Britain’s Road Haulage Association has lauded the government’s decision to make a GBP10bn (US$12.6bn) guarantee available to protect against customer defaults or payment delays.
The Trade Credit Reinsurance scheme, which has been agreed following extensive discussions with the insurance sector, will see the vast majority of trade credit insurance coverage maintained across the UK.
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“Today’s announcement follows months of intensive lobbying by the Association on behalf of the entire UK haulage industry,” said RHA chief executive, Richard Burnett.
“We have been asking government to do more to help operators through the COVID-19 crisis as they gear up to drive economic recovery.”
This week an RHA survey of 600 road haulage operators revealed the vast majority are still struggling after pandemic lockdown measures have seen volumes collapse.
Some 16% of operators claimed they could be insolvent within four weeks, with government furlough payments and bounce back loans offering a temporary reprieve.
“The RHA has been lobbying government tirelessly on this issue and [this] news will come as a shot in the arm for thousands of road transport operators,” added Burnett.
“If the economy is to get back to its pre-pandemic levels, supply chain confidence is vital and we are pleased our efforts to achieve this have, quite literally, paid off.”
