Chancellor of the Exchequer Jeremy Hunt today [17 November] delivered his autumn statement outlining the government’s fiscal policy for the coming year.
Along with announcements of tax hikes and spending cuts, there were some less-anticipated measures that could have a significant impact on the logistics industry.
Simon Hobbs, Chief Executive of Kinaxia Logistics, said: “The Chancellor’s announcements on the tax front were generally predictable, although it was surprising that he declared the elimination of the motor vehicle excise tax exemption for electric vehicles from 2025. The government should support such a greener energy shift.”
The government has justified the introduction of the excise tax on electric vehicles, saying that because of the significant transition already taking place towards their use, imposing the tax on all road vehicles “will ensure that all motorists begin to pay a fairer tax contribution”.
As part of his speech, Hunt said cuts in research budgets were a mistake and that instead he was aiming to increase research and development (R&D) funding to £20 billion by 2024-25.
Hobbs added: “The continued and much-needed investment in our UK infrastructure for at least the next two years is to be welcomed, as is support for some businesses through business tariffs. Infrastructure investments aside, there hasn’t been much positive impact or support for our UK logistics sector.”