The UK’s fleet, automotive and logistics sectors have issued a direct challenge to newly appointed Prime Minister Andy Burnham and returning Transport Secretary Heidi Alexander, warning that the
The UK’s fleet, automotive and logistics sectors have issued a direct challenge to newly appointed Prime Minister Andy Burnham and returning Transport Secretary Heidi Alexander, warning that the industry needs “clarity, not complexity” to unlock economic growth.
While business groups broadly welcomed the new administration following Burnham’s meeting with King Charles, fleet leaders made it clear that goodwill must quickly translate into policy changes. High on the sector’s wish list are a rethink of vehicle taxation, a review of the Zero Emission Vehicle (ZEV) mandate and immediate action on grid connectivity.
Software firm FleetCheck suggested the arrival of the new Prime Minister opens a vital window to revisit the ZEV mandate and the upcoming Electric Vehicle Excise Duty (eVED), both of which remain among the most contentious recent government policies for the fleet and auto sectors.
“We’ve heard very little so far about transport from the new Prime Minister but he does keep reiterating themes of being both business friendly and making life easier and less financially stressful for ordinary people,” said CEO Peter Golding.
“Both the ZEV mandate and eVED would seem to us to fall into these categories. They are policies that are expensive and add complication for companies operating cars and vans, and for motorists, too.”
Golding added that while fleet is not expected to be at the top of the Government’s agenda, it would be positive for the sector to be able to open discussions with the appropriate new ministers and their teams in a matter of weeks or months to express industry concerns.
Golding urged the new cabinet to align with Burnham’s business-friendly rhetoric.
“One of the criticisms of the Starmer government was that it too easily succumbed to what is sometimes called ‘Treasury brain’ – ideas that make financial sense for policy makers but not always for the people to whom they are applied.
“There have been noises from within the Burnham camp that they’d like to listen more closely and hopefully that approach will extend to policies that affect fleets. Especially, if we are able to see further changes to eVED or secure a delay, that would be a win for the fleet sector.”
Leasing firm Alphabet has also called on Burnham to prioritise fairness and clarity when considering future changes to vehicle taxation.
Caroline Sandall-Mansergh, consultancy and channel development manager, said uncertainty over eVED – plus likely changes to Benefit-in-Kind – were disruptive to budget and policy planning for businesses. Such policies also risk deterring the continued adoption of electric vehicles.
Sandall-Mansergh said: “We believe £15 to £30 will be added to monthly costs by eVED, so harming affordability and choice by potentially removing the cheapest vehicles from salary sacrifice schemes. Even small extra monthly costs can push vehicles out of reach, not just increasing prices but eliminating options entirely. The risk is that tax changes will remove this benefit for those it helps most, contradicting the Government’s stated equity goals.”
Sandall-Mansergh believes a simpler tax regime, embedded into EV charging costs, is a better alternative. This would act just as fuel duty does, so drivers are taxed based on the mileage they cover.
Industry reaction to Heidi Alexander’s reappointment as Transport Secretary was positive for providing much-needed stability, but industry figures warned against complacency.
Simon Smith, CEO of EV charging specialist Voltempo, said: “Continuity at the Department for Transport is welcome news, but continuity has to mean progress, not more of the same.
“The biggest obstacle to zero-emission freight is no longer technology, it’s bureaucracy. Planning delays, grid connectivity and outdated regulations around vehicle weights and dimensions are all holding back investment. The industry is ready to move. This must now translate into faster decisions on the barriers that continue to slow deployment.”
Paul Holland, managing director for UK/ANZ vehicle payments at Allstar parent firm Corpay, echoed the need for national consistency, particularly if the Government pursues further regional devolution.
“What businesses need above all is clarity and consistency of policy, regardless of who is in Downing Street.
“Businesses can adapt to change but what makes investment difficult is uncertainty about the direction of travel.
“If the new government chooses to devolve more responsibility to regions and cities, there is an opportunity to deliver transport and infrastructure investment that better reflects local needs. However, for fleets operating nationally, local flexibility needs to sit alongside national consistency. Without that coordination, there is a risk of creating a more fragmented operating environment, making it harder for businesses operating across the UK to plan and invest.”
Holland said the immediate priority is providing certainty on the issues that most directly affect fleet planning: the direction of the ZEV mandate, the planned fuel duty changes and how EV taxation will operate in practice.
“Those questions don’t change with a new Prime Minister and the sooner there are clear answers, the more confidence businesses will have to invest.”
The Society of Motor Manufacturers and Traders (SMMT) urged the PM to build on existing Industrial Strategy foundations.
Mike Hawes, SMMT chief executive, said: “The Labour Party has already demonstrated its commitment to automotive manufacturing through the Industrial Strategy and, building on those foundations, the sector can be a powerful engine for growth, delivering investment, innovation and high value jobs in every part of the UK.
“There remain many challenges for the industry, both at home and abroad, but if we strengthen our competitiveness and provide greater support for the transition to net zero, we can drive reindustrialisation and economic renewal in every region and nation of Britain. We look forward to working with the Prime Minister and his team to realise that opportunity.”
Meanwhile, the Institute of the Motor Industry (IMI) stated that the Government must quickly deliver where Labour has previously failed, cautioning that a deepening skills crisis is actively threatening safety on UK roads.
Nick Connor, CEO of the IMI, said that as vehicles rapidly evolve with electrification and automated tech, a shortage of qualified technicians is putting motorists and workers at risk.
To resolve this, Connor urged Burnham to deliver on past promises by meeting five immediate demands that include elevating automotive, consistency on ZEV policy, mandating the IMI TechSafe standard, protecting apprenticeships and resourcing automotive skills as a Pillar of Skills England.
On the roads maintenance side, the Asphalt Industry Alliance (AIA) called for the new PM to maintain previous commitments to invest £7.3bn in local road maintenance over the next four years.
David Giles, chair of the AIA, said: “Local roads across England and Wales are already in a disgraceful condition, with the backlog of repairs now standing at a staggering £18.62bn. With every public service depending on a well-maintained and reliable road network it’s vital that the funding promised through to 2030 is delivered in full and not diverted elsewhere.
“Honouring the promised funding commitment to 2030 would help prevent the short-term, patch-and-mend approach to potholes that frustrates all road users, wastes public money and allows the condition of our local roads to deteriorate even further.”
Road transport and logistics sector trade bodies focused heavily on the sector’s vital role – as a key economic enabler – in driving growth.
The Road Haulage Association (RHA) said its asks and priorities remain unchanged by a new Prime Minister taking office.
Richard Smith, managing director, commented: “Our industry is critical national infrastructure that quite literally keeps the country moving. And that’s why we urge the PM to deliver solutions which empower the haulage, coach and van sectors to help stimulate economic growth, and support businesses to invest and thrive.
“We remind the PM that 85% of all goods in the UK are transported by road freight at some point. So, a much needed and clear National Freight Strategy would be a key enabler to unlock economic potential both regionally and nationally. “
Logistics UK chief executive Ben Fletcher suggested the Government should adopt the Prime Minister’s previous regional approach on a national scale.
“‘Manchesterism’ has been a great example of how an economy and city can thrive with a clear plan that puts transport at its heart,” Fletcher said. “The UK’s logistics industry employs people in every constituency across the country. Our sector wants to work with the new Government to take the best of ‘Manchesterism’ and turbocharge its delivery, linking up every town and city in the UK, as well as helping enable over a trillion pounds of international trade.”
Logistics UK also welcomed the reappointment of Jonathan Reynolds as Secretary of State for Business and Trade.
Fletcher said Reynolds’ return to the department was positive news for the sector.
“Through his leadership of the Modern Industrial Strategy, Mr Reynolds highlighted the essential role logistics plays in enabling businesses to manufacture and trade, and the vital contribution it makes to local economies and job creation across all four nations.
“With the Government focused on boosting productivity and strengthening UK industry, recognition of logistics’ importance as a foundation of the economy will be critical to delivering growth in every region and nation. Mr Reynolds understands that the choices ahead of us are not between services and industry, but about how both of them together can turbocharge growth – a stronger logistics capability can be the catalyst the economy needs.”
