On Wednesday 15 March, Jeremy Hunt outlined his plans for the UK economy through the announcement of his Spring Budget. While much of it was very heavily focused on childcare and encouraging people to return to work, there were some announcements that will be welcomed by the logistics sector.

Fuel Duty frozen for another 12 months

We know all hauliers and logistics firms will be relieved by the temporary fuel duty cut remaining in place for another twelve months. When the 5p reduction in fuel duty was implemented in 2022, it was expected to save the average haulier £1,500 per annum. We welcome the extension for another year, as it will ease significant pressure on haulage and logistics firms who need their fuel budgets to stretch as far as possible.

Vehicle Excise Duty for HGVs remains frozen

We’re also pleased to see VED rates will remain frozen for another year for heavy goods vehicles. This was explicitly done to support the haulage sector.

Road tax rates for cars, vans and motorcycles will increase as of 01 April 2023 in line with inflation.

HGV Levy reform

A new HGV Levy will come into place as of 01 August 2023.

These reforms will focus heavily on the environmental impact of vehicles and is aligned with the UK’s international obligations.

Weight categoryNewest, cleanest vehicles (EURO VI or later)Older vehicles (Euro V or earlier)
From 12 tonnes, and up to 31 tonnes£150£195
Above 31 tonnes, and up to 38 tonnes£360£468
Above 38 tonnes£576£749

Further details about the reformed HGV levy can be found here.

A £200m fund to deal with the growing problem of potholes

After a harsh winter, the state of the UK’s roads is causing alarm for anyone within the haulage and logistics sector. We’re relieved that Mr Hunt has allocated £200m for highways maintenance, specifically tackling the growing issue of potholes. Not only will this reduce wear and tear on any tyres, but having a good road infrastructure is essential to safe driving.

The £200m is an additional bonus to the £500m that was committed in the 2021 Spending Review. The funds will be used specifically to repair road surfaces within many local communities.

The government has outlined how this money will be allocated to different towns across the UK on their website.

We’re paying close attention to the announcement of 12 new investment zones

Within his budget, Jeremy Hunt announced the implementation of 12 new investment zones across the UK. The purpose of these zones is to create thriving local economies and redevelopment, similar to how an investment into Canary Wharf transformed the area. These zones will focus on advanced manufacturing, research and development.

These zones will be located within the West Midlands, Greater Manchester, the north-east, South Yorkshire, West Yorkshire, East Midlands, Teesside, and Liverpool. Additional zones will be in Scotland, Wales and Northern Ireland.

As a logistics firm, we’ll be paying close attention to these redevelopments because £8.8bn has been set aside for sustainable transport schemes. We could anticipate the implementation of new clean air zones, as well as further investment into a greater EV charging infrastructure.