Government hands supply chain organisations “olive branch” with new budget

The UK government’s latest budget has handed logistics firms an “olive branch that will reduce the strain of the ongoing crisis, according to ParcelHero.

The sector has been at loggerheads with the government in recent months after ministers blamed the HGV driver shortage that has crippled the industry on a lack of investment.

Freight bosses hit back at the claims and said that the shortage was down to the loss of the 1.3 million “unskilled” workers after Brexit.

“After a rocky few months, logistics and delivery companies have finally heard some positive news from the Government,” ParcelHero head of consumer research David Jinks said.

READ MORE: Iceland missing 15% of its store deliveries amid HGV driver shortage

“Chancellor Rishi Sunak’s Budget kicked off with an acknowledgement of the challenges facing the sector and the announcement of new measures that will aid freight transport companies and the many small retailers and manufacturers they serve.”

The home delivery firm added: “ParcelHero welcomed the Chancellor’s opening announcements on supply chains and freight transport.

“He confirmed relaxations on temporary visas and also announced new lorry park facility plans, an extension of the HGV levy through to 2023 and the removal of vehicle excise duty on HGVs.”

The company believes that the transport and infrastructure announcements made during the Budget will improve the outlook of the sector.

“The tax change to encourage shipping companies to the UK could attract more of the world’s largest shipping companies to UK shores,” it added.

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