As insurance brokers to hauliers, we deal daily with the haulage sector from single operators and smaller businesses to larger haulage firms. Not for the first time we are feeling the pain of our commercial fleet customers as they manage the price and availability of fuel. Not all of them survive these increased cost pressures. Rising insolvencies is a point that is regularly emphasised by the Road Haulage Association (RHA).
Fuel accounts for 30–40% of haulage operating costs, and even small price increases can wipe out margins. With duty rises scheduled from late 2026 and wider cost pressures (wages, insurance, depot rates) building, the transport sector needs short‑term stabilisation to avoid business failures and supply‑chain disruption.
Anthony Jones Insurance Brokers Call For Government Intervention To Help Our Haulage Insurance Buyers
Reducing insurance premium costs is a realistic option for Government intervention, and it could provide meaningful short‑term relief for the haulage sector. Insurance is the second‑largest operating cost after fuel, and premiums have been rising due to higher repair costs, claims inflation, and tighter underwriting. Government action here would not only cut costs but also stabilise cash flow for operators who are already under pressure from fuel volatility.
A Government‑led reduction in insurance premium costs, especially through IPT reform, would provide immediate, predictable, and meaningful relief for haulage operators. It complements fuel‑related measures by reducing a major fixed cost that operators cannot easily control.
The Unfair Tax – Insurance Premium Tax
We wrote only a few days ago following the Chancellors Spring Statement on the “unfair” Insurance Premium Tax (IPT) and how a reduction in this tax would be immediate relief for hard-pressed hauliers.
What Could The Government Do To Help?: Reduce Insurance Premium Tax (IPT)
IPT is currently 12% and added on top of every commercial insurance premium. Cutting or freezing IPT would have an immediate, measurable impact on haulage operators’ costs.
What Would Be The Benefit Of Reducing IPT For Haulage Businesses?
- A 2–3% reduction would save thousands per fleet annually
- Provide a sector-specific rebate for the haulage sector, particularly for smaller operators most exposed to fuel price volatility
- Keep the 5p fuel duty cut in place until August 2026 to avoid a sharp rise in pump prices that would hit small operators hardest. This cut prevents a 5p-per-litre jump that would otherwise have taken effect in March 2026 .
- Freeze HGV Vehicle Excise Duty and the HGV Levy
- Government-backed fuel purchasing schemes could let small hauliers access lower wholesale prices normally reserved for large fleets.
We may of course be overly optimistic about changes that could be made but we would be remiss not to support our commitment to the haulage sector.
