Here are the most important decisions for the transport and logistics sector:
1. A freeze in vehicle excise duty rates for heavy goods vehicles until 2024-25.
The Government will introduce legislation in the Autumn Finance Bill 2023 to increase vehicle excise duty (VED) rates for cars, vans and motorcycles in line with the Retail Price Index (RPI) from 1 April 2024.
However, „to continue to support the haulage sector”, VED rates for heavy goods vehicles will be maintained at 2023-2024 levels with effect from 1 April 2024, the document adds.
Also, from 1 April 2024, HGV rates will be frozen at 2023 to 2024 levels for 2024 to 2025.
2. Van benefit charge and car and van fuel benefit charges for 2024 to 2025
The Government has announced that the Van Benefit Charge and the Car and Van Fuel Benefit Charges for 2024 to 2025 will remain at their 2023 to 2024 levels.
The flat rate van benefit charge will remain at £3,960. The car fuel benefit multiplier will remain at £27,800. The fuel allowance for vans will remain at £757.
3. The introduction of full expensing
The government will introduce legislation in the Autumn Finance Bill 2023 to make temporary full expensing permanent.
Introduced in this year’s Spring Budget, temporary full expensing allows businesses that incur qualifying expenditure on the provision of new plant and machinery on or after 1 April 2023 and before 1 April 2026 to claim the following:
- a 100% first year allowance for main rate expenditure – known as full expensing
- a 50% first year allowance for special rate expenditure
The deadline of 1 April 2026 will be removed in the Autumn Finance Bill 2023 to make full expensing permanent.
Expenditure on leasehold plant and machinery will continue to be excluded from full expensing, the statement added.
„The government will publish a technical consultation on the draft legislation in due course to consider a potential extension to plant and machinery for leasing, which is subject to a future decision,” it says.
4. The introduction of a premium planning service with guaranteed accelerated decision dates for major infrastructure applications.
„The Department for Levelling Up, Housing and Communities [DLUHC] will bring forward plans for authorities to offer guaranteed accelerated decision dates for major developments in England for a fee, ensuring refunds are given if deadlines are not met and limiting the use of extension agreements,” the Autumn Statement said.
This premium service should help to remove planning as a barrier to investment in major infrastructure projects.
5. Emissions Trading Scheme (ETS) net zero cap
„As set out by the UK ETS Authority in July 2023, it will reduce the number of ETS permits available for purchase by the government by 45% between 2023 and 2027. It will also extend the scheme to cover emissions from domestic shipping and energy from waste in 2026 and 2028 respectively,” the statement added.”
This change has been made by amending the Greenhouse Gas Emissions Trading Scheme Auctioning Regulations 2021 through an enabling power in the Finance Act 2020.
What did the 2023 Autumn Statement forget?
After weeks of outrage and confusion over the cancellation of the northern leg of the HS2 high speed rail project, the Autumn Statement is conspicuous by its lack of specific transport detail.
Many organisations, including the Institution of Civil Engineers (ICE), have called on the government to commit to a review of rail plans for the North and Midlands, arguing for engagement with local leaders and alignment with existing plans.
Despite this call, no further details have been confirmed by the Chancellor.
There are calls for the government to clarify the objectives behind the Network North plan and explain the rationale for selecting specific transport projects.
The Autumn Statement also lacks a clear and comprehensive roadmap for the decarbonisation of commercial vehicles, despite a £2 billion fund announced in mid-November to support the manufacture and development of zero-emission vehicles.
Finally, there is no mention of Clean Air Zones, despite repeated calls from the industry for a review of their effectiveness and impact on business.
RHA warmly welcomes the Statement
The Road Haulage Association (RHA) has been one of the first industry bodies to digest the announcement. The organisation has warmly welcomed the positive aspects of the Autumn Statement for the road haulage industry.
In particular, the decision to freeze Vehicle Excise Duty (VED) for HGVs and the HGV Levy until 2024-25 is seen as a positive outcome of the RHA’s campaigning efforts. The move is expected to ease cost pressures on hauliers, who have seen operating costs rise by almost 10% in the past year, given the industry’s slim average profit margins of 2%.
The RHA acknowledges the economic challenges, with road freight volumes down by 10% and an increase in insolvencies due to cost of living pressures.
It therefore welcomes the announcement of full expensing, which makes permanent the changes made in the Spring Budget, allowing companies to claim back tax on new plant and machinery purchases, including vehicles and storage equipment.
The organisation also welcomes the Chancellor’s recognition of the planning barriers to major infrastructure investment. The introduction of a premium planning service with faster decision times for major applications, together with new powers to hold councils to account, is seen as positive.
Ensuring a robust network of secure roadside HGV parking facilities remains a key priority. As for the missing pieces, the RHA stresses the need for concrete plans on how the £2 billion zero emission vehicle funding will be targeted at commercial vehicles.
And the HS2 cancellation?
Transport Secretary Mark Harper announced last week that the government had „set out the allocations of an £8.3 billion long-term plan, enough to resurface over 5,000 miles of road across the country over the next 11 years”. This money comes from the diverted HS2 funding. The RHA was quick to welcome these plans:
„It is vital that local authorities are properly resourced to tackle the maintenance backlog. The RHA therefore welcomes the fact that this pledge is for funding over the next 10 years, ensuring that local councils will be able to tackle the scourge of potholes in their area”.
Photo credits @ Robin Stott and licensed for reuse under this Creative Commons Licence.