The effect of the budget on the transport industry

UK-Transport-Industry

The effect of the budget on the transport industry

Richard Smith, MD, RHA has responded to the Autumn budget.

“As critical economic enablers, we as an industry must be on the front foot to future-proof the supply chains. We therefore want the policymakers to work alongside us to minimise the financial burden and the regulations placed on businesses.”

He writes:

“Firms throughout the road transport sector were also delighted with the decision to continue with the freeze on fuel duty. We at the RHA have long been clear that raising fuel duty would have been catastrophic for operators. It would have been bad for the economy too. So, we’re pleased the Chancellor listened to our concerns on this.

The Chancellor’s commitment to increase the Employment Allowance for small businesses from £5,000 to £10,500 is also welcome but we do note this will only apply to the smallest companies, so many firms in our industry will not be eligible.

The increase to employer National Insurance contributions has left many business owners with much to think about – as they come to terms with the realities of the additional costs they’ll have to factor in.

With operating costs increasing and margins tightening, raising employer National Insurance contributions (NIC) to 15%, and the lowering of the threshold, will be a challenge for companies in an industry where 95% are small and medium sized and who could well do without this additional expense.

These changes will make things more difficult for many businesses of all shapes and sizes, be that operators of HGVs, LCVs or coaches.

This increase in employers’ costs in particular may force some businesses to re-think their recruiting strategies entirely. The National Insurance changes, on top of other cost implications from the planned employment law reforms, are increasing cost pressures on firms at a time when our sector is already dealing with rising expenses. This will ultimately impact the ability for some to hire new staff and expand.

Ultimately, the true test of this budget will be whether firms can invest, grow and boost the economy over the next 12 months. We stand ready to help to achieve this.

National Lorry week and fuel duty

UK-Lorry-fuel-duty

National Lorry week and fuel duty

The RHA (Road Haulage Association) started its four-nation National Lorry week on October 21 in Stoke on Trent before moving on to Crumlin in Northern Ireland.

Then it was on to Scotland and Wales with the tour to end in Northampton on November 4.

The event is an annual celebration of our industry and its people; it’s our campaign to showcase the vital role the trucks, drivers and our industry as a whole plays in our lives.

Ahead of the budget the RHA is highlighting the huge role the haulage industry plays in UK economic growth and is continuing its campaign for a high quality infrastructure.

It is also arguing that raising fuel duty will damage the UK economy and cause more hardship.

It says that being collaborative is a key hallmark of operating successfully and something talked about a lot at the Road Haulage Association.

The RHA is also continuing its campaign to encourage Government investment in skills training within the haulage industry pointing to a 41% decline in overall apprenticeships.

Improving Road Transport

Improving-Road-Transport

Improving Road Transport

The RHA is calling on the government to do more to ensure that roads are fit for purpose to deliver economic growth.

It says Congestion costs the UK economy £30bn a year and is ready to work with local authorities and the Government.

It has published a blueprint for improvement with four main themes:

Mission 1: Kickstart economic growth.

Mission 2: Make Britain a clean energy superpower

Mission 3: Take back our streets

Mission 4: Break down barriers to opportunity

The RHA has also welcomed new rules to tackle lte payment.

“According to figures from the Department for Business & Trade (DBT) and research from the Federation of Small Businesses, delayed payment of invoices currently cost smaller firms £22,000 a year on average. 

“New rules are being introduced today by Government that will require companies to include payment reporting in their annual reports. This is intended to increase the transparency of the payment process, in particular payments to smaller firms.

The government is also consulting on new laws that will hold firms to account for late payments and ensure cash flows into businesses.
The consultation will consider policies aimed at addressing poor payment practices.”

The state of our roads and an up coming deadline

State-of-the-roads

The state of our roads and an up coming deadline

The RHA (Road Haulage Association) says:

“To keep the economy moving and competitive, our industry needs robust infrastructure which is fit for purpose. We need a network of roads in place which are safe and reliable – with capacity to accommodate future growth in demand.

Congestion costs the UK economy approximately £30.8 billion which works out at an average cost per driver of £968 a year and for our sector, this can have real consequences where congestion is estimated to account for 16% of all outlays in road freight. “

It has issued a Blueprint document, making  it clear that it’s crucial that the Government invests in our road network soon and speeds up delivery of road projects at all levels; from pothole repairs to bypasses to major infrastructure.

“A more reliable road network in place will improve journeys, reduce costs for operators, tackle congestion and unlock economic growth through better connectivity between UK towns and cities.”

The RHA is also reminding drivers that those who gained their Driver Certificate of Professional Competence (CPC) before 2019, the deadline to renew in September is fast approaching.

Drivers must complete 35 hours of CPC every five years and the deadline to complete the CPC training for many is Monday 9 September.

Missing the deadline will mean they cannot drive professionally and face fines of up to £1000 if they do so.

New safety standard for hauliers driving in London launches in October

New-Safety-Standards

New safety standard for hauliers driving in London launches in October

The new Direct Vision Standard safety criteria are designed to meet Transport for London’s (TfL) Progressive Safe System (PSS).

The RHA has an explanatory document which sets out what a Blind Spot Information System and Moving Off Information System should do.

It can be found here https://bit.ly/DVSExp

Hauliers should have the PSS kit installed in their vehicles by October 28 after the RHA successfully negotiated for a three-month extension with TfL.

Full details of the scheme and its requirements are also on the TfL website here https://tfl.gov.uk/info-for/deliveries-in-london/delivering-safely/direct-vision-in-heavy-goods-vehicles#on-this-page-5

The importance of Road Haulage to the UK economy

Road-Haulage-UK-Economy

The importance of Road Haulage to the UK economy

As the campaigning for the General Election continues James Barwise, RHA policy lead, appearing on BBC Politics South East, said new road projects are essential to make journeys more efficient.

Declan Pang, RHA Director of Policy and Public Affairs has also highlighted the needs of the Road Haulage industry:

He said: “At a time of rising cost pressures and regulations for businesses, there remains many unanswered questions on how the various parties will approach a number of key challenges. 

“Whoever forms the next Government will need to work collaboratively with industry to help minimise the financial burden on operators to support economic growth.

“The total cost of operating an HGV has increased by 10% over the past year and because of these rising costs, some hauliers have gone out of business and some other operators are running at a loss with their margins wiped out by cost increases. 

“With the average profit margin of a haulier at just 2% (which equates to around £70 per week or £3500 per year profit per lorry), the next Government needs to minimise taxation for operators, particularly given that the cost of distribution impacts the prices on our shelves and the cost of living.

“As businesses try to navigate rising costs and different regulations, we want the next Government to consider a review of road freight regulations which can be simplified and reduced. “

The RHA is also calling for the suspension of the HGV levy and a ringfencing of future funds for green fuelling infrastructure.

The RHA has been active on all our behalves

Active-RHA

The RHA has been active on all our behalves

The All Party Parliamentary Group on Road Freight & Logistics exists to highlight issues and challenges facing hauliers and coach operators. 

Over the past year The group has held evidence sessions on tackling freight crime, strategies to increase take up of low carbon fuels, discussed skills shortages, and strategised ways to minimise the financial burden on operators to support economic growth.

Most recently the RHA (Road Haulage Association) partnered with the All Party Parliamentary Group on Road Freight & Logistics in Parliament to hold an Annual General Meeting.

The RHA previously welcomed the Government’s pledge that some funds from the scrapped HS2 Birmingham to Manchester line will be re-directed to improving roads via ‘Network North.’

After reading the NIC findings, it is therefore seeking clarity from the government that the projects outlined in the Network North proposals will still go ahead as planned and we’re seeking assurances that they will go far enough to ensure the road network is fit for purpose.

The organisation continues to campaign for better driver facilities.

It argues “Commercial vehicle drivers are the backbone of our economy. It is crucial that drivers have access to proper roadside facilities if they are to effectively carry out their critical role of keeping our supply chains moving.”

It estimates that nationally there is an 11,000 lorry parking space shortage, resulting in many drivers having to take their rest periods in their vehicles at the side of the road with no access to hygiene facilities.

It wants to see lorry parking is embedded in all major National Highways building works, particularly Nationally Significant Infrastructure Projects and those that form part of the Road Investment Strategy and development of National Freight Network with truck parking facilities at its core.

Freight Crime

Freight-Crime

Freight Crime

The RHA has launched a drive ahead of the local elections to get freight crime taken more seriously.

It says freight crimes cost the haulage industry and the UK economy around £250m a year.

It wants to see more consistency with how police forces manage abnormal load enforcement.

The campaign calls for:

Full engagement with the National Vehicle Crime Intelligence Service (NavCIS) including reporting instances of freight crime directly to the unit and requesting assistance where significant instances are reported;

Including freight crime in policies relating to organised crime and liaise with other forces including through the Association of Police and Crime Commissioners;

More safe and secure truck parking;

Supporting truckstops with investment in security measures;

Creating a local awareness campaign;

Also don’t miss the Truckfest in Lincoln next month (May 4-6).  There’s a discount for RHA members.

Late payments and calls for a dedicated logistics minister

Late-Payments-and-Calls

Late payments and calls for a dedicated logistics minister

Like many industries the haulage industry is no stranger to late payments.

So we welcome new rules coming in in April which will mean that companies with public sector contracts have to abide by 30-day payment terms within their supply chains for that specific work.

The RHA has welcomed this as a step in the right direction but called for action to go further.

The organisation, which represents hauliers like ourselves is also pressing for the creation of a dedicated minister for logistics with cross-departmental responsibilities.

A letter calling for this has been signed by the heads of not only the RHA but also the British Ports Association, the UK Warehousing Association, British International Freight Association, the British Association of Removers and Logistics UK among others.

They call for the Government to “recognise the value the sector provides to the economy.” according to the associations, it “generates £163 billion in Gross Value Added (GVA) and contributes significant tax revenue for the UK, including £5 billion from Fuel Duty and Vehicle Excise Duty alone.”

We agree.  It is about time the importance of the logistics sector of which we are a part was recognised and properly valued.

RHA Campaigning

RHA-Campaigning

RHA Campaigning

The RHA continues to campaign to improve conditions for the haulage industry and  among other things is focusing on costs ahead of the upcoming budget.

Ongoing campaigns include making it easier for businesses to do business through lower costs and simpler regulation and removing obstacles to doing business internationally.

In June the RHA has announced it will be taking part in The Big Logistics Diversity Challenge on Thursday 20 June.

The event will take place at the Newark Showground in Nottinghamshire – and will promote the importance of equality, diversity, and inclusion (ED&I) across the logistics and warehousing sectors.

The Big Logistics Diversity Challenge promotes how inclusivity can be tackled collaboratively and collectively. This year will see new fun physical, mental, and skill-based activities put to teams.

New challenges include:

– The Big Diversity Sports Day which will feature sack racing, skipping and beanbag balancing

– Golden Bungee Balls will put teams in a head-to-head endurance test where they need to retrieve as many golden balls as possible while bouncing across a giant inflatable

– Toxic Jigsaw will see the teams navigate a giant 150-foot-long inflatable in pairs and complete a jigsaw

– ID Parade tests teams’ recognition and memory skills to identify celebrities

– Mortar Attack sees teams navigate their way through hazards and launch a rocket – streaming a smoke trail up to 1000 feet into the air – before making their way back to their crashed shuttle

– Semaphore Whisper is a game of Chinese whispers using a flag semaphore with teams split into three groups, one responsible for delivering the message, another deciphering it and the final confirming the final communication

– A Silent Disco dance-off

The challenge is also a platform for attendees to share best practices and network to help shape a more inclusive sector.