Road Haulage Association (RHA)

The closure of the Stellantis (Vauxhall's parent company) Luton van plant will mean 1,100 jobs are at risk in Luton and across South Bedfordshire. This deeply concerning news has left many across our industry asking the government what this means for its plans on the road to net zero. Many across the HGV, LGV and Coach sectors seek clarity and certainty to invest. We have long been calling for a clear roadmap and blueprint on the road to net zero for HGVs and coaches and we will continue seek clarifications in all our engagement with ministers.   Ministers have responded to the Stellantis news by agreeing to an immediate review of the ZEV Mandate policy for cars and vans. These rules currently say at least 22 per cent of vehicles made in British factories must be battery powered. More carrot, less stick! That’s the obvious conclusion we can draw from these events and this announced urgent review. If Net Zero is to succeed then, in the circumstances, I’m heartened that the Government appears to have got that clear message.   This week’s events have ramifications for the road transport and logistics sector. With lorries accounting for 20% of UK domestic transport CO2 emissions, we support the need to decarbonise and we’re clear that the phase-out dates for HGVs of 2035 and 2040 are needed to give industry the certainty it needs to invest in decarbonisation. However, we've been clear that expecting hauliers on tight margins to absorb the estimated £100bn cost by themselves was always going to be a tall order. With a ZEV mandate enforced by fines not yet applying for HGVs and coaches, an opportunity still exists to consider alternative ways forward for the heavy commercial vehicle sector.    Our different approach contains two elements - firstly, a loan scheme part underwritten by the Government is put in place to attract the investment finance needed; secondly, accountability through a requirement to report emissions would ensure that companies hold each other to account on their plans to reduce emissions. We believe this could solve some tricky technical problems emerging from the ZEV Mandate experience - such as ensuring that vehicles are manufactured to meet actual operational need. Meanwhile, urgent clarity is also needed on specific phase-out dates for coaches. Whilst we believe that their decarbonisation pathway will mirror that of lorries given their similar operating characteristics, a signal from the Government over its intentions for coaches will help drive the investment needed. We welcome the Government’s intention to review its ZEV Mandate approach, and we call on Ministers to clarify what all of this means for HGVs and Coaches. We want to see credible, affordable and realistic measures in place for the commercial vehicle fleet which support our unique circumstances, and which assist, not hinder, our sector’s ability to invest. As ever, I welcome your thoughts.

Hauliers are critical to successful trade between Great Britain and Northern Ireland and a robust and efficient GB-NI supply chain is crucial to the overall UK economy. There remains concern in our sector about divergence and the hurdles businesses must go through to send a range of goods from GB to NI. Looking ahead, businesses seek reassurance and further clarifications around the impact of the next set of changes due to be rolled-out in March. Earlier this year, we wrote to the NI secretary of State on behalf of the road transport sector to request a meeting to discuss these issues and to offer our recommendations. Today we repeat our ask. We’ll continue to engage with decision-makers at all levels, both nationally in Westminster and at a devolved level at Stormont. We’re committed to finding durable solutions which will protect and maintain supply chains across the United Kingdom and minimise the impact of new and evolving regulations on both business and consumers.

The CBI (Confederation of British Industry) Industry has warned that some recent changes will “increase the burden on business and hit their ability to invest.” At the CBI’s Annual Conference today, they revealed their post-Budget survey which indicated that two-thirds of all firms think measures in the Budget will damage investment with many business owners already having to change course when it comes to the recruitment and retention of staff. As the CBI’s CEO Rain Newton-Smith said, “margins are being squeezed and profits are being hit” when you hit profits, you damage competitiveness and ultimately that “hits growth.” The road transport sector is the engine room for long-term and sustainable growth across the United Kingdom. However, it has been an incredibly difficult few years with lower margins and more insolvencies than at any time in recent memory. There were some positive developments in the recent budget, such as the decision to continue with the fuel duty freeze. Equally, there were some unwelcome developments. The increase to employer national insurance contributions has left many operators with a lot to think about - as they add up the additional costs they now have to factor in. As running costs increase and margins tighten, higher national insurance contributions (15%), whilst lowering the threshold is a challenge for firms in an industry where 95% are small and medium sized businesses. Since the budget, when speaking with members across the sectors we represent; it’s clear these changes will impact businesses of all shapes and sizes, be that operators of HGVs, LGVs or coaches. These changes and other cost implications from employment law reforms are increasing the strain on firms and will hinder the ability for some to expand or hire new staff. We’ve been consistent that the Government’s vision for long-term economic growth won’t be realised without supporting our sector – a sector that contributes billions to the economy and is key to daily life. We must see more collaboration between business and government. Planning reforms, investment in infrastructure and clarity and certainty to invest are all necessary. We're key economic enablers and we must be on the front foot to future-proof the supply chain. Policymakers need to work alongside us to minimise the financial burden and the regulations placed on businesses. As our members await further announcements to better understand Government plans on infrastructure, we’ll continue to engage with MPs, Ministers and stakeholders across the country. Ultimately, the next few months will give us some indication as to whether firms can invest. The true test of the recent budget will be whether businesses can navigate difficult times to generate the growth that’s required to boost the economy. Businesses will therefore need the support of decision-makers in Westminster, Holyrood, Cardiff Bay and Stormont to remove barriers to growth. We stand ready to work with them to achieve this.