Autumn Budget 2024 Commentary: T&L Sector

The Budget has delivered a mixed picture for the Transport and Logistics sector. On the positive side, the freeze in fuel duty is a relief for road haulage businesses. Any increase would have inevitably rippled through the entire supply chain, pushing up costs and impacting both businesses and consumers. By keeping fuel duty steady, the Government has shown awareness of the sector’s reliance on stable fuel pricing.

However, the rise in Capital Gains Tax, along with upcoming changes to Business Asset Disposal Relief, has raised concerns among the many owner-managed and family-run businesses within the sector. From 6 April 2025, the Business Asset Disposal Relief tax rate will increase to 14%, and from April 2026, it will align with the main lower rate of 18%. For business owners considering succession or sale, this increase will make exits more costly, potentially impacting retirement planning and the overall appeal of family business continuity. These changes are substantial, especially for a sector that traditionally values continuity through family or close management transitions.

The additional increases to employment costs through the National Living Wage and employer National Insurance contributions will also place pressure on businesses already navigating a competitive labour market and intensifying operational expenses.

Finally, the investment in railway infrastructure and the retention of incentives for Electric Vehicles as company cars reflect some forward-thinking steps toward a greener, more connected transport sector. While these initiatives are promising, the industry will be watching closely for clarity on how these plans will be implemented to maximise benefits for logistics providers.