UK 2015 budget boosts roads, but retains fuel duty

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As the UK budget is announced – the first from the Conservatives alone in 19 years – the Guardian has published some nice infographics on the UK economy, while the BBC has listed the key budget points. As far as the logistics sector goes, fuel tax has not been increased, or cut, and the government has pledged a road-building programme. For businesses, taxes will go down, but they must support their workforce with increased pay.

And just in, a comment from James Stamp, head of transport at KPMG UK: “In the last budget, the government announced a major road investment programme worth £15bn. Today, the Chancellor announced that road tax (VED) income will be “ring fenced”. This provides some clarity about where funding for the ambitious road projects will be found. However, we note that while road tax raises around £6bn a year, this is dwarfed by income from fuel duty, which is around £27bn. We believe more of this income should be reinvested in roads and transport infrastructure in line with the Chancellor’s statement that money raised from drivers should be spent on the roads they drive on.”