Warehousing Sector Is All Taxed-Out UKWA Warns Ahead Of Budget

Further tax rises for the warehousing sector would have damaging consequences, the UK Warehousing Association (UKWA) has warned the Chancellor in its submission to the Autumn Budget.

After increases to the minimum wage and employers’ national insurance, alongside expected hikes in property taxes and energy bills, companies that provide the essential storage and distribution services which keep the economy ticking are under ‘unsustainable pressure’, the UKWA said.

The trade body, which represents over 1,000 companies, ranging from multinational logistics groups to family firms, said that its members were being squeezed from all directions. In part, this was due to government attempts to protect other sectors, such as business rate cuts for high street shops and pubs, or energy bill subsidies for heavy industry.

Warehousing has to occupy large premises to operate efficiently, the UKWA said, and is a major employment sector, totalling around 650,000 people. This means it has borne the brunt of tax rises in the Government’s first year.

In its recommendations to the Chancellor for the November Budget, the trade body urged her to introduce a generous package of transitional relief for the coming business rate rises. The UKWA also called for a tax break to reduce the cost of installing rooftop solar panels, which could help warehouses reduce their energy bills and become more sustainable.

Clare Bottle, CEO of the UKWA, said: “We recognise the Chancellor faces tough choices on the public finances, but our members are more than pulling their weight. Steep increases in employment costs and business rates mean that the warehousing sector is all taxed-out.”

“Whether it’s taxes or energy costs, everything is going up. Meanwhile, the message I get from small and medium-sized companies in particular is that the market is difficult out there. Customers are nervous and sitting on their hands. Overall, our members are under unsustainable pressure."

“The UK’s logistics system – of which warehouses are an essential part – is critical to the Government achieving its goals. Increasing housebuilding, boosting renewable energy and strengthening our national defence all rely heavily on the supply of physical goods."

"Ministers have made welcome statements about the importance of logistics in the last year, the Budget is the moment to back them up with action.”