Question to the Department for Transport:

To ask His Majesty's Government what steps they are taking to address the issue of increased operating costs for hauliers, including those related to (1) fluctuating fuel prices, and (2) administrative requirements relating to the Windsor Framework.

The Government has continued its support for haulage companies by freezing HGV Vehicle Excise Duty and the HGV Levy for 2024-25, as announced at Autumn Statement 2023. This has resulted in a tax saving for one of the most popular HGVs (a 38-44 tonne articulated lorry with 3 axles, EURO VI) of £47 per annum. These measures form a package of support for hauliers, alongside the freezing of Fuel Duty as announced at Spring Budget 2024.

More broadly, at Autumn Statement 2023, the Chancellor announced that full expensing would be made permanent, meaning companies can claim 100% capital allowances on qualifying main rate plant and machinery investments, so that for every pound invested its taxes is cut by up to 25p. Following representations from industry – including the haulage sector – at Spring Budget 2024, the Chancellor confirmed that draft legislation on extending full expensing to assets for leasing will soon be published for a period of technical consultation. The extension will remain under consideration for a future fiscal event.

Additionally, the Windsor Framework will ensure the smooth flow of goods within the UK internal market. Under the new UK internal market system, which will come into force later this year, there will be no checks save those conducted by UK authorities as part of a risk-based or intelligence-led approach to tackle criminality, abuse of the scheme, smuggling and disease. The requirements in the old Protocol for both international customs paperwork and supplementary declarations will also be scrapped.

The Department for Transport does not hold a formal assessment of the specific impacts of fuel prices on businesses, nor on haulage and transport industries. However, the department is in regular contact with haulage and other transport sectors where discussions include the impact of fuel prices among other economic factors.

The Department for Energy Security and Net Zero publishes weekly fuel prices and the Office for National Statistics conducts a regular survey of business sectors on concerns such as energy prices.