Environmentalism is always now a hot political topic and it made its presence in effecting the 2020 UK Budget given by the Chancellor of Exchequer on the 11th of March. This particular budget had several significant changes which is going to impact logistics and its operations. One of the significant ones is the scrapping of red diesel subsidies for all industry sectors apart from farmers and rail operators. This will mean that equipment such as gencon sets used for moving reefer containers from the port to their delivery place will now have to use standard diesel. It will also mean temperature controlled trailer operators will also have to now use standard diesel. This is going to have a significant effect on pricing logistics companies will have to charge. This may well lead to the replacement of these generators with battery packs. However before this happens there is the issue of getting suitable charging points installed lorry parks so they can be plugged in while drivers take their required breaks. Lorry drivers are not going to be able just to pull up to an ordinary car charging point and use that.
A possible negative for the environment from the budget was the freezing of fuel duty for the 10th year running. While some environmentalist’s felt this should have increased to help encourage the take up of alternative fuels, as diesel usage is a major contributor to logistics impact on the environment it operates in. However the situation with the economy at this time makes it probably not an option to do anything with. Additionally the change in attitude towards the use of electric vehicles and the environment in general means that this has overall less impact that what it may have had if this had been twenty years ago. Big commercial fleet operators are already starting to run out fleets of electric delivery vehicles in towns and cities around the UK. It is very unlikely that the freeze on duty is going to reduce these plans. Particularly as companies are very concern on how their green credentials are perceived.
The government has announced it is planning to support the use of electric vehicles by pledging a £500 million investment scheme in rolling out a network of charging points for plug-in vehicles. These charging points will be suitable for use by electric light goods vehicles such as transit vans. This will encourage businesses to adopt their use knowing that they are not going to have to spend time trying to track down a charging point. A Rapid Charging Fund is also going to be established to help small businesses install charging points at workplaces.
The government is going to have further investment in improving air quality. This will probably result in additional investment in road junctions which are particularly prone to congestion. The investment will result in better flowing traffic, and less idling engines sitting in traffic queues. A win for the environment in less emissions being produced and transport operators benefit in saving fuel and quicker movements.
On Wednesday 11th March the new Chancellor of the Exchequer, Rishi Sunak, the man who controls the UK purse strings , gave his first budget. This sets out his plans for the UK’s coming financial year and beyond. Unusually for a conservative government it was very big spending one. In fact one of the biggest for any Conservative party budget in the past thirty years. While there was a considerable amount give to the NHS to assist with handling the Coronavirus, there was additionally some significant sums of money going into infrastructure projects which will directly impact the UK logistics sector.
The freezing of fuel duty once again will certainly be appreciated by road hauliers across the country, it is the changes to red diesel which is going to cause some concern in the transport industry. While the rail industry is excluded from the proposals, it is going to appear to have an impact on reefer operators as they will now have to use standard diesel and this is going to have large cost impact on operating these type of containers and trailers.
The money made available for fixing potholes which is problem which appears to be getting worse is a significant investment and will hopefully help get the issue under control. The vehicle operators will especially welcome this as they are constantly incurring repair costs due to the increased wear and tear caused by potholes. However it would be useful if the councils where able to make more effort in ensure that road contractors when the conduct road works, put the road back in durable condition and not start falling apart after 6 months of traffic.
All the £600 billion infrastructure projects have not yet been announce. However probably the biggest will be the HS2 Railway Line which comes in at £100 billion at current costings. Once completed it should free up the congested southern section of the West Coast Mainline Railway and allow for more general freight services. The £27 billon of new roads mentioned is part of the the previously mentioned figure. Apparently this will included a new tunnel for the long discussed A303 near Stonehenge which will certainly help road hauliers in this region once completed. It will hopefully mean that the City of Lincoln will finally get its badly needed ring road completed. The council is awaiting approval for financing for the final section. Once completed it will have taken over 70 years from planning to completion. The irony is that the road will probably be operating at capacity almost straight away so the council will have to apply for further funds to increase capacity. Hauliers in the area will be no doubt be pleased when it is finally completed. Trucks who go East to West and no longer have to trek around the busy northern half to get to the other side and going North to South no longer means passing through the city centre.