Discussing the challenging road ahead: David Brown Jnr meets with Bank of England

Last week, I had the privilege of meeting with Andrew Bailey, the Governor of the Bank of England, to discuss the significant challenges facing the road transport sector over the next five years. I was joined by Richard Smith, Managing Director of the Road Haulage Association (RHA), Alex Knowles, Managing Director at Knowles Logistics, and Michael Cundy, Managing Director of Suttons Tankers.

We had open and honest discussions about the haulage industry, focusing on the challenges faced by both individual operators and the sector as a whole. These conversations highlighted the significant role our industry plays in supporting the UK economy and its impact on the cost of goods and services nationwide.

Andrew was not only receptive to our concerns but also genuinely surprised by some of the headwinds we encounter, particularly the rising costs and market pressures that affect our day-to-day operations.

As many of my colleagues know, running a transport company is becoming increasingly expensive. In recent years, record numbers of hauliers have, unfortunately, been forced out of business due to high operating costs and reduced volumes. These issues are compounded by contracts that fail to keep pace with escalating fuel and energy prices and the competitive disadvantages we face within the European market.

We emphasised the urgent need for government intervention to reduce the pressure on our sector. Fuel costs alone account for a significant portion of operating expenses (around 31-36% for the average fleet). With the added burden of rising vehicle and maintenance costs, any potential increase in fuel duty would be a devastating blow to many businesses.

Several measures were also proposed that the government could adopt to support our industry and deliver wider economic benefits. One key recommendation was the introduction of an essential user rebate, reducing the cost of fuel for commercial vehicles by 15 pence per litre. This would provide much-needed relief to hauliers and bring UK fuel duty levels more in line with those across Europe.

As a member of the RHA and a business leader who witnesses these industry struggles first-hand, I was grateful for the opportunity to contribute to this discussion and ensure our sector's concerns are considered in future government decision-making. Something that is essential if we are to secure a stable future for the UK’s road transport industry.

David Brown Jnr
Managing Director, Browns Distribution