With the UK economy predicted to be smaller than previously thought and subsequent tax revenues set to be less than the Chancellor banked on, many observers are forecasting that George Osbourne could raise fuel duty in Wednesday’s budget. Is the Road Haulage industry performing well enough to absorb these increase or are the scare stories of failed operators sent to the wall by rising costs about to come true?
Latest research from market analysts Plimsoll says both scenarios are likely. On the one hand, the UK Haulage market is one of the UK economy’s most improved markets. A majority of operators improved pre-tax profit margins last year, average margins are double what they were 5 years ago and half of companies were rated as STRONG using Plimsoll’s renowned financial health rating.
However, the new Plimsoll Analysis, individually assessing the UK’s top 1000 Road Hauliers to reveal their overall financial health, value and future prospects, also shows:
- • 207 companies are already in financial difficulty and are most likely to fail if costs rise further
- • 183 companies are losing money and could be pushed into further difficulty by an increase in fuel costs
Some industry experts are warning that increasing fuel duty in line with RPI would add around £500 per truck per year. The new Plimsoll Analysis will show you the UK’s leading Hauliers able to absorb such costs increases, who would struggle to cope and which companies could be tipped over the edge.
The Plimsoll Analysis giving an instant opinion on the financial health of the UK’s 1000 leading Road Haulier, is available now from just £350 (+VAT). Click here for more details.
Previous Article