ALTA call on Chancellor to address increased operating costs

Today, we’ve again joined with other leading logistics and freight trade bodies through ALTA: The Alliance of Logistics Trade Associations to write to the Chancellor – Rachel Reeves MP to continue highlighting our concerns about some of the measures announced in the recent Autumn budget.

We’ve requested a meeting to discuss changes that will increase the cost of moving essential goods and have a direct and consequential impact on the logistics sector and its ability to drive forward growth across the whole economy.

Our vital industry is essential to daily life across this nation. It supplies hospitals, schools, factories and shops with everything they need, every single day.

Businesses across our industry have real concerns about some recent announcements and we’re asking the Chancellor to consider the effect these changes will have on our sector and the knock-on impact this could have on the wider UK economy.

These decisions have come at a time when costs are already soaring with a number of businesses going into administration and others still at risk (last year, 500 haulage firms alone went out of business.) Operators want to know that the Government understands their concerns and is prioritising our critical industry.

The freight and logistics sector is a key partner to achieving the Government’s stated mission of kickstarting economic growth. We want to play our part, and we look forward to having the opportunity to meet with the Chancellor to discuss all these matters.

The ALTA letter has three key areas of focus:

· The impact of increased costs such as the increase in employers’ NI contributions. This will be an additional cost to our sector of £1.7 billion. This is at a time when costs are already too high. These changes will ultimately increase the cost of moving essential goods.

· The need for infrastructure investment and a long-term strategy to improve our road network – with projects that eliminate congestion, better connect the country and ensure the smooth and efficient flow of goods.

·The proposed business rates reforms will impact logistics businesses with warehouses, with the vast majority being small businesses. This will result in higher prices for the transportation of basic goods

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