Understand
Dozens of Cumbria haulage workers lose jobs as diesel costs soar
Overview
Cumbria-based haulage firm JT Leyland has gone into administration, resulting in the loss of jobs for all 43 staff members. Administrators FRP Advisory stated the collapse was due to challenging trading conditions and rising costs, as the haulage sector faces severe financial pressure from soaring diesel prices linked to oil supply disruptions.
Key points
- JT Leyland in Milnthorpe, Cumbria, entered administration, affecting all 43 employees after operating for more than 50 years.
- Administrators FRP Advisory attributed the failure to a challenging trading period driven by rising costs.
- The Road Haulage Association (RHA) warned that diesel prices reaching about £2 per litre are unsustainable and are causing hundreds of insolvencies across the industry.
- Diesel currently accounts for roughly a third of the operating cost of a commercial vehicle.
- Other local haulage firms, such as Pellymounters and WM Armstrong, report severe financial pressures and rising daily expenses due to disrupted oil supplies.
- The RHA is urging the chancellor to scrap a planned fuel duty increase and provide extra support in the upcoming government budget.