Transport is one of three sectors singled out as being set for further economic trouble by restructuring experts.
The latest figures from the Insolvency Service are a sorry state of affairs. Although the number of businesses entering insolvency has dropped, figures from the report reveal that certain sectors are still struggling under unrelenting pressures, including transport. According to the report, the number of businesses, transport included, entering administration has soared by 50 percent quarter on quarter.
We rely on hauliers, vans and HGVs to deliver our daily necessities – the transport sector is the backbone of Britain’s economy and we simply cannot allow it to fail. Our industry accounts for a major part of the UK’s financial market particularly in terms of private spending and employment. Essentially, where would the country be without us?
There also are wider implications of a weakness in the transport sector in terms of unemployment. If hauliers continue to be made redundant, there would be a knock on effect on public spending causing a ripple effect throughout the economy.
It’s easy for people to forget about other areas of the economy when high profile administrations dominate the news, but remember, haulage businesses will be just as affected by the demise of retailers such as HMV and Comet.
Primarily, the transport sector needs more support from the government to help rectify this situation. For instance, reduction in fuel duty would be a significant step forward and keep our economy afloat.
So, Cameron, Clegg and Osborne, how will you help?