The increase in these trucks on the road will deliver a triple-pronged benefit, according to the UK Government.

First, by helping the country deliver on its net zero commitments, then by creating more jobs both in innovation and in transport, and finally, the move is expected to prevent potential price hikes in supermarkets. 

The £200 million investment from the UK government as part of a broader effort to support the country’s freight sector. The funding will also establish around 57 new refuelling and electric charging sites to assist the hauling industry reduce carbon emissions. 

As it stands, heavy goods vehicles (HGV) stand at roughly 20% of the UK’s transport emissions. According to a report by Statistica, 144 million light commercial vehicles would produce half the carbon emissions of 27 million heavy duty trucks. 

“The £200 million commitment ministers are putting into this demonstrator significantly helps to de-risk the transition to net zero,” said Richard Smith, managing director of the Road Haulage Association.

On top of delivering on sustainability goals by reducing emissions, the funding will also benefit grocery companies like Sainsbury’s and Marks & Spencer, by lowering the volatility of delivery costs caused by the fluctuating petrol prices. This is expected to prevent price hikes in supermarkets, according to the government. 

To further promote innovation in freight and logistics, an additional £2.4m has been made available through the second round of the Freight Innovation Fund (FIF). The FIF Accelerator will assist up to 10 small and medium-sized enterprises in developing new ways to make freight greener.

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“Logistics underpins every sector of the UK economy and it is positive to see its importance being championed,” said Kate Jennings, director of policy at Logistics UK.

This announcement coincides with the government’s decision to extend the fuel duty cut to March 2024 and various actions to support the haulage sector, including funding for improved roadside facilities for lorry drivers and increasing the capacity for HGV driver tests by 90% compared to pre-COVID-19 pandemic levels.

“Freight is a crucial sector for the UK and contributes around £127 billion to the economy, but it is not without its challenges,” said Nicola Yates OBE, chief executive officer at Connected Places Catapult.

Reducing the sector’s carbon footprint, cutting journey times and easing traffic congestion are key areas of focus, alongside the development of efficient and better-connected logistics hubs.