The entire retail landscape, from supermarkets to convenience stores and grocers, relies on a strong supply chain to keep its shelves stocked. However, the essential services that logistics companies and their fleets of trucks and vans provide seem to have passed the Chancellor by.
In just five months, the government has hit the sector with two increases in fuel duty. The latest, which came into force on April 1, left operators having to find an additional £917 per truck each year. And with the Treasury coffers under strain, the FTA is worried that the government will seize the opportunity of the Budget later this month to take another bite of the cherry and increase duty yet again.
But you may be asking, what has that got to do with me? Why should I care when I’m already fighting my own war against the downturn on so many different fronts?
The fact is that the logistics sector cannot bear this extra financial burden alone and, regrettably, those additional costs are going to have to be passed on to the buyer of those transport services. For some operators, they have little choice but to take this action and for many, it will be the difference between staying afloat or going under, leaving the buyer on the look-out for a new distribution offer. Neither of these options will be particularly attractive.
That is why we are looking for support for our Every Penny Counts campaign, which aims to get the government to rein in any temptation it may have to put up fuel duty again in the Budget.
Already, more than 70 MPs have signed a parliamentary petition supporting the campaign and we have also had support from the media. Now we are asking for the fresh produce industry’s support.
This is a campaign that matters to everyone, whether you are buying in your transport services or buying a loaf of bread. This additional cost burden will hit everyone in the pocket unless we get the government to see sense.
For most of us, transport is something that just happens; it is part and parcel of everyday life. Imagine how difficult that life would be without the businesses that are the lifeblood of British retail. That could be a reality if the Chancellor hits us again. Already, insolvencies in the transport sector are rising sharply and last year alone saw a massive 236 per cent increase in the number of HGV drivers claiming jobseekers’ allowance, while van drivers claiming jobseekers’ allowance went up by 60 per cent.
Around 2.3 million people are directly employed in the logistics sector and more are involved indirectly. Many of these jobs are now at risk and, if the Budget brings yet more bad news, those job losses will be at the hands of the government.
We are a proud sector, with a long and worthy history. We are not going cap in hand to the government - we are just looking for some understanding, a little common sense and investment in an industry that has done the country proud. And all we need from you is your name on a postcard.
To find out more about the Every Penny Counts campaign and lend your support, visitwww.fta.co.uk/epc
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