James Child, Senior Associate Director in BNP Paribas Real Estate’s Research team comments on how the Chancellor’s budget will affect the UK’s logistics sector.
“The fuel freeze duty will get the headlines and it will certainly help businesses that have been adversely affected by the fuel shortages. But the UK is still suffering from a critical supply chain traffic jam, exacerbated by the shortage of HGV drivers, and failing to take action in the Budget would have been almost unthinkable with the festive season on the horizon. Short term visas for EU drivers may ease some of the backlog, but it is not a silver bullet and will not solve a long-term systematic shortage. For this, improving driver’s welfare and remuneration are crucial. It is therefore welcome that the Chancellor announced investment into roadside facilities and skills bootcamps.
“The announcement of additional investment into UK roads is essential for the continued resilience of the countries freight infrastructure, but perhaps most important were the announcements relation to zero emissions transport technologies. HGV & LGV emissions are increasing year on year as a result of our shift to increased retail spending online. Remedying this with environmentally friendly transport modes is an essential part of the UK’s effort to go Net Zero Carbon by 2050. This will also enable LGV’s to move with ease through city centres, many of which now have ULEZ’s which target poorly performing vehicles. The UK industrial sector was certainly well served by the Autumn Budget, but the jury will be out until the rubber meets the road.”
