Yesterday’s budget saw a raft of announcements of investment in road infrastructure, this is both welcome and long overdue. Investment in our roads is vital for boosting productivity in the logistics sector, so critically affected by congestion. According to research we conducted in 2019, LCVs represent only 15.4% of total UK traffic but are actually the sector the most affected by congestion. The estimated price tag for operators is £6.5 billion, a significant drain on national productivity.
Some 3.4 million people rely on vans for their job – with a combined annual wage bill of £56 billion, or 11% of the country’s GDP. As the backbone of British society, the importance of the LCV sector cannot be underestimated.
A lot more needs to be done to maximise the opportunities as we transition the UK to new technologies. The extension of the plug-in van grant until 2022-23 and the decision to take more time to assess the introduction of a new VED system are steps in the right direction. The promised spending review and an Autumn Statement, will be a crucial moment for government to set out a long term vision for transport infrastructure investment in the UK among other things.
Our report on LCVs can be found here.