Road transport businesses who keep our supply chains moving are facing near-record high inflation, energy costs and fuel prices in the midst of an economic crisis.
Today’s Autumn Statement could have gone much further to reduce the costs of doing business and the upward trend in prices.
Costs for road transport businesses have increased by over 11% in recent months with fuel alone up by nearly 40%.
These increased costs have a direct impact on the prices on our shelves, as businesses have little choice but to pass them on to the consumer.
Richard Smith, RHA Managing Director, said: “We were disappointed that no further action has been taken to reduce fuel duty which would ease the cost of living for everyone. We hope that our proposed Essential User Rebate, an anti-inflationary measure which will help ease fiscal pressures in the supply chain and reduce the rising cost of living for everyone, will be considered for the Spring Budget 2023.”
Freezing the threshold for employer National Insurance will also increase costs of employment when costs for businesses are rising across the board.
We welcome the energy support package for businesses until April, and the steps taken to assist businesses affected by the Business Rates revaluation, particularly the relief from rate increases as a result of property development. We will be working closely with the Government’s review of the Energy Bill Relief Scheme to ensure our industry’s critical role is properly considered and additional support maintained.
We were also pleased to see the Chancellor’s commitment to infrastructure as a priority for growth, but we need a renewed focus on roads investment at all levels of government across the UK if we are going to keep British businesses and supply chains moving.