Leading figures in the logistics sector have hit out at the Chancellor’s Autumn Budget, warning of rising costs and uncertainty for operators.
Kevin Buchanan, Group chief executive of Pall-Ex, told MT the government had missed a key opportunity to boost business and consumer confidence: “In one word, the Budget was a disaster,” he said. “It was an opportunity lost. All we got was more tax, which will only suppress confidence and investment. The industry needs investment in raising awareness of careers for young people and more access to low-cost or free training programmes. That’s a huge gap the Budget failed to address.”
Buchanan’s view was echoed by Bob Terris, chairman of Meachers Global Logistics, who took aim at the broader government approach. “This government is a disaster for our country and, unfortunately, this is likely to continue for the foreseeable future,” he said. “Much as expected, we got more taxes. Some of the measures will hit quickly, but some will be spread over a period of time. There appears to be no intention of reducing costs anywhere, which is a typical Labour approach.
“The obvious items are fuel and the changes to salary sacrifice schemes,” he added, “which will be very significant costs. None of the measures are likely to encourage growth or investment, which will ultimately affect employment opportunities. This will increase the number of unemployed and add to the benefits costs. All this follows the introduction of inheritance tax on private businesses and the increase on capital gains tax.”
Transport consultant Des Evans said the Budget was “cautiously mixed”, highlighting a number of factors affecting the transport and logistics sector. Most significantly, the budget plans to reverse the 5p-per-litre fuel duty cut from September 2026, and then gradually raise fuel duty back to pre-2022 levels, increasing operating costs for haulage, freight, delivery, and logistics firms that rely heavily on diesel.
However, Evans added that for infrastructure developers, ports, warehousing, and long-term freight/sea-linked logistics, there are arguably some gains. “Public investment, port and maritime incentives, and infrastructure money may create growth opportunities,” he said. “But for road haulage, delivery companies, and freight operators using diesel HGVs/vans, the budget seems negative in net effect, because rising fuel duty and other cost pressures likely outweigh the benefits, at least in the short to medium term.
“For smaller operators or companies on tight margins, the additional burden may be particularly painful. So overall, the budget is not unilaterally friendly to transport and logistics; but it does offer a mixture of ‘carrots’ and ‘sticks.’ ”
Moreton Cullimore, MD of Cullimore Group, said any increase in fuel duty would feed directly into household costs: “If costs for hauliers rise, then that affects the weekly shop,” he said. “The economy is flatlining and inflation is rising, This Budget should have gone further.”
Industry bodies have also raised alarms about the fuel duty changes. Earlier this week, the RHA said reversing the fuel duty cut was a “hammer blow” for operators already managing rising costs, while Logistics UK warned it would act as an “inflationary timebomb” that could push up prices throughout the economy.
