Logistics, Road


Logistics UK calls for support amid Middle East crisis

[ April 20, 2026   //   ]

Logistics UK is urging government to support the country’s logistics sector in the face of rising costs caused by the Middle East conflict.

Chief executive Ben Fletcher said: “Logistics businesses operate on very narrow margins, but are facing spiralling costs, most notably the price of fuel, with the cost of filling up a large HGV having risen by 30% to nearly £1,000 between 23 February and 6 April. Around half of businesses we’ve surveyed say they are passing on a lot of this cost, meaning higher prices on the shelves, and the other half are unable to, creating severe cash-flow issues.”

Fletcher described the pressures on the sector as “unsustainable”, adding that they risked pushing up inflation, weakening growth and creating severe cash-flow issues He added: “Our members need an urgent package of support from government to help weather the storm. The policies we have proposed would also support logistics businesses to switch to net zero technologies over time, increasing the UK’s energy independence.”

In the short term, Logistics UK is pressing Chancellor Rachel Reeves to reconsider her plan to begin increasing fuel duty by 5p from September. From the end of February to 6 April, the Treasury has benefitted by an increase of more than £40 million from VAT, thanks to fuel price rises, so a decision to maintain the 5p per litre cut on fuel duty would not harm the tax take, and would be a welcome boost in such straightened times.”

Logistics UK is also urging the Chancellor to support the logistics sector with its electricity costs and the costs of decarbonisation, by including logistics in the British Industrial Competitiveness Scheme, and to bring it forward from 2027.

It is also urging the Chancellor to take action on business rates, saying that the recent increase in business rates on warehouses and other parts of the logistics sector could not have come at a more unfortunate time.

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