, we have been given headlines that offer no clarity, no foresight and no confidence.”

A Crucial Period to Come Over the Next 6-12 Months

While not everyone is 100% on board with the announced plans, it’s clear to see that the government places high importance on supporting the UK’s haulage industry. Much has been put into action over recent months and this latest budget announcement is welcome news to many who have been calling for significant changes for some time now.

At HGVC, we’re heartened to see an improvement in conditions for HGV drivers and the changes in taxation will also have a supportive effect where it matters. We will, of course, continue playing our part by delivering industry-leading HGV licence acquisition programs to organisations across the country, further supplementing the available talent pool.

If you would like to know about us and our cutting-edge, hassle-free driver training process that’s scalable to any size of need, take a look around our website today. Or to talk to us about how we can help your organisation’s needs, simply drop us a line via our Contact Us form or 0330 818 8888.