UK Chancellor John Healey has confirmed the proposed warehouse tax has been scrapped in this year’s Autumn Budget, with the 5p-per-litre fuel duty cut also extended to 1 July 2027.
This follows campaigning by the FWD on behalf of its members to drop plans for further business rates increases on large warehouses. “We also welcome the extension of the fuel duty freeze. These are two important steps towards easing the cost pressures facing wholesalers,” said James Bielby, chief executive, FWD.
However, it wasn’t all good news for the channel in the Budget, with continued pressures from employment costs and energy prices, with a further increase in the National Living Wage expected to add to the cost of running a operation.
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“We’ll keep making the case to Government for a more resilient wholesale sector that creates jobs and keeps food affordable,” said Bielby. “We are delighted the Chancellor has backed our campaign not to introduce a warehouse tax and extended the fuel duty freeze. These decisions provide welcome relief for wholesalers and will help keep food affordable. Now, more must be done to tackle the cost of living and support our sector to deliver good growth in every postcode.”
Elsewhere, wholesale customers, such as convenience stores, pubs, cafés and restaurants, will benefit from changes to business rates from April 2027. In addition to this, tariffs on more than 100 food products are being suspended for two years, potentially creating opportunities for wholesalers to improve margins.
