Rachel Reeves told to make 1 major UK haulage change
Rachel Reeves has been issued demands to make one major rule change which could impact haulage firms across the UK.
Rachel Reeves has been told to introduce one major haulage rule change after concerns were raised by experts. Logistics innovation platform TwentyForty has claimed that the UK’s Plug-In Truck Grant was being absorbed by larger fleets.
The specialists explained that smaller firms were being shut out and demanded that new rules are introduced to balance the playing field. The UK’s Plug-in Truck Grant helps businesses and hauliers reduce upfront purchase costs of new, zero-emission lorries and HGVs.
The Department for Transport has previously claimed that companies like Amazon and Marks & Spencer have already rolled out electric delivery trucks on UK roads as part of the scheme. However, experts at TwentyFour have now called on officials to ensure that at least 40% of annual grant funding for operators are ringfenced for smaller firms operating with less than 50 vehicles.
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The group laid out their claims in a new report, “Making the Numbers Work: The Commercial Case for Electric Freight”.
The study explained: “The current Plug-in Truck Grant structure allows large operators placing bulk orders to absorb the entire allocation. Reserve at least 40% of annual grant funding for operators with fewer than 50 vehicles. Without this, the operators who most need support to start their electrification journey are the ones least likely to get it.
“The Energy Systems Catapult’s attempt to engage SMEs in business model research received zero responses. That should alarm everyone.”
The study added: “Grant funding needs ring-fencing for smaller operators. Without it, the 70% of the industry that most needs support will never start. Everything else in this section matters. But those three would unlock the most progress, fastest.”
Under the UK’s Plug-in Truck Grant, hauliers and fleet operators can get access to discounts of up to £120,000 on new electric trucks thanks to an additional £18 million in investment.
Those buying some of the largest lorries, over 26 tonnes, can receive the highest £120,000 discount, with reductions on a sliding scale depending on the vehicle.
Larger trucks between 18 tonnes and 26 tonnes can receive up to £80,000, with mid-sized trucks of around 12 tonnes to 18 tonnes can get up to £60,000.
The savings don’t end there, with smaller trucks between 4.25 tonnes and 12 tonnes able to save up to £20,000. The programme is part of a wider £318 million plan to reduce emissions across green freight.
