Guidance & Support

Motorists may soon see the return of higher fuel duty and a new pay-per-mile system, as the government looks for ways to plug the financial gap left by the move to electric and hybrid vehicles. Accounting firm RSM UK has warned that declining fuel duty revenues could prompt significant tax changes in the upcoming Autumn Budget.

HMRC figures show that fuel duty receipts between April and September 2025 totalled £12.2bn — £26m less than the same period last year. RSM UK’s Sheena McGuinness said the decline reflects the ongoing shift to electric vehicles (EVs), which, while positive for the environment, is squeezing government income. Fuel duty once accounted for nearly 7% of the UK’s tax revenue in 2019/20, but is expected to drop to just 2% by 2025/26.

With fuel duty frozen since 2011 and a 5p-per-litre cut still in effect, McGuinness said the Chancellor could reverse the reduction to help balance the books. Falling oil prices, she added, make this an opportune moment to align duty rates with inflation — a move already included in OBR forecasts.

However, McGuinness noted that restoring the 5p cut alone won’t be enough. She suggested a more lasting measure could involve a pay-per-mile tax on EVs, consolidating fuel duty, vehicle excise duty, tolls, and congestion charges into one simpler system. The Resolution Foundation has proposed linking such fees to vehicle weight, reflecting road wear, emissions, and safety impact.

Logistics UK has urged the Treasury to avoid any hikes in fuel duty, National Insurance contributions or business rates in next month’s Budget, warning that such moves would increase costs across supply chains and worsen inflation. In its submission ahead of the Chancellor’s speech, the organisation said the haulage industry is already under significant financial strain and cannot absorb further tax pressures without harming economic growth.

The logistics sector employs around 2.7 million people—around 8% of the UK workforce—and is still grappling with the impact of rising employer National Insurance costs, estimated to add £1.7 billion to the industry’s bills this year. Acting chief executive Kevin Green said fuel accounts for nearly a third of the operating cost of a 44-tonne HGV, adding that any rise in duty would “do the exact opposite” of bringing inflation down.

Green noted that smaller haulage firms are particularly vulnerable, as they often lack contracts allowing them to pass on higher fuel costs to customers. He also warned that business rates reforms could add “millions” to operators’ expenses, further pushing up consumer prices.

The group called for a balanced approach, urging ministers to protect investment in logistics infrastructure and explore incentives for cleaner fuel alternatives, rather than increasing taxes on essential operations.

A pay dispute between DPD and a group of its self-employed delivery drivers has been resolved following talks between company managers and driver representatives, the parcel firm has confirmed. The disagreement centred on changes to payment rates for smaller parcel deliveries, which prompted some drivers to temporarily stop work earlier in the week.

It had been feared that the dispute could lead to several days of disruption, after drivers operating under DPD’s franchise model planned to strike for three consecutive days. However, the situation was quickly defused when discussions between the company and affected drivers resulted in an agreement after just one day of industrial action.

In a statement, DPD said only a “small minority” of drivers had chosen not to work on Tuesday in response to rate adjustments designed to reflect shifts in the company’s parcel traffic profile. The firm added that “the vast majority were working as normal” and confirmed that those who had taken part in the protest returned to work on Wednesday.

DPD did not confirm whether the deal reached was a permanent solution or a temporary measure before further changes in January. However, the company’s swift response appears to have averted wider disruption across its national delivery network.

As colder weather sets in, coughs and colds are sweeping through depots, offices, and vehicle cabs across the UK. But according to Dr Oscar Duke, it’s not the drop in temperature that’s to blame — it’s our tendency to stay indoors in close quarters. For those in logistics and transport, that means shared vehicles, busy warehouses, and long hours in confined spaces, all of which make it easy for viruses to spread between colleagues.

Recognising whether it’s a cold, flu, or Covid can help drivers and warehouse teams manage symptoms effectively. A cold often starts slowly, affecting the nose and throat, while flu arrives suddenly with fever, aches, and exhaustion — the sort that might make it unsafe to drive. Covid symptoms can be similar but often include a loss of taste or smell and, in newer strains, a sharp sore throat or stomach upset. If symptoms are severe or don’t ease after a few weeks, medical advice should be sought.

For those still on the go, Dr Duke recommends simple self-care. Paracetamol or ibuprofen can reduce fever and pain, while staying hydrated and eating well helps recovery. Vitamin D supplements are useful in darker months, and decongestant sprays should only be used briefly to avoid dependency.

Finally, drivers and logistics workers are urged to take up the free NHS flu jab if eligible. Keeping up to date with vaccinations can prevent lost workdays and protect both colleagues and customers during the busy winter season.

Royal Mail has announced plans to take on 20,000 temporary staff this winter to help manage the surge in post and parcels during the festive season. The company said the roles will cover parcel hubs, dedicated sorting sites and delivery rounds across the UK, ensuring it can cope with record volumes of online shopping and key retail events such as Black Friday and Cyber Monday.

The seasonal workforce will be spread across 37 mail centres, with 12,000 jobs based in England, 2,000 in Scotland, 600 in Wales and 400 in Northern Ireland. In addition, around 3,000 delivery and collection roles are being created, alongside 2,000 temporary driver positions. Parcelforce Worldwide is also expanding its seasonal recruitment drive, taking on more drivers and indoor staff to meet growing demand.

To support the increase in parcels, Royal Mail has opened four large temporary sort centres in Milton Keynes, Northampton, Daventry and Atherstone, Warwickshire. Together, they provide more than 118,000 square metres (1.27 million square feet) of extra capacity. Two dedicated parcel hubs will also be central to handling the Christmas workload.

Jamie Stephenson, the company’s interim chief operating officer, said the festive period required months of preparation: “It is the busiest time of year for us, and we work tirelessly behind the scenes to make sure everything runs smoothly.”

Amazon has unveiled plans to invest more than US$1 billion (around £740 million) to enhance pay and reduce health care expenses for its US fulfilment centre and transport employees. The company says the move is designed to reward staff and improve retention at a time of high competition for workers.

From 2025, the average base wage for these positions will increase to over $23 (about £17) an hour. Once benefits are included, Amazon estimates that average overall compensation will top $30 (approximately £22) an hour. The company also intends to lower health care costs by introducing a new package where weekly contributions for entry-level plans fall to just $5 (£3.72), alongside $5 (£3.72) co-pays for routine services.

Amazon is also revising its step plan, meaning that tenure-based pay rises will become more substantial as employees progress through their careers. The firm says this approach will not only reward loyalty but also provide staff with clearer opportunities for advancement across its operations network.

The tech giant argues that this investment reflects its commitment to creating a more stable and motivated workforce. By focusing on better wages, affordable health care, and stronger career progression, Amazon hopes to build resilience within its logistics network and ensure it is better prepared to meet peak seasonal demand.

Haulage firms have been warned not to underestimate the impact of Import Control System 2 (ICS2) Phase 3, even though many EU states have chosen to push back its introduction. The staggered rollout has created confusion across the road freight sector, with operators unclear on which rules apply and when. Industry experts say this fragmented approach has left many hauliers exposed and unready for the upcoming compliance demands.

ICS2, which began its phased launch in 2021, is the EU’s updated cargo information system designed to tighten security for goods entering the EU, Norway, and Switzerland. The system requires earlier submission of detailed shipment data, enabling more robust risk checks and greater supply chain transparency. While the delays have bought extra time for some operators, firms are being told to act now by upgrading IT systems, revising shipping processes, and ensuring staff training is in place.

Failure to comply with ICS2 could lead to serious consequences, including fines, shipment refusals, and delays at border crossings. Logistics providers are urging businesses to take a proactive stance, offering tailored support to adapt customs workflows and integrate the necessary digital tools to minimise disruption.

To help operators navigate the transition, new technology solutions have been developed, including digital platforms capable of generating Entry Summary Declarations automatically and AI-driven tools to simplify error handling. With more than six decades of industry expertise, providers emphasise that preparation is the key to avoiding costly setbacks as Europe moves towards full ICS2 enforcement.

An independent truck stop near one of the UK’s busiest ports has highlighted the urgent need for better welfare facilities for lorry drivers. The site provides meals, health checks, and space for dozens of vehicles, but its owners argue that more must be done nationwide to tackle loneliness, poor conditions, and low morale across the industry. They stress that truck stops should focus not only on physical health but also on dignity and mental resilience for those keeping the country supplied.

Many drivers say proper facilities are hard to come by, particularly for women, with rest areas often offering little more than basic toilets and parking. Clean showers, healthy food, and safe places to rest remain scarce, leaving drivers dehydrated and exhausted. The Felixstowe stop, however, has been praised as an exception — providing home-cooked meals, laundry services, and secure overnight parking.

The decline of truck stops in recent years, often sold off for housing or warehouses, has worsened conditions for drivers who are increasingly forced to spend nights in laybys without security. At Felixstowe, free water and healthier menu options are offered as part of efforts to improve driver wellbeing and reduce fatigue.

For many on the road, the lack of contact and proper amenities makes the job isolating. Staff at the stop say offering a safe place, a smile, and even simple conversation can make a meaningful difference, turning a lonely profession into something a little more human.

As the retail calendar edges towards its busiest spell, warehouse operations are bracing for the sharp spike in activity brought by Black Friday, Cyber Monday and Christmas. These trading peaks place extraordinary pressure on logistics networks, pushing automated systems well beyond their everyday limits. For operations managers, the key question is whether their technology can cope – and if not, how best to strengthen it.

The cost of failure at these moments is high. Any breakdown in automation, or the need to revert to manual processes, slows order fulfilment just when speed is most critical. This not only disrupts revenue flow but also damages customer confidence. Resilient automation is therefore no longer optional; it is an operational necessity. A system engineered to withstand fluctuating demand provides predictable capacity, reduces costly emergency fixes and supports long-term business growth.

Designing with variability in mind is essential. Systems should be stress-tested at higher-than-normal volumes during design stages, with modular layouts allowing sections to run independently if issues arise. Intelligent load management helps avoid local bottlenecks, while redundancy across physical routes, control systems and communication networks reduces single points of failure. These design features create the foundation for stability under pressure.

Preparation, however, is just as important as design. Warehouses should simulate stress conditions well ahead of peak season, testing throughput, backup systems, data loads and recovery from outages. By validating systems under such scenarios, operators can be confident in their ability to maintain performance during critical periods. In a volatile supply chain environment, automation resilience has become a defining competitive advantage.

Selby MP Keir Mather has been appointed Parliamentary Under-Secretary of State at the Department for Transport (DfT) in Prime Minister Keir Starmer’s latest cabinet reshuffle, following the exit of former deputy leader Angela Rayner. In his new ministerial role, Mather will oversee freight and border policy, as well as work on decarbonisation and the rollout of electric vehicles.

Mather first entered Parliament in 2023 after winning the Selby and Ainsty by-election, becoming the youngest MP at just 25. He later secured the newly defined Selby seat at the 2024 General Election with a strong majority. Sharing his reaction online, Mather described his appointment as a “privilege,” adding that ensuring the country keeps moving was vital to supporting economic growth.

Transport Secretary Heidi Alexander welcomed him to the team, saying she was “delighted” to have him join the department. His appointment strengthens the DfT as it faces ongoing challenges around sustainable transport, supply chains, and the shift to low-emission vehicles.

Industry leaders have also responded positively. Richard Smith, Managing Director of the Road Haulage Association (RHA), congratulated Mather on his appointment and noted the importance of his new brief to the freight sector. He also highlighted the value of maintaining strong working ties with other DfT ministers, including Simon Lightwood MP and Lilian Greenwood, who will take responsibility for local transport.