A budget that does not recognise the value of Cold Chain to the UK
Responding to the Autumn Budget 2024, Phil Pluck, CEO of the Cold Chain Federation, said:
“The Autumn Budget 2024, the first from the Labour Government, is clearly one of the biggest tax hikes in the last twenty years. But it could have been worse.
I welcome the decision to freeze fuel duty and extend full expensing, both of which the Federation has strongly advocated for.
The focus on new fiscal rules for infrastructure investment is promising. We eagerly anticipate progress in removing the obstacles hindering our sector’s growth. However, it’s crucial to collaborate closely with industry to ensure that investments in future industries drive UK-wide growth.
However, a £40 billion increase in taxation, where we see businesses directly contributing £25 billion to increased national insurance, is concerning. Especially so when you consider an increase in the National Minimum Wage and possible increases in borrowing rates due to pressure on inflation due to new fiscal borrowing rules.
The UK cold chain sector adds £14 billion to UK GDP; it already contributes £3.7 billion in UK tax and employs over 184,000 people. This is a budget that simply does not recognise or fully support its continuing contribution as vital part of UK national infrastructure.
You cannot isolate these increased fiscal pressures on business without including the recent announcements in the proposed Employment Bill.
It all adds up to a message to industry and the cold chain sector that says the country is in a financial mess, so we expect employers to dig us out of this. Our message back is, “we already are, we have been for many years and now is the time to recognise our contribution, not penalise it.”
But, along with the added business pressures resulting from the budget, there is further encouragement to add to the fuel duty freeze.
For the cold chain sector, the extension of full expensing is a significant boost. This will empower businesses to invest in cutting-edge technology, enhancing productivity. Additionally, the extension of current climate change agreements provides much-needed certainty as we invest in energy efficiency and plan for a sustainable future.
While these measures are positive, we remain disappointed by the lack of rates reform for cold stores and additional support for the transition to next-generation transport refrigeration units. We urge the government to prioritise these areas in future policy decisions.”
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