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Trade associations call on Chancellor for Green Super-Deduction programme
Logistics UK – along with seven other trade associations – has written a joint letter to Chancellor Jeremy Hunt MP, calling for a more flexible Green Super-Deduction scheme, once the current super-deduction programme finishes at the end of March.
Introduced from 1 April 2021, the super-deduction programme currently allows companies to claim 130% capital allowances on qualifying plant and machinery investments. With the scheme soon coming to an end, Logistics UK is calling for a permanent 100% tax deduction for capital spending, to support the transition to net zero and increased productivity. The joint letter highlights the need for such support to be more flexible than the current approach by extending it to leasing and short-term hire.
“With the deadline for net zero by 2050 drawing closer and many logistics businesses operating on tight margins, continued support for investment is vital,” said Denise Beedell, Senior Policy Manager, Logistics UK, “Businesses are increasingly assessing their operations to transition to greener technologies and, in addition to increased financial pressures, uncertainty remains regarding the best approach for decarbonisation. With costs rising, purchasing assets outright may not be the most economically viable way forward – especially for those who only need use on a part-time basis. As a result, many businesses are looking to lease or short-term hire, so we are calling on government to maintain its support for investment and introduce a more flexible approach.
“Logistics businesses are keen to decarbonise their fleets to meet net zero targets, however, they are already facing a 12.6% rise in vehicle operating costs, a reduction in energy support and a potential 23% increase in Fuel Duty. The creation of the suggested Green Super-Deduction scheme would provide much needed financial support and encourage greater investment in zero emission technologies.”
The signatories to the letter are: BVRLA, CECA, EAMA, FLA, Forum of Private Business, Logistics UK, Make UK and MTA.
*www.logistics.org.uk/campaigns
Published On: 02/03/2023 16:00:44
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In brief
LOGISTICS UK ENGAGES WITH WELSH POLICY MAKERS
Representatives from Logistics UK – Policy Director Kate Jennings and Policy Advisor for Wales Jonas Keat – travelled to Wales last week (20 February 2023) to tour Owens Group’s recently opened Cardiff Bay facility. Joined by Ian Jarman, Chair of Logistics UK’s Welsh freight council, the trio attended meetings with Welsh government, Industry Wales, and Transport for Wales.
Keat said: “This visit was well-timed to coincide with the recent publication of The Future of Road Investment in Wales report, and gave us the opportunity to engage with members of the Welsh Road Review Panel to clarify the route forward for transport investment in Wales.
“Following positive discussion with the Welsh government, we will be providing assistance towards the upcoming Wales National Freight and Logistics Plan by helping them to engage directly with our members on the future of Welsh freight.”
*www.logistics.org.uk/campaigns
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