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Subject
Your Message I am contacting you as a local business to ask for your support in the upcoming Spring Budget. My industry faces severe challenges. The costs of running a typical 44-tonne HGV (excluding fuel) rose by nearly 10% in 2023 – and that’s on top of the 20% increase we absorbed in 2022. The broader economic slowdown has resulted in freight volumes being 10% lower in 2023 than in 2022, with hauliers making 6% fewer trips last year than the year before. Taken together, these have created serious difficulties in the commercial transport industry- over the past 12 months, more than 450 haulage businesses have collapsed – double the number that became insolvent in 2022. Long-standing businesses like Knights of Old Group, Lloyd Fraser, and Tuffnells have gone into administration. As you are no doubt aware, the road haulage industry is critical to our nation’s economic success. 89% of freight in this country is moved by road, with that proportion rising to 98% for food and agricultural products. As you will know, rising costs in my industry are inflationary. When the cost of distribution increases, people see higher prices in their everyday shop. Wide swathes of the economy are affected: construction, medicine, and manufacturing to name just a few. While I understand that the causes of our economy’s current difficulties are complex, there are concrete steps that can be taken in the upcoming Spring Budget to ease pressure on my business and the wider industry. I am asking you, in your capacity as my local MP, to write to the Chancellor supporting the budget asks of the Road Haulage Association, of which I am a member. At a minimum, I would like the Government to: · Continue the freeze on fuel duty, and maintain the 5p cut · Temporarily suspend Vehicle Excise Duty on HGVs and the HGV Levy · Introduce an emissions-linked rebate on fuel duty on alternative fuels. · Introduce an essential user rebate on fuel duty for haulage firms · Reform business rates to support transport businesses operating warehouses. · Extend full expensing to the cost of vehicle leasing · Encourage training providers and colleges to offer heavy vehicle mechanic apprenticeships by increasing the funding band available to at least £23,000 · Reduce Employers’ National Insurance for operators training new starters, allowing greater investment to upskill UK workers · Introduce measures to reduce the insurance premium tax which disproportionately impacts road transport operators due to the number of mandatory insurances There are hundreds, if not thousands, of logistics professionals who live and work here, and thousands more who rely on us. Our country needs a strong road haulage sector to thrive. If you would ever like to visit our site and see the work we do for yourself, I would be delighted to host you. In the meantime, I would be immensely grateful for your support. I look forward to reading your response. Kind regards,
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