First Report - Road freight supply chain

Select Committee

Transport Committee HC 162 1 June 2022

Report Status Government responded

Conclusions & Recommendations 25 items (14 recs)

Source View on Parliament website

Government Response (AI assessment · 24 of 25 classified)

Accepted 9

Accepted in Part 1

Acknowledged 11

Deferred 2

Not Addressed 1

Recommendations

14 results

3 Acknowledged

Para 22

We want to see greater ambition, which means the introduction of a coherent strategic plan.

Recommendation

We want to see greater ambition, which means the introduction of a coherent strategic plan. In the five years since our predecessor Committee examined this issue, the sector has failed to solve its own problems. Little to no improvement has … Read more

Government Response Summary

The government welcomes the Committee's steer on the central role of industry, saying key issues are for industry to lead, but they will continue to work with industry and consider the need for short-term mitigations.

Department for Transport

4 Accepted

One step the Government should take straightaway, as part of its review of the Driver...

Recommendation

One step the Government should take straightaway, as part of its review of the Driver Certificate of Professional Competence, is to ensure the logistics sector funds its own driver training, as is common practice in the bus and coach sector. … Read more

Government Response Summary

The government notes this recommendation has already been partially addressed as part of the '33 measures' interventions. A review into the mandatory Driver Certificate of Professional Competence (DCPC) training is underway to ensure it does not act as a barrier for drivers.

Department for Transport

6 Acknowledged

Para 29

The Government, in consultation with the sector, should devise a binding code of conduct setting...

Recommendation

The Government, in consultation with the sector, should devise a binding code of conduct setting minimum standards for employers’ and other businesses’ treatment of HGV drivers.

Government Response Summary

The government notes the need for improved standards for HGV drivers, but believes industry must lead the implementation of working practices. Government supports recent increases to remuneration and is providing £345,000 to support a recruitment campaign led by industry sponsorship.

Department for Transport

8 Accepted in Part

Para 36

The Government should use the findings of its current lorry parking survey to set regional...

Recommendation

The Government should use the findings of its current lorry parking survey to set regional targets for building additional parking capacity. It should set up a joint Government-industry taskforce to ensure these targets are met.

Government Response Summary

The government will use its lorry parking survey results to inform a £32.5M matched-funding grant scheme for facility improvements and a £20M investment by National Highways. However, they do not intend to set up a joint Government-industry taskforce.

Department for Transport

10 Deferred

Para 38

The Government must build on its commitment in the Queen’s Speech to reform the existing...

Recommendation

The Government must build on its commitment in the Queen’s Speech to reform the existing planning framework and ensure that decisions for new driver facilities are not left to individual planning authorities. The Government must reform national planning policy to … Read more

Government Response Summary

The government is prioritising the development of a call for evidence to understand the practical issues of planning for freight and logistics infrastructure. The program of changes to the planning system will include options to ensure sufficient land is allocated to service the needs of freight and logistics.

Department for Transport

12 Acknowledged

Para 43

The Government should set a minimum standard for driver facilities.

Recommendation

The Government should set a minimum standard for driver facilities. This should cover: Ȥ Security to protect drivers and their vehicles; Ȥ Availability and cleanliness of toilet and shower facilities; Ȥ Food options, including healthy choices; and Ȥ Sufficient provision … Read more

Government Response Summary

The Government is considering what role standards have to play in driving improvements to driver facilities and encouraging providers to properly maintain and improve their business offerings, including on the areas raised by the Committee.

Department for Transport

13 Acknowledged

Para 45

The Government owns the freehold of a number of motorway service areas.

Recommendation

The Government owns the freehold of a number of motorway service areas. Delays in negotiating leasehold extensions with operators are holding up necessary investments in some of these facilities. While the Government must, of course, ensure it receives value for … Read more

Government Response Summary

The government is assessing future ownership options for motorway service areas (MSA) freeholds and investing £52.5 million in roadside facility improvements, but makes no firm commitments regarding leasehold negotiations.

Department for Transport

14 Acknowledged

Para 46

The Department should inject more urgency and immediately escalate and prioritise negotiations to agree new...

Recommendation

The Department should inject more urgency and immediately escalate and prioritise negotiations to agree new leases with motorway service operators operating on Government-owned land.

Government Response Summary

The government is assessing future ownership options for government-owned MSA land to maximize taxpayer value and ensure responsiveness to future road users, and investing £52.5 million in roadside facility improvements including at MSAs.

Department for Transport

17 Acknowledged

Para 57

In other policy areas, where the Government has run out of patience with inertia, it...

Recommendation

In other policy areas, where the Government has run out of patience with inertia, it has threatened industry with actions which would be taken if the industry does not find its own solution. Similar examples can be found in measures … Read more

Government Response Summary

The government notes the recommendation but highlights its existing 33 interventions to address the HGV driver shortage and says it will continue to engage with industry stakeholders.

Department for Transport

18 Accepted

Para 58

The Government should give the logistics sector two years to deliver sufficient drivers and high-quality...

Recommendation

The Government should give the logistics sector two years to deliver sufficient drivers and high-quality parking facilities. If industry does not deliver, the Government should implement the levy charging mechanism and cause the industry to pay sufficient sums for the … Read more

Government Response Summary

The Government has already put in place 33 interventions including skills bootcamps, using Brexit freedoms to allow regular drivers to tow a trailer, and investing more than £52 million to improve lorry parking and welfare facilities for drivers.

Department for Transport

19 Not Addressed

The Supply Chain Levy should be applied to those at the production and sales end...

Recommendation

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 … Read more

Government Response Summary

The government notes the recommendation regarding a supply chain levy, stating that taxes are a matter for HM Treasury and are kept under review. They mention actions taken to improve standards and resilience, but do not address the levy itself.

Department for Transport

20 Acknowledged

The average age of HGV drivers continues to increase.

Recommendation

The average age of HGV drivers continues to increase. Although the sector is perhaps more open to female drivers than in the past, it has largely failed to attract a diverse workforce. It is disappointing how little progress has been … Read more

Government Response Summary

The government recognizes that the lack of diversity continues to present a barrier to solving labor shortages and supports the industry-led Generation Logistics campaign highlighting sector opportunities to under-represented groups.

Department for Transport

22 Accepted

We welcome the introduction of skills bootcamps as a faster, more flexible route to becoming...

Recommendation

We welcome the introduction of skills bootcamps as a faster, more flexible route to becoming an HGV driver. The Government should make the provision of skills bootcamps for HGV drivers permanent, with part of the scheme targeted at underrepresented groups … Read more

Government Response Summary

The government agrees that bootcamps and apprenticeships have started to make an impact and will continue to monitor their progress and effectiveness, and has developed a wide range of other training routes to become an HGV driver and make financial support for training available.

Department for Transport

24 Accepted

Para 79

The Government, alongside the sector, must work together to set targets and deadlines to switch...

Recommendation

The Government, alongside the sector, must work together to set targets and deadlines to switch more freight from road to rail and water. This must happen alongside steps to decarbonise road freight itself.

Government Response Summary

The government supports modal shift of freight from road to rail and water, committing to a rail freight growth target, creating a Strategic Freight Unit, and providing £20m per year through mode shift freight grant schemes.

Department for Transport

Conclusions (11) Observations and findings — click to expand

1 Conclusion Accepted

Para 9

A lack of HGV drivers has concerned Government and industry for more than a decade. Too few people want to work in the sector, and the retention rate for those who become drivers is low. The covid-19 pandemic exacerbated those trends, turning a chronic problem into an acute one. The …

Government Response Summary

The government recognises the difficulties caused by HGV driver shortages, noting that the recommendation has already been partially addressed as part of the '33 measures' interventions.

2 Conclusion Acknowledged

Para 21

In the past, the Department for Transport argued that the haulage sector itself was primarily responsible for addressing driver recruitment and retention. The unprecedented nature of the recent crisis led the Government to take a different tack. That change was welcome. However, the Government’s piecemeal approach has involved a range …

Government Response Summary

The government acknowledges the central role of industry in ensuring a resilient workforce in the road freight sector and will continue to work with industry to make improvements for the long term and consider the need for short term mitigations.

5 Conclusion Acknowledged

Para 28

Driving an HGV is a challenging job. It is physically demanding and involves lengthy, anti-social hours. The way in which drivers are treated and the conditions in which they are required to work can exacerbate those pressures. Unless these conditions improve, retention rates will remain low. Post-pandemic pay increases can …

Government Response Summary

The government notes the need for improved standards for HGV drivers, stating that industry must lead the implementation of working practices. They are investing £52.5M in roadside facilities and working with the sector on standards for HGV parking and facilities.

7 Conclusion Accepted

Overnight parking facilities for HGV drivers are insufficient, especially on key road freight routes. This lack of capacity is not new; the Department’s previous lorry parking survey identified it five years ago. (Paragraph 35) 32 Road freight supply chain

Government Response Summary

The government is gathering evidence through a 'National Lorry Parking Survey' to understand needed improvements, which will be published in early 2023. A £32.5M matched-funding grant will fund improvements to HGV driver facilities, and National Highways will invest £20m in improving roadside facilities on the strategic road network.

9 Conclusion Deferred

Para 37

Without clear direction from the Government’s planning legislation and guidance, building desperately-needed new driver’s facilities, and even upgrading old ones, is a tortuous process. Local authorities in Kent, and other parts of the country where supply chain movements are prominent, face an impossible task and cannot be expected to elect …

Government Response Summary

The government is prioritising the development of a call for evidence to understand the practical issues of planning for freight and logistics infrastructure. The program of changes to the planning system will include options to ensure sufficient land is allocated to service the needs of freight and logistics.

11 Conclusion Acknowledged

Para 42

HGV drivers need safe and secure places to stop, to rest and to recuperate. Drivers told us that too often the facilities available to them were unfit for purpose. Rest facilities must be improved if more drivers are to remain in the sector.

Government Response Summary

The Government is considering what role standards have to play in driving improvements to driver facilities and encouraging providers to properly maintain and improve their business offerings, including on the areas raised by the Committee.

15 Conclusion Accepted

Para 51

HGV drivers should not park overnight in laybys or other unsuitable locations. It leaves drivers vulnerable to crime and is not conducive to rest and recuperation. Yet some drivers are forced to do this as managed facilities are full, while others choose to, either to save money or because the …

Government Response Summary

The government will launch a £32.5M matched-funding grant scheme for operators to improve HGV driver facilities and National Highways will invest £20m in roadside facility improvements. They are also gathering evidence via a 'National Lorry Parking Survey' to understand needed improvements.

16 Conclusion Accepted

Para 56

The fragmented nature of the road haulage sector makes it difficult for logistics operators to act in a concerted fashion to improve the conditions for HGV drivers. The actions of a few large companies, such as the major supermarket chains, exacerbates this. These companies use their market power to drive …

Government Response Summary

The Government notes the need for improved standards and safety for HGV drivers and supports improvements to working practices and facilities, but industry must lead the implementation of changes. Government is supporting a campaign to increase the number of people considering logistics as a career, with DfT providing £345,000 of funding.

21 Conclusion Accepted

Para 69

There are various routes to becoming an HGV driver. The sector does not find it difficult to recruit new entrants. It has struggled to make apprenticeships work as an entry point, because the role does not fit within the parameters set by the Department for Education’s various arm’s-length bodies such …

Government Response Summary

The government states they have developed training routes including apprenticeships, with 2,599 lorry driver apprentices in training.

23 Conclusion Acknowledged

Para 78

We welcome the steps the Government have taken to get more freight off our roads and on to our railways. We hope this is a process the establishment of Great British Railways will accelerate. The current model which sees freight moved from one end of the country to the other …

Government Response Summary

The Government agrees that more freight should be taken from the road and on to rail and water and is exploring the potential to increase rail freight capacity on the rail network to help reduce carbon emissions from the freight sector.

25 Conclusion

The introduction of the EU’s new Entry/Exit system later in 2022 threatens to cause further confusion, disruption, and delay at the UK’s border, particularly at the Port of Dover. The Minister stressed that other Departments were primarily responsible for the management of the UK’s borders. We recognise the division of …