Logistics UK says government must back logistics

As we move into 2025, business group Logistics UK believes that 2025 presents a significant opportunity for the government to create a policy environment that allows our industry to thrive and support economic growth for the whole of the UK. By establishing the right partnerships, regulations and investment for logistics, the government can deliver productivity gains that will boost the UK economy by up to £8 billion per year by 2030. As one of the UK’s key foundational sectors, the government needs to prioritise addressing logistics’ needs in reducing trade friction, improving infrastructure, enabling a fair path to decarbonisation and ensuring the sector has the skilled workforce it needs now and in the future.

Smooth trade by reducing border friction

2024 was a monumental year for changes to the UK’s borders, with new procedures implemented following Brexit, such as the Border Target Operating Model (BTOM) and Windsor Framework coming into effect. However, the constant changes to deadlines that we have seen in 2024 to new border operating systems have cost the industry financially and eroded confidence in both the government and our sector in terms of our ability to deliver for customers. With more changes to BTOM and the EU’s new Entry/Exit System (EES) coming into effect in 2025, the government must provide clarity and the detail the industry needs to plan and adapt to meet these new trading requirements to reassure customers and protect the supply chain.

National freight network and infrastructure

The previous government committed to working with the freight sector to develop a National Freight Network (NFN) and our members are keen to see this taken forwards as a priority. Logistics UK has identified the key transport corridors and critical routes for investment our industry needs for this to become a reality and is pressing the Treasury and the Department for Transport to use our research to identify the UK’s Logistics Network and use this as the basis of a 30-year infrastructure strategy.

Fair decarbonisation roapmap

The logistics sector is embracing the challenge of achieving net zero. A jointly developed sustainability and decarbonisation roadmap would enable the UK to become a world leader in logistics sustainability. The government must recognise that logistics is comprised of multiple transport modes and varied infrastructure, meaning a variety of approaches will be needed to achieve a fair transition to net zero, while keeping costs down for customers and supply chains resilient.

Invest in skills

The sector is still experiencing ongoing challenges with skills shortages in key roles, such as vehicle technicians: therefore, it is critical that the government works with the sector to attract new talent into the profession. The Generation Logistics awareness campaign, a collaboration between government, Logistics UK, CILT (UK) and over 40 businesses across the sector, started in 2022 and after the first year had generated a 140% increase in individuals giving a positive score for the appeal of a logistics career. The government needs to commit to continuing support and funding for the programme.

LOGISTICS UK

03717 11 22 22

enquiry@logistics.org.uk

www.logistics.org.uk

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