What Does The New Budget Mean For Logistics?

On Friday the Chancellor released a new budget also known as a “growth plan’, which included topics of cooperation tax, energy costs and stamp duty cuts. But what does the new budget mean for logistics?

There are two main points of the plan that will have direct effects on the logistics industry:

  • IR35 Reform Reversal
  • Accelerated Infrastructure

IR35 Reforms Reversed

What does the new budget mean for Logistics?

Kwasi Kwarteng caught most off guard when he promised to repeal changes to off-payroll working laws that only came into force last year.

Announced on Friday as part of the Chancellor’s plan for growth, the move is designed to give a shot in the arm to the UK’s ailing labour market.

It means from April 2023, the responsibility for deciding employment type will return to contractors themselves.

Changes to the IR35 rule were aimed at stopping employees from registering as freelancers in order to pay less tax.

After the reforms went live in April 2021, with a year’s delay due to Covid, businesses were responsible for determining employment status, with heavy fines for those that got it wrong.

But they were criticised for being overly complex, and studies found many firms had stopped using contractors as a result.

Dave Chaplin, chief executive of tax compliance firm IR35 Shield, says freelancers and companies will be toasting the decision to remove the “onerous” reforms.

Accelerated Infrastructure Plans

To further grow the economy, the Chancellor announced plans to accelerate new roads, rail and energy infrastructure. In 2021 it took 65 per cent longer to get consent for major infrastructure projects than in 2012.

The new legislation will cut barriers and restrictions, making it quicker to plan and build new roads. This will speed up the deployment of energy infrastructure like offshore wind farms and streamlining environmental assessments and regulations.

What does the new budget mean for Logistics? Find out more here.

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