Source · Select Committees · Transport Committee
Recommendation 19
19
The Supply Chain Levy should be applied to those at the production and sales end...
Conclusion
The Supply Chain Levy should be applied to those at the production and sales end of the supply chain, such as large retailers, oil companies and online service giants. These organisations currently make large profits which do not trickle further down the supply chain to the companies which transport the goods. As a result, hauliers and ferry operators are posting operating losses and therefore cannot afford to increase the pay and welfare standards of those they employ. The Supply Chain Levy would require the parts of the supply chain where margins are greatest to deliver improved standards and the resilience to the supply chain which they themselves require to ensure their shelves, warehouses and petrol pumps are full. (Paragraph 59) Recruitment
Government Response
Acknowledged
HM Government
Acknowledged
The Government notes this recommendation. Regarding the suggested levy, taxes are a matter for HM Treasury and all taxes are kept under review. The Government has already taken extensive action to improve standards and resilience in the supply chain, most notably the 33 measures that have been implemented to tackle the HGV driver shortage. Current international and domestic economic circumstances mean businesses up and down supply chains are facing a unique set of challenges. We acknowledge the Committee’s particular concern about the ability of smaller enterprises to remain competitive. Government will continue to work with industry across the length and breadth of logistics sector to ensure we are well positioned to respond to any further supply chain pressures in a cohesive and decisive manner.