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Industry News • 4 min read

The 2025 UK Budget: What it means for haulage

Created: 10/12/2025

Updated: 10/12/2025

The 2025 UK Budget arrives at a difficult moment for the road transport sector. Operators are working against rising wages and operating costs, tight margins, ageing infrastructure and ongoing pressures around recruitment. At the same time, the shift towards cleaner mobility is accelerating, creating new expectations and increasing the need for long-term investment.

The following article outlines what the Budget means for infrastructure, investment, workforce costs and the wider operating environment for haulage.

Infrastructure investments

For many years, fleets have been affected by deteriorating roads, weight restrictions on ageing bridges and the growing unpredictability of journey times. Government and industry data makes this clear. More than one in every ten miles of network in England and Wales is likely to require maintenance within the next year, according to Road Condition Index reporting, and the backlogs for resurfacing work continue to rise. These issues lead to vehicle damage, driver fatigue, higher insurance costs and disrupted schedules. They also place additional pressure on operators already dealing with narrow margins.

The new Budget acknowledges these concerns. One positive step is the substantial funding for strategic national projects, including almost £900 million allocated to the Lower Thames Crossing, which should reduce congestion, provide more reliable journey times and a safer driving environment for HGVs.

Local authorities will also receive a share of £2 billion specifically to improve roads and address the growing number of potholes. This could make a noticeable difference for fleets. Local roads carry the majority of domestic freight and serve as the first and last mile of nearly every delivery. Improving them should reduce wear and tear on vehicles as well as operational strain.

These commitments will not fix decades of underinvestment immediately, but they represent an important shift towards a road network that is more resilient and better suited to the realities of modern logistics.

Developing the workforce through apprenticeships

The Budget also places more focus on skills. Fully funded apprenticeships for under-25s working in small and medium-sized businesses could help attract new entrants into a profession that urgently needs them.

The driver shortage is well documented. The UK must recruit around 200,000 new lorry drivers over the next five years in order to stabilise supply chains, and across Europe the average age of professional drivers continues to climb. Only a small proportion of drivers are under 25, and training costs have been a barrier for many younger candidates.

Providing funded apprenticeships makes logistics more accessible at a critical time. It also supports smaller operators, who often struggle to invest in training despite needing to expand their teams.

Incentives for modernisation

The Budget introduces further support for investment, particularly around fleet renewal. Operators installing charging infrastructure can take advantage of a 100% first-year allowance until March 2027. This will help offset the upfront cost of electric HGVs and depot charging equipment.

From January 2026, a new 40% first-year allowance will be available on many main-rate assets, including trucks – particularly useful where full expensing or the Annual Investment Allowance don’t apply, such as some leased fleets and unincorporated operators.

Pressures on operating costs

While the Autumn Budget contains several positive measures, operators will also need to plan for increasing costs. Fuel duty will rise in stages between the end of August 2026 and March 2027. Fuel is already one of the largest expenses for operators, and the planned rises are likely to increase the emphasis on fuel efficiency, telematics, consolidated routing and fleet renewal.

Vehicle Excise Duty (Road Tax) will be uprated in line with inflation from April 2026, including for HGVs. From April 2028, a new Electric Vehicle Excise Duty (eVED) will also apply a mileage-based charge to battery-electric and plug-in hybrid cars, on top of existing VED. Although eVED initially excludes electric vans and trucks, it signals a longer-term shift toward distance-based taxation that fleets will need to factor into future planning.

The HGV Levy will also return to rising with inflation. Vehicles over twelve tonnes must pay the levy before using A roads or motorways, and the revised rate will add another cost that fleets must factor into forward planning.

Larger, higher‑value properties are also likely to feel more pressure from business rates changes. The Budget confirms permanently lower business rates for retail, hospitality and leisure, funded in part by higher charges on the most expensive commercial premises. These include big warehouses and distribution centres, so operators with large sites can expect proportionately higher bills over time than smaller depots or high‑street locations.

In addition, the Budget introduces several measures that directly affect the financial landscape for operators and the people who run or work within haulage businesses. Labour already represents one of the sector’s highest costs, and these changes will shape payroll planning, staff retention and the personal finances of many owner-operators.

Minimum wage increases mean that employers will face higher staffing costs across warehousing, last-mile logistics and support roles. Many operators have already tackled wage rises in recent years, and this further uplift will add pressure at a time when margins remain narrow. For fleets that rely on overtime, night work or seasonal peaks, the impact will be even more noticeable.

Rising administrative demands

The Budget continues the government’s move toward greater digitalisation of tax and reporting. Compliance expectations will grow over the coming years, with stricter penalties for late VAT and Self Assessment returns and an expanded Making Tax Digital framework from 2027. Mandatory electronic invoicing will follow in 2029.

Parcel carriers and mixed load operators will also be affected by changes to customs duty for low-value imports, which will apply to items worth less than £135 by March 2029 at the latest. While the aim is to even the playing field for UK manufacturers, it is likely to increase administrative pressure on haulage firms.

These changes may eventually improve efficiency, but they will require investment in systems and staff training. Smaller fleets without dedicated administrative teams are likely to feel the adjustment most sharply.

A mixed Budget

Although operators will face higher costs and increased administrative complexity, the 2025 Budget also provides some of the most significant commitments to the road network and skills pipeline seen in recent years.

Taken together, these measures signal a Budget that attempts to balance fiscal constraints with long-term needs. The road ahead will still require careful planning and strategic investment, but there are genuine opportunities to strengthen the sector’s foundations and support a more resilient future for haulage.

SNAP gives fleets practical tools to manage this shifting landscape, from parking access to data that supports compliance and operational decision-making. Sign up to discover how SNAP can help strengthen your fleet’s resilience in the months ahead.

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Monday 03 November 2025 • Industry News

9 WAYS AI DETECTION IS TRANSFORMING THE FLEET INDUSTRY

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Artificial intelligence (AI) has redefined how fleet professionals approach daily operations. Modern technologies let managers measurably improve maintenance, safety and compliance across their vehicles. As regulatory pressures rise, AI-driven insights will be more critical in gaining a decisive edge. Here are nine ways AI detection is transforming the fleet industry. Advanced telematics and machine learning (ML) algorithms help AI detection in fleets by monitoring driver behaviour. These devices analyse real-time patterns and flag risky driving behaviours like speeding and harsh braking. ML models instantly process data from in-vehicle sensors and identify deviations from safe driving norms and company policies.Drivers receive immediate feedback in the vehicle, while fleet managers get detailed reports on trends. The wealth of information helps supervisors personalise coaching sessions and find specific improvement areas. Telematics solutions have been critical to fleets nationwide because through improved behaviour and training programmes. AI algorithms are essential to analysing real-time traffic data, like road closures and weather conditions. Congestion can be significant, especially if your routes pass through London. A 2024 Inrix report said drivers when driving in the capital city. ML models can quickly identify bottlenecks and adverse weather to meet critical delivery times. Fleet managers benefit because their drivers can improve on-time performance. Route optimisation means deliveries are more likely to arrive during scheduled windows. It also enhances driver behaviours by idling less and covering fewer miles. Modern AI technologies rapidly detect roadway closures and unexpected weather changes to minimise disruptions. Accident reporting used to include manual logs and documentation. However, AI can reduce labour needs by automatically detecting and submitting incident reports. From collisions to near misses, these technologies can recognise potential incidents. Sensors gather relevant information at the event’s timing to provide more context. Unusual circumstances like airbag deployment can also be part of the automatic reporting. Once AI detection is complete, the system compiles information into a standardised report. Manual logs can create time-consuming tasks, so AI can automate these processes and free up staff. Fleet managers and insurers receive the report, thus ensuring compliance and accurate communication. Advanced technologies capture relevant data and use consistent formatting, so all parties get the critical details. Unexpected vehicle breakdowns can disrupt schedules and delay deliveries. AI helps fleet managers detect these problems before they become significant issues. From engine temperature to oil pressure, characteristics are monitored in real time. Advanced algorithms identify subtle anomalies and alert operators when a component is nearing failure. While fixed service intervals can be beneficial, AI lets you be more proactive and schedule maintenance precisely. Tire pressure sensors are an excellent example, especially for construction and utility companies. Experts say air compressors than equipment needs to maintain best practises. These sensors continually monitor output and detect gradual drops, flagging early signs of leaks.AI detection in fleets goes beyond studying driver behaviour. Telematics and sensors analyse speed and acceleration patterns to better understand fuel consumption. The systems monitor your vehicles for excessive idling and inefficient routing that increases petrol or diesel usage. AI can tailor recommendations to drivers by offering optimised speed ranges or maintenance needs.Fleet managers benefit by getting aggregated data on fuel consumption and spending. 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Fleet managers benefit from geofencing features, allowing them to set virtual boundaries. If a truck or van exits these zones, AI-powered systems automatically flag the event and notify logistics professionals. The algorithm is intelligent enough to understand anomalies and security protocols. Abnormalities can trigger security measures like remote disabling. AI is a practical, game-changing tool for fleet managers. Advanced analytics and real-time monitoring empower logistics professionals to drive measurable safety and performance improvements. While technologies are developing, the future is here. Your business should be willing to invest in AI-driven solutions to reduce costs and minimise risks. Discover more from .

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Thursday 28 August 2025 • Industry News

ARE FLEETS SHIFTING TO AUTONOMOUS VEHICLE INTEGRATION?

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The buzz around self-driving cars isn’t as loud as it used to be, but it remains a constant noise in fleet managers’ ears. The United Kingdom government has moved autonomous vehicle integration pilot plans to 2026, renewing interest in the technology. Will decision-makers ignore the noise or embrace early adoption?Autonomous vehicle integration involves embedding self-driving technologies like artificial intelligence, light detection and ranging (LiDAR), and high-definition cameras into commercial fleets. On a broader scale, it entails introducing self-driving cars into existing public transportation systems.Driver assistance systems include collision avoidance, automatic speed adjustment, lane-centring, adaptive cruise control and intelligent ride-hailing. Partial and conditional automation leverage more advanced technologies to enable hands-free operation under certain circumstances.Level 4 and 5 automation are top priorities for automakers but challenging to implement in practice because engineers must account for countless edge cases. Even with advanced AI, perfecting parking and preventing collisions can be difficult. What if the pavement markings are barely visible or a child runs into the road? Adoption hinges on the car’s reaction.According to the Centre for Connected & Autonomous Vehicles, transport secretary Heidi Alexander confirmed the U.K. government will accelerate self-driving commercial pilot plans and aim for Spring 2026. The move could and add £42 billion to the U.K. economy by 2035.The country’s new automated vehicle legislation is among the most robust worldwide, laying the groundwork for widespread commercial adoption. Technological maturity is the only remaining hurdle.In an interview with McKinsey & Company, Sascha Meyer — the CEO of German automotive technology company MOIA — said predicting autonomous vehicle integration timelines has been challenging. In 2016, her enterprise MOIA throughout Europe by 2021.Since then, Meyer has realised adoption entails designing an entire ecosystem, not just driving functions. The new timeline sees self-driving cars in European cities by 2030 at the earliest. The engineers at MOIA are designing the prototype to exceed mandated redundancies. This way, they will be ready to operate commercially once the relevant legislation passes.Delivery, taxi, utility, and commercial fleets are seeing an uptick in driver assistance systems and intelligent automation. However, the penetration rate remains relatively low, especially considering how long the technology has existed. What are their plans for autonomy?Increased efficiency is among the main reasons fleet managers are embracing automation. Unlike humans, driverless vans can operate around the clock. With telematics systems, they can optimise driving and minimise idle time to improve fuel efficiency and expedite trips.AI is immune to human error, eliminating harsh braking and distracted driving. It cannot become fatigued and does not have blind spots. These improvements could help reduce road collisions and car accidents, which can mitigate costly workers’ compensation claims and potentially lower insurance costs.Cost savings are another contributing factor. At Level 4 and 5, owners can optimise labour expenses and compensate for driver shortages. Moreover, electric driverless cars with vehicle-to-grid capacity can over 30 years, helping offset the upfront investment.Aside from waiting for driverless technology to mature, fleet owners are delaying adoption due to high upfront costs. 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Thursday 31 July 2025 • Industry News

HOW EUROPE'S HEATWAVE IS AFFECTING MOBILITY: HOW TO STAY AHEAD

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Europe’s roads are baking – and the heat is only rising. Across the continent, July 2025 delivered record-breaking temperatures, infrastructure failures and transport disruption on an unprecedented scale. For fleet operators and professional drivers, the challenge is no longer theoretical. Extreme heat is here and it’s reshaping the mobility landscape in real time.Much has been written about the health impacts and climate signals of this year’s heatwave. But far less attention has been paid to how it’s affecting logistics, freight networks and the people who keep goods moving across borders. This article explores how heatwaves are disrupting Europe’s road transport sector – from melting tarmac and cracked motorways to wildfires, driver safety concerns and delivery delays – and offers practical advice to help fleets stay operational, resilient and one step ahead.According to the , Europe regularly experiences extreme heat, with temperatures well above seasonal norms. In the first week of July 2025, Germany recorded , while Spain and Portugal faced temperatures exceeding 46°C during the month. Europe, as a whole, is warming at roughly .These conditions are not just uncomfortable – they’re operationally disruptive. Research cited by Logistics Business shows that heatwaves are a growing risk factor for freight operations, reducing driver welfare, damaging cargo and delaying deliveries.As a result, temperature-sensitive cargo such as food, pharmaceuticals and electronics are becoming harder to move safely. Operators are seeing rising spoilage rates and late delivery penalties. The situation is especially complex in areas where power grids are stretched by increased cooling demand, reducing cold chain reliability.One of the clearest signs of heat’s toll on mobility came in early July, when parts of Germany’s autobahn network began to crack under the pressure of thermal expansion. Sections of the A1, A9 and A10 motorways, amongst others, were closed for urgent repairs as – a direct consequence of the country’s prolonged heatwave.As ground temperatures rise and vegetation dries out, wildfires are also becoming a regular – and dangerous – feature of European summers. According to Wikipedia’s 2025 European heatwave summary, wildfires have broken out across southern Spain, Germany and Greece, prompting mass evacuations and the temporary closure of major roadways and border crossings.In June 2025, the due to wildfires, while fires closed several in France. These closures don’t just create traffic chaos – they mean that HGVs have to reroute, often through narrow, unsuitable roads that can extend journey times by hours.In addition, smoke reduces visibility for drivers and poses health risks, especially for those spending long hours in-cab with inadequate air filtration. And in many areas, emergency services are stretched, meaning delays in clearing affected roads or managing diversions.The risks to infrastructure are accompanied by risks to people. Professional drivers are particularly vulnerable to heat stress, dehydration and fatigue. SNAP’s for drivers outlines the dangers of overheating cabs, the strain of long hours in high temperatures, and the importance of cooling systems and rest.Many roadside facilities in southern and eastern Europe remain poorly equipped to support driver wellbeing during heatwaves. Air-conditioned rest stops, shaded parking and reliable water access are not guaranteed – making SNAP’s more important than ever.“This summer’s heatwave is a wake-up call,” says Raquel Martinez, European Sales Manager at SNAP. “Europe’s transport systems were designed for a cooler climate. But we’re not going back. Fleets that adapt now – with the right tools, the right rest strategies, and the right technology – will be the ones that thrive.”In response to the heat, several countries have introduced or extended heat-triggered truck bans. As , Bulgaria and Hungary enforced daytime HGV restrictions when temperatures soared in July 2025. Restrictions also applied to heavy vehicles on certain vulnerable roads during specified periods. In addition, national holiday-related truck bans in Germany, France, Poland and Italy are compounding summer congestion. Full details can be found at Trafficban.com, which lists regional and time-based restrictions across the continent.For drivers and planners, these bans create a patchwork of compliance zones and timing limitations that require careful navigation and up-to-date planning tools.With the increasing risks posed by extreme heat, insurers are starting to reassess their exposure. That’s likely to affect premiums across the board. Goods-in-transit cover is under pressure, particularly for temperature-sensitive loads, with more claims arising from spoilage and missed delivery deadlines. Vehicle insurance costs may also rise as claims for heat-related breakdowns and accidents increase. Meanwhile, there’s growing scrutiny around employers’ liability, especially if drivers or staff suffer heat-related health issues due to inadequate welfare provisions. Together, these trends could mean higher premiums and tougher renewal conversations for operators without clear resilience plans in place.At SNAP, we believe the key to navigating Europe’s heatwaves lies in preparation, planning and proactive welfare management. Use real-time weather data to help drivers avoid high-risk routes. Stock vehicles with water, shade equipment and emergency cooling kits. Stay informed of changing truck bans across borders using verified sources like Trafficban.com. Encourage drivers to use apps like to locate well-equipped, air-conditioned facilities across Europe. Pay extra attention to tyres, cooling systems and battery performance during maintenance – especially for electric or hybrid vehicles. Ensure policies account for climate-related delays, cargo spoilage and fire damage.Check out our or download the today. With thousands of trusted partners across Europe, it’s your shortcut to safer stops – whatever the temperature.