The Chancellor of the Exchequer Jeremy Hunt today [17 November] made his Autumn Statement, outlining the government’s fiscal policy for the upcoming year.
Amongst announcements of tax rises and spending cuts, there were some less expected policies 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 removal of vehicle excise duty exemption on electric vehicles from 2025. The government should be supporting such a transition to greener energy.”
The government has given its reason for the introduction of excise duty on electric vehicles, stating that, because of the significant transition that has already occurred towards their usage, having the duty applied to all road vehicles ‘will ensure that all motorists begin to pay a fairer tax contribution’.
As part of his speech, Hunt said that cuts to research budgets would be a mistake, and that he instead aims 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 business rates support for some businesses. Other than the infrastructure investment, there was not much positive impact or support for our UK logistics sector.”