The Road Haulage Association (RHA) has presented its key recommendations to the UK Government in anticipation of the 2024 Autumn Budget, set to be delivered on 30 October. The RHA’s submission addresses the challenges currently facing the road transport sector, with an emphasis on the vital role this industry plays in supporting economic growth and the wider UK economy.
Richard Smith, Chief Executive of the RHA, pointed to the continuing pressures on the sector, including rising operating costs, increasing regulatory demands and a significant number of business failures. He stressed the importance of government support to alleviate these pressures and ensure the continued resilience of the industry.
“Our sector is a key economic enabler and is central to the Government’s mission to deliver economic growth,” Smith stated. “We need the Government to minimise the burden on businesses to ensure the road transport sector is there to deliver for the rest of the economy.”
The RHA’s budget submission is built on its recently published “Blueprint,” which outlines strategies to promote growth within the sector. Among the core recommendations are calls for investments in road infrastructure, efforts to combat freight crime, and a roadmap for decarbonisation, alongside addressing the industry’s ongoing skills shortage.
Key recommendations
Among the RHA’s key requests is the continued freeze on fuel duty, noting that any increase could hurt the economy. According to the RHA, a 5p rise in fuel duty could reduce GDP by £430 million annually, lead to the loss of over 5,000 jobs, and raise the Consumer Price Index (CPI) by 0.2%.
The association is also advocating for the introduction of an essential user rebate to reduce costs for commercial vehicle operators, which would help ease supply chain pressures and lower inflation.
On the road to net zero, the RHA stressed the need for a clear decarbonisation roadmap. The estimated cost of decarbonising the HGV fleet is £100 billion. The RHA also emphasised that government support will be essential to ensure that haulage and coach operators can meet decarbonisation targets.
The submission also addresses the ongoing skills shortage in the road transport industry. With an ageing workforce and a projected need for 180,000 new HGV drivers over the next five years, the RHA called for long-term solutions, including making HGV skills bootcamps a permanent initiative.
The association also urged the government to ensure that the National Wealth Fund supports investment in zero-emission vehicles and infrastructure.
Road investment is another focal point of the RHA’s recommendations. Smith pointed to the importance of infrastructure spending to improve connectivity, reduce congestion, and enhance supply chain efficiency. He noted that government action on road improvements is critical for maintaining the smooth flow of goods, which is important for local and national economic growth.
The RHA urged the government to safeguard the £8 billion allocated for Network North road maintenance over the next three years and ensure that the forthcoming Road Investment Strategy 3 (RIS3) includes new projects, rather than relying on unfinished schemes from previous road strategies.