Claudy firm DA Miller and Sons Transport Ltd
A director of a County Derry-based transport company fears his business will face 'significant obstacles' following the Labour Party's first Budget in 14 years.
Glen Miller, of Claudy firm DA Miller and Sons Transport Ltd, was last night speaking about his concerns, just days after Chancellor Rachel Reeves set out her plans.
Mr Miller (41) said the Budget, which includes massive tax increases, will threaten the stability of his company's business model over the next year.
The family run business' primary base is in Claudy and they have a secondary operations base in Ellesmere Port.
The company, which has been a steadfast presence in the transport industry since its founding in 2004, has been specialising in recycling and bulk transport since 2009.
DA Miller & Sons contributes not only to efficient logistics but also to environmental sustainability, moving goods across Northern Ireland and Great Britain.
Expressing his concerns, Mr Miller said: “Our commitment to service and sustainability, faces significant obstacles under the latest budget. Together with my father, our team of 29 dedicated staff, and our fleet of 22 lorries, we already contend with the daily pressures of operating in a highly competitive industry. The newly introduced budget measures are set to dramatically increase our operational costs, threatening the stability of our business model over the next year.
“One of the most pressing concerns is the rise in employer National Insurance Contributions (NIC), scheduled to take effect in April. The increase is substantial: each minimum-wage employee will cost us an additional £1,050 annually, local drivers will add £1,180, and UK-based drivers an extra £1,480. In total, these NIC increases will add nearly £40,000 to our annual expenses—a daunting sum for a company of our size. While we are eligible for the £5,000 employment allowance, it scarcely offsets the £35,000 additional burden we’ll need to absorb. With tight margins and high overheads inherent to the transport industry, every pound counts. These additional expenses could force us into tough decisions about staffing, investment, and future growth.”
He continued: “One encouraging aspect of the budget is the government’s decision to freeze fuel duty. Fuel is among our largest costs, with 22 lorries on the road across Northern Ireland and Great Britain daily. A stable fuel duty allows us some predictability in our budgeting, providing a measure of financial stability amid rising costs elsewhere. This freeze offers a degree of confidence, enabling us to manage one of our most critical expenditures.
“Still, the combined effects of rising wages and increased NIC place immense strain on the transport sector, particularly on smaller companies like ours. While wage adjustments are understandable, the compounded costs risk overwhelming smaller operators.”
Mr Miller is now urging the government to consider further relief for SMEs in future budgets.
“Running a transport company that supports local communities and keeps goods moving between Northern Ireland and Great Britain is challenging yet essential work. Every bit of support - from relief on NIC hikes to investment in infrastructure - would be invaluable in allowing us to continue thriving, growing, and keeping our fleet moving forward,” he added.
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