Everyone understands the challenges that businesses went through in the year 2020. That doesn’t mean the challenges are over; companies continue to experience low ROI even now. But one of the most affected industries is “transport and logistics.” The travel restrictions contributed to too much loss for the industry.
Who do you think can set free the transport sector during this economic turbulence? It is the government because it has the powers and tools to enhance a suitable environment for businesses.
According to the 2021 budget presented to the UK parliament, we have reasons to smile. The budget targets to cushion companies and help us work towards a successful, post COVID-19 business environment.
Even though we can’t have all the answers concerning this sector, we have some powerful insights and hints about what the year 2021 will hold.
Here are the key insights from the announced 2021 budget;
· Initiation of Freeport Facilities
The 2021 budget states that ‘new English Freeports will be located in East Midlands Airport, Harwich and Felixstowe, Liverpool City Region, Solent, Plymouth, Teesside and Thames will be cited as historic economic zones. They entail distinctive regulations to make it affordable and easier to operate business.’
Ideally, we can’t tell the actual impact this will contribute to the UK freight sector and businesses until all the facilities come to fruition. We don’t even know when the institution will get back to normal operations the way they were three years ago.
What we can only tell now; is the insight captured in the 2021 UK budget. The budget is preferably attached with enormous benefits. The benefits include business rate relief, improved duties, and simple planning requirements. We believe all will work out but not sure since COVID-19 is still within the atmosphere.
However, the initiation of these freeports may boost job vacancies- this is an opportunity that will prove much benefits and growth for people across the country and not just for freight forwarders.
· Freeze in Fuel Duty
Fuel is the power engine of every economy, and many of us know and can attest to this same statement. When the price of fuel rises, the standards of living also increases and vice versa. The 2021 budget on the fuel duty- states that fuel duty will be frozen for the next 11th consecutive year. It may sound like the minor details of the 2021 budget announcement, but it is worth discussion.
It will give a more significant boost to haulers across the country. It will allow freight providers and businesses to cut on the cost allocated for fuel and invest that money into something else.
· Improved Incentive within Recruitment
Recruitment has been a challenge for a while within the freight sector- skill gaps are popping up more often, and the massive losses of EU workers as well. The impact of COVID-19 and Brexit made a considerable loss for several qualified and potential applicants leaving haulers overstressed and understaffed.
The 2021 budget touched on how the government plans to rescue the industry by increasing incentives to the recruitment process. The government is trying to facilitate and provide £3,000 per hire. This is an excellent approach to ensure the workforce in the freight industry is in a good state.
All freight businesses should develop a sound strategy from the impacts portrayed in the 2021 budget. There are several sections in the budget that we still need to explore and build a more robust and more successful business.