Business, Forwarding, Freight News


Reeves’ budget is curate’s egg, says BIFA

[ November 28, 2025   //   ]

The Chancellor’s Budget on 27 November contains measures that offer both modest support and serious cause for concern for the freight and international-trade community, says the British International Freight Association.

On the positive side, the retention of the 5p fuel duty cut until August 2026 and the business investment incentives (such as full-expensing of capital investments) provide a small window of relief and opportunity for investment in fleet renewal and supply-chain infrastructure. However, BIFA remains deeply worried about the planned gradual reversal of the fuel-duty cut from September 2026. This will significantly raise operating costs for haulage and freight firms just as many are still recovering from recent economic pressures.

The decision to abolish the de minimis threshold — removing the exemption for low-value imports under £135 — levels the playing field for UK businesses competing with low-cost online sellers disproportionately benefiting from the loophole.

But while eliminating de minimis relief could bring new business for BIFA members that offer customs processing services, it could also increase customs duties, imports costs and border-processing burdens — which may create short-term disruption for some freight and parcel operators, and add complexity to small-parcel logistics. BIFA has welcomed they delay for the measure until 2029, which gives business time to prepare.

The additional financial support and targeted trade infrastructure package for Northern Ireland firms, including the new Internal Market Package to help businesses trade smoothly between Northern Ireland and Great Britain — is also welcome, says BIFA. It offers much-needed support to firms still managing the challenges posed by post-Brexit trading arrangements.

BIFA adds that the changes under the new SPS (sanitary & phytosanitary) agreement with the EU are expected to reduce red tape on food, agricultural and other regulated goods — potentially speeding up cross-border freight and lowering compliance costs for businesses operating complex supply-chains.

More broadly, the wider tax increases and freezes on personal allowances, combined with projected rises in employer costs, risk depressing consumer demand and increasing downstream cost pressures — which may reduce trade volumes and intensify margin pressure across the freight sector.

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