We tuned in to the 2026 Budget report so you don’t have to… here’s what’s important for supply chains in 2027.
Investment in growth
The National Wealth Fund and British Business Bank will provide an additional £20.4bn in support for renewables, AI, defence and other projects. This could indirectly affect supply chains serving these industries, with more renewable energy businesses to work with and a wider range of AI tools becoming available.
Founder relief
People starting their own businesses will benefit from a capital gains tax rate of 10% of up to £10 million. This should make starting a business more attractive, increasing demand for supply chain services and bringing more competition to the shelves.
The British Business Bank also plans to double its commitments to women-led businesses, increasing funding to £200 million. This will make it easier for female founders to secure investment, particularly supporting growth in sectors such as FMCG and retail.
Tariff changes
Import taxes on supermarket items, such as chocolate, baked beans and gherkins, are being suspended to help keep prices down. This could support grocery import volumes, increasing demand for inbound container handling, palletised storage and distribution to retail and wholesale customers. It could also add to upcoming peak-season pressures.
Fuel duty
The 5p fuel duty cuts on petrol and diesel, introduced temporarily by Rishi Sunak in 2022, have been extended until July. This is a welcome benefit for hauliers, helping to keep fuel costs lower for a little longer and providing some additional cost certainty.
Minimum wage
Minimum wage rates will rise by 3.9% for 18–20-year-olds and those aged 21 and over, meaning labour costs will increase.
Overall, the Budget brings a mix of good news and challenges for supply chains. Some changes could help businesses grow and increase demand, while others may put pressure on spending. For logistics businesses, keeping an eye on these changes will help them plan for the year ahead.