The Chancellor’s Autumn Budget offers some welcome support for transport and logistics, particularly through the extension of the 5p fuel duty cut and plans to reduce electricity costs for eligible businesses. However, CILT(UK) believes the Budget does not go far enough to address the sector’s wider operating costs or provide the long-term infrastructure investment needed to support growth, resilience and decarbonisation.
The key question for members is whether the measures announced will translate into support for sustained investment in the infrastructure businesses need to shift away from fossil fuels.
1. Fuel duty: welcome short-term relief
The Government has extended the 5p fuel duty cut for a further six months and deferred the planned Retail Prices Index increase until 1 July 2027.
Maintaining the freeze is welcome and will help the sector through a challenging period. However, fuel duty relief alone will not address the wider cost pressures facing operators.
2. Electricity costs and decarbonisation: clarity is needed
The Budget includes plans to reduce electricity costs for eligible energy-intensive businesses through the British Industrial Competitiveness Scheme from April 2027, with bills potentially reduced by up to 25%. It also aims to reduce the influence of volatile gas prices on electricity costs over the longer term and lower prices at local, lower-powered public EV chargers.
Lower charging costs could support the transition to electric vehicles, but the eligibility of transport and logistics operators for wider electricity support remains unclear. Businesses investing in electric vans, HGVs, rail freight and port infrastructure need affordable, reliable power for the long term.
Daniel Parker-Klein, Director of Policy and Communications at CILT(UK), explained: “We need to look beyond immediate cost pressures and ensure businesses have the confidence and practical support to invest in sustainable transport. High electricity costs and limited grid connections continue to make investment challenging and less attractive.”
CILT(UK) is calling for clearer commitments on electricity affordability, grid access, charging infrastructure for electric vans and HGVs, rail electrification and shore power for ships and short-sea ferries.
3. Roads and regional connectivity: investment must deliver
The Budget supports the Government’s wider growth ambitions, including infrastructure development and greater regional control over investment. Planned road repairs and regional transport investment remain important to keeping supply chains moving.
Reliable roads and regional connections are essential for freight movements, workforce access and local economic growth. The Government must provide a clearer, long-term direction for investment across road, rail, public transport and maritime.
4. Business rates and employment costs: potential pressures remain
The Budget includes business rates support focused on retail, hospitality and leisure properties in England. Equivalent measures in Scotland, Wales and Northern Ireland are not guaranteed, as these decisions are devolved. The National Living Wage will rise by 3.9% to £13.21 an hour from April 2027.
While labour costs are a significant consideration for operators, the extent to which individual businesses benefit from the announced measures will depend on eligibility and the applicable arrangements. Clarity is needed on the impact of business rates measures across the logistics sector and the potential for regional disparities. Budget decisions must also avoid undermining businesses’ ability to invest and deliver services.
5. Affordable bus travel: a welcome step towards better connectivity
CILT (UK) welcomes the decision to cap single bus fares at £2 across England outside London for a year from January 2027. Keeping bus travel affordable is vital to helping people access jobs, education and essential services, while supporting more sustainable travel choices. We hope this measure will be part of a longer-term commitment to affordable, reliable and accessible bus services.
What should members take away?
The Budget provides some immediate relief, but the longer-term benefits for transport and logistics will depend on implementation. Fuel duty support is welcome, and measures to improve energy affordability and infrastructure could create opportunities. However, eligibility, funding and delivery remain important questions.
Daniel Parker-Klein, CILT(UK)’s Director of Policy and Communications, concludes: “We welcome steps and look forward to working with Government on these moves which recognise the importance of transport and logistics to the UK economy, but there is much more to do. The sector needs support to manage the cost pressures it faces today, alongside a clear, long-term commitment to sustainable, resilient transport and better infrastructure.”
CILT(UK) will continue to work with Government and advise on policies that strengthen supply chain resilience, support economic growth and give transport and logistics businesses the confidence to invest in a more sustainable future.
Read our full reaction to the budget here.