The Road Haulage Association (RHA) has submitted its response to HM Treasury’s Spending Review, calling for significant investment in road infrastructure, driver facilities, and workforce skills to support the UK’s economic growth. The review, the first since 2021, will determine government spending priorities for the next five years, and the RHA has emphasised the central role of the road transport sector in sustaining economic momentum.
“Our submission to the Treasury makes it clear that a thriving road transport sector is crucial to the UK’s economic success. We’ve clearly highlighted key areas for investment and we’re calling on the Government to prioritise investment in key infrastructure projects, roadside facilities, skills development and on Net Zero to future-proof our vital sector and ensure that we can play our part in delivering the growth the nation needs,” stated RHA Managing Director Richard Smith.
Congestion and infrastructure investment need to be prioritised
The RHA’s submission stresses the urgent need for increased infrastructure funding, particularly through the next Road Investment Strategy (RIS3). Congestion currently costs the UK economy £30.8 billion a year, with each motorist losing an average of £968 a year due to traffic delays. With the Department for Transport predicting a potential 55% increase in traffic by 2040, infrastructure investment is vital.
The RHA argues that the level of funding allocated for RIS2, which totalled £27 billion, must be expanded to meet rising demands. Specifically, they are calling for at least £23.1 billion in funding for network enhancements, with the potential to increase to £32.1 billion if the Lower Thames Crossing project is not financed separately. The submission highlights that the current road strategy already delivers £26.7 billion in economic benefits and that further investment in key projects such as the A50/A500 corridor, the A14 Huntingdon to Cambridge scheme, and the A66 Northern Trans-Pennine route could unlock billions in additional economic value.
Potholes and local road maintenance a growing concern
The RHA has also flagged local road conditions as a critical issue, citing research that estimates potholes cost the UK economy £14 billion annually. The Centre for Economic and Business Research attributes £12.7 billion of this figure to the additional travel time caused by deteriorating roads. However, council budgets for road repairs have been falling, with the number of potholes filled in England and Wales dropping from 1.7 million in 2022 to 1.4 million in 2023.
To address this, the RHA is calling for a long-term road maintenance settlement of £16 billion, which would allow local authorities to undertake planned repairs instead of costlier reactive emergency fixes. The submission notes that planned road maintenance is up to 57% more cost-effective than reactive repairs, making sustained investment the best value for taxpayers.
Investment in driver welfare and safety required
The RHA has reiterated the pressing need for investment in roadside facilities for HGV drivers, particularly in regions with high demand for lorry parking and elevated freight crime rates. The association highlights that 4,500 lorries are currently forced to park in unsafe or unsuitable locations, as the national lorry parking network is already operating at a critical 83% utilisation rate, rising to 95% in some areas.
To alleviate this shortage, the RHA is calling for an additional £50 million over the next five years for the HGV Facilities Grant Scheme, on top of the remaining £21 million left unallocated from the current scheme. The investment would not only improve conditions for drivers but also enhance road safety, as facilities play a crucial role in ensuring compliance with mandatory driver rest periods.
Skills shortage threatens future of road transport
The RHA has identified a persistent skills gap as a major challenge for the industry, particularly among HGV drivers and heavy vehicle technicians. Research suggests that 40,000 new HGV drivers must be trained annually to maintain workforce levels, yet training costs remain a significant barrier for small and medium-sized enterprises.
Since 2021, government-funded HGV skills bootcamps have trained over 10,000 drivers, with 72% of those securing jobs. However, with these bootcamps due to end in 2026, the RHA is urging the government to extend funding.
The association also points to a serious shortage of heavy vehicle technicians, with the ratio of technicians per registered vehicle worsening from 1 per 25 vehicles in 2010 to 1 per 31 in 2023. The availability of technician training programmes has dwindled, with only 30 training providers remaining in the UK compared to over 100 in 2010.
To tackle these workforce challenges, the RHA is calling for greater flexibility in the new Growth and Skills Levy to allow businesses to use funds for non-apprenticeship training, such as short courses and skills bootcamps.
Decarbonisation plans require government action
The RHA’s submission also outlines the substantial financial challenges associated with transitioning the UK’s HGV fleet to zero-emission vehicles. The Green Finance Institute estimates that decarbonising the sector will require over £100 billion, with up to £75 billion needed for vehicle purchases and £24 billion for depot infrastructure.
With only 500 registered electric HGVs currently in operation across the UK, the RHA argues that the government must take urgent action to make the transition more affordable. While the £30 billion investment in National Grid upgrades is welcomed, the association is calling for additional financial support, including government-backed loans to help operators acquire zero-emission vehicles.
The RHA also stresses the need to ensure that the Rapid Charging Fund is extended to cover en-route HGV charging infrastructure at motorway service areas and truck stops. The submission warns that without immediate action, businesses will struggle to meet the government’s 2035/40 phase-out deadlines for new diesel HGV sales.
Government must act to support a vital industry
The RHA makes clear that the road transport sector is fundamental to the UK’s economic success, contributing £13.5 billion annually and representing 5.6% of GDP. With employment in transport and logistics growing by 26% since 2010, outpacing the 14% growth in the broader economy, the association warns that failing to support the industry could have significant repercussions for the UK’s economic stability.
“The road transport industry is the backbone of the UK economy, and without urgent investment in infrastructure, driver welfare, skills, and decarbonisation, we risk stalling economic growth,” the RHA stated in its submission.