The RHA has called for urgent government intervention to sustain the UK haulage industry.
- A freeze on fuel duty is deemed essential to prevent rising operational costs for hauliers.
- Suspending the HGV levy is proposed to alleviate the financial strain on the industry.
- The collapse of several haulage firms highlights the severe economic pressures faced by the sector.
- Comprehensive regulatory review is necessary to streamline operations and support growth.
The Road Haulage Association (RHA) has urged the next government to take decisive action by freezing fuel duty and suspending the HGV levy. This appeal is aimed at safeguarding the industry from financial hardships that could lead to further business failures. With the recent administration of firms like Cartwright Bros, the call underscores the urgency of immediate intervention.
The last year saw the collapse of nearly 500 haulage companies, and 2024 is following a similar trajectory with 170 firms already out of business. This trend, including the demise of Linkline Transport and Rapid Response Transport, highlights the escalating costs and regulatory pressures that hauliers face. Richard Smith, RHA Managing Director, remarked on the challenging environment created by rising costs and increased regulations impacting the sector.
Smith elaborated on the economic burden caused by higher interest rates and operational costs, which contribute to the increasing cost of goods. He reiterated the necessity of government commitment to freezing fuel duty as highlighted in the RHA’s manifesto. Such measures are crucial to alleviating the tax burden on the industry, thereby fostering economic growth and providing much-needed support to commercial vehicle operators.
Further to the financial requests, the RHA is advocating for the suspension of the HGV levy, viewed as a pivotal step in demonstrating governmental support for the commercial vehicle sector. This action, alongside a comprehensive review of road freight regulations, could significantly streamline operations and reduce contradictory laws affecting haulage firms across various regions.
The challenges faced by Cartwright Bros, including surging diesel prices, Brexit-induced driver shortages, and bureaucratic hurdles, are emblematic of the broader issues afflicting the industry. The RHA’s appeal to the government is not only for immediate fiscal relief but also for long-term strategic planning to mitigate such multifaceted challenges.
The industry’s future hinges on decisive government action to address these pressing issues.
