Member News – 28 October 2026

28 October 2026

In this issue:

• Implications of the Budget for logistics.
• Parliamentary launch of UK logistics: a critical driver of growth and investment.
• Government response to updating the minimum emission standards closely aligns with Logistics UK’s position.
• Consultation response: ZEV Mandate review.
• New member briefing note: diabetes in the road transport sector.
• DVSA has published the results of its 2025 Market Surveillance Unit (MSU) programme.
• DVLA Survey on eVED.

Policy updates

Implications of the Budget for logistics

John Healey MP, Chancellor of the Exchequer, delivered his first Budget to the House of Commons this afternoon. Logistics UK’s Budget submission may be found here.

Headline announcements:

Fuel Duty freeze extended
Fuel Duty has been frozen for a further six months, until 1 July 2027, when the previously-announced 12-month holiday from vehicle excise duty (VED) for most HGVs is also due to end.

The 3.7p cut to duty on red diesel has been extended for a further six months to 1 July 2027, supporting rail freight.

These are wise decisions which will help keep trade moving, support growth across the economy and avoid adding further inflationary pressures. Logistics UK is delighted that that the Chancellor has listened to its strong case for maintaining the duty cut at a time of global uncertainty and rising costs for businesses and consumers.

The savings announced today will save logistics businesses a further £207 million for road users and £3.7 million for rail, for the first half of 2027.

So, the total savings for logistics businesses on Fuel Duty freezes and reductions from the second half of 2026 and the first half of 2027 (announced today), plus the 12-month VED holiday, will be £470 million.

Business rates
There were no measures announced to support the logistics sector on business rates, meaning that large properties in the sector continue to pay a higher rate. This adds to costs and risks dissuading investment.

Fiscal devolution
Measures in the Fiscal Devolution Roadmap, published alongside the Budget, could encourage mayors to support logistics development, by enabling them to keep a share of business rates.

VAT
Confirmation that the government intends to extend VAT liability to online marketplaces from October 2027 is a welcome measure to help level the playing field between compliant and non-compliant sellers.

Infrastructure investment
The National Wealth Fund and British Business Bank are to deploy up to £5 billion over the next four years into sectors that support UK national security, create the opportunity to invest in logistics infrastructure that bolsters the UK’s defence capability and resilience.

Mayoral strategic authorities will be able to borrow to invest in transport and infrastructure, which increases the importance of those authorities understanding the economic value that logistics delivers to their regions.

Decarbonisation
The government’s decision to freeze the main rate of the Climate Change Levy on electricity from April 2028, alongside the previously announced removal of Carbon Price Support, is welcome. Slowing the rise in electricity costs will assist the sector directly and also support decarbonisation by improving the Total Cost of Ownership of electric commercial vehicles. While this is a positive first step, further action is needed to bring electricity costs down and ensure electrification becomes a commercially viable option for more logistics businesses.

Grid connections
The Chancellor has recognised that investment in the grid has not kept pace with demand, reiterating that Great British Grid will work alongside existing network operators to increase competition and support delivery of grid upgrades and reforms.

The government’s response to the consultation on accelerating electricity network connections, published alongside the Budget, confirms reforms. These are intended to accelerate access to network connections and prioritise strategically important projects that support economic growth and electrification. While the response’s current focus is primarily on AI and data centres, Logistics UK continues to press for other strategically important sectors, including logistics and freight, to receive the same level of attention and prioritisation in accessing electricity network connections.

Skills
A £100 million investment in local apprenticeship services is a welcome step towards improving employer engagement and access to apprenticeships. However, the Budget does not include logistics-specific workforce measures, meaning the impact on shortages in occupations such as drivers, technicians and planners will depend on how local programmes are designed and delivered.

Trade
There are no steps in the Budget towards delivering a Single Trade Window, which is a missed opportunity to support trade-led growth by reducing trade frictions.
Confirmation that existing customs relief duty on Low Value Imports is to be introduced from October 2028 is welcome, as it gives the sector a clearer timescale than it had before for preparing its systems to manage this operational change.

UK logistics: a critical driver of growth and investment

Logistics UK launched a report it commissioned from Capital Economics in Parliament yesterday (27 October 2026), assessing the indirect, induced and catalytic impact of the logistics sector on the UK economy.

Chaired by Logistics UK’s Chief Executive Ben Fletcher and sponsored by Rachel Taylor MP, attendees heard that logistics is not simply a beneficiary of economic growth, it is one of the conditions required to achieve it.

Imogen Pattison from Capital Economics shared the key findings of the report, which revealed that logistics underpins £356 billion of economic activity, 5.3 million jobs and £65 billion in tax revenues across the UK. Plus, for every £1 generated directly by logistics, a further £1.04 is supported elsewhere in the economy.

Sarah Watkins, Deputy Director for Policy Information at Logistics UK, provided the wider context of Logistics UK’s research findings, James Stephens, VP of Corporate Affairs from DHL offered an industry perspective, and Phil Roe, Logistics UK’s President shared his closing thoughts on the report and its implications.

Members can download the report here.

Government response to updating the minimum emission standards closely aligns with Logistics UK’s position

The government’s conclusions on its consultation on updating the minimum emission standard for new road vehicles broadly reflects key recommendations made by Logistics UK. Government has adopted or substantially aligned with industry requests to maintain regulatory alignment with the EU, accept EU and UNECE approvals, mirror any future EU implementation delays, apply a proportionate and risk-based In-Service Conformity (ISC) regime, and provide flexibility for specialist and multistage vehicle manufacturers.

The outcome represents a positive result for the logistics sector, with most of Logistics UK’s principal policy objectives either accepted or reflected in the final proposals. Government recognised concerns regarding implementation timescales, vehicle approvals, and the potential burden on specialist vehicle sectors.

The government response can be found here.

New member briefing note: diabetes in the road transport sector

Logistics UK has developed a new briefing note to help members better understand the risks and implications of diabetes for professional drivers.

The publication features a foreword from Kate Walker, CEO of the Diabetes Safety Organisation, including insights from the organisation’s Hiding in Plain Sight: The UK Diabetes Crisis report. The report calls on the road transport sector to take action to improve awareness of diabetes and its impact on workforce health and safety.

As professional drivers are twice as likely to develop Type 2 diabetes as the wider population, the briefing note brings together essential information, practical guidance, and a clear summary of DVLA rules relating to diabetes.

Access the briefing note here.

Quick briefs

Consultation response: ZEV Mandate review

Logistics UK submitted its response to the government’s review of the ZEV Mandate. Our response supports a more achievable trajectory for van electrification, alongside urgent action on charging infrastructure, grid capacity, electricity costs and vehicle affordability. Logistics UK emphasised that operators remain committed to decarbonisation but require a more enabling environment to invest in zero-emission vans with confidence. Our response was submitted following extensive engagement with members, including a dedicated workshop, one-to-one discussions, and discussions in our regional Member Meetings.

If members would like to get in touch about this response, please contact Stephanie Haszczyn.

DVSA publishes 2025 vehicle market surveillance results

The Driver and Vehicle Standards Agency (DVSA) has published the results of its 2025 Market Surveillance Unit (MSU) programme, covering emissions testing as well as the safety and compliance of vehicles, components and equipment. The MSU inspects vehicles, trailers, parts and equipment to check they are safe to buy and use and meet relevant environmental standards.

The link to the report can be found here.

DVLA Survey on eVED

From April 2028, a new mileage usage charge will be introduced for electric and plug-in hybrid cars. When taxing a vehicle, eligible vehicles will also be required to provide a mileage reading, as well as forecast the mileage usage for the forthcoming licensing period.

The DVLA is developing a new Fleet Management Service that aims to make it easier to manage fleet licensing. The service will allow users to license vehicles in bulk or individually, as well as top up mileage at any point during the licensing period.

The DVLA is looking for views to help them better understand how the new eVED requirements may impact businesses. This survey covers areas such as capturing vehicle mileage, managing de-fleeting processes, and payment preferences. Your feedback will help us identify any challenges and ensure the service meets customer needs.

Survey link – https://online1.snapsurveys.com/eVEDFleetsSurvey2026

If you have any questions on eVED, please direct any queries to [email protected] to reach out directly. If you’d like to discuss this with Logistics UK, please email Stephanie Haszczyn.

Month in review – October 2026

Skills England occupational standards consultation and round table

Logistics UK has responded to Skills England’s consultation on the future of occupational standards, highlighting the need for a skills system that better reflects the realities of a modern, multimodal logistics sector. Our response welcomes the role standards play in defining occupational competence but calls for faster updates to keep pace with automation, artificial intelligence, digitalisation and the transition to net zero. We also emphasise the importance of clearer progression pathways, stronger support for leadership and management development, and greater flexibility through apprenticeship units and modular learning. With much of the future workforce already in employment, we stress that skills policy must support upskilling and reskilling existing workers as well as attracting new entrants into the sector.

Logistics UK recently convened a roundtable with Skills England and other trade associations called “Improving Access, Progression and Retention in Logistics.”

GreenPort 2026 at Portsmouth International Port

Logistics UK recently attended and gained valuable insight into the opportunities and challenges facing ports as they decarbonise and strengthen climate, cyber and national security resilience. A tour of the port highlighted its recent achievement of becoming the first UK port to connect three vessels to shore power simultaneously, reducing emissions while ships are at berth, benefiting local communities.

Conference discussions focused on the growing importance of port electrification, energy infrastructure, climate resilience and collaboration across the maritime sector. Speakers emphasised that energy capacity and grid connections are becoming key constraints on future growth, while technologies such as shore power and real-time emissions monitoring will play an important role in meeting decarbonisation goals.

ZEV Mandate Review

Logistics UK has responded to the government’s review of the Zero-Emission Vehicle (ZEV) Mandate. The Department for Transport (DfT) team responsible for the review joined our Decarbonisation Working Group in September to discuss the policy and hear directly from members.

Logistics UK subsequently hosted a dedicated member workshop and held individual discussions with operators, receiving valuable verbal and written feedback from across the sector. Our response highlighted the need for a more enabling operating environment, including action on charging infrastructure, vehicle availability and costs, if government wants operators to accelerate investment in electric vans.

Logistics UK subsequently hosted a dedicated member workshop and held individual discussions with operators, receiving valuable verbal and written feedback from across the sector. Our response highlighted the need for a more enabling operating environment, including action on charging infrastructure, vehicle availability and costs, if government wants operators to accelerate investment in electric vans.

Political engagement in Northern Ireland

Following a meeting with Brenda Maguire, Peter McReynolds tabled a number of Assembly Questions to highlight an important issue for NI members – the need to reform the Apprentice Levy and enable NI logistics businesses to access increased funding to address skills shortages. John Stewart MLA has also agreed to highlight the acute challenges facing the industry through a Members Statement in the NI Assembly.

APPG for Freight and Logistics

Maddi Solloway-Price attended the APPG for Freight and Logistics session on HGV driver health and welfare, which brought together representatives from across the freight industry, academia and Government to discuss the challenges facing drivers and what more can be done to support them.

Chaired by Rachel Taylor MP, the session explored the impact of working conditions on drivers’ physical and mental health, including long hours, sedentary working patterns and difficulties accessing healthcare.

The discussion also considered the importance of safe and secure roadside facilities and the impact this has on freight crime and drivers’ wellbeing.

Insight and reports

Capital Economics report launch

Logistics UK has published a new report assessing the positive contribution of logistics for the economy. It explores the indirect, induced and catalytic effects of improving the country’s logistics capabilities, finding that a 1% increase in logistics’ share of the economy could attract £30 billion of foreign investment into the UK. It also assesses the scale of the industry, as the logistics sector underpins £356 billion of economic activity, 5.3 million jobs and £65 billion in tax revenues across the UK, as well as enabling more than £1 trillion of international trade every year.

Members can download the report here

Support and advice

Towing a small trailer

Q. We have taken on a short-term contract that requires our 3.5t maximum authorised mass vehicle to tow equipment to site. Do we need to add this to our operator licence?

A. For operator licensing, if the trailer has an unladen weight not exceeding 1,020kg and is used for own account work, then this would mean that the small trailer concession could be applied, meaning the combination would be out of scope.

If the unladen weight of the trailer exceeds this or is used for hire and reward operations, then this would bring the combination in scope and would need to be listed on the operator licence.

Work or rest?

Q. We have a web-based training app which some drivers are completing at home over the weekends. Is this classed as an interruption to their daily or weekly rest?

A. If drivers can complete the training during the working day and are neither required nor instructed to do so outside of work hours, any training they voluntarily undertake outside work would be considered and recorded as rest.

If there is a concern or fear of repercussion or consequence of failing to do this training, then our interpretation would be that they are under instruction and as such be classed as working time.

Truck or train?

Q. We currently transport most of our goods by road. Are there opportunities to use rail freight instead?

A. Rail freight can offer benefits for certain longer distance movements, helping to reduce pressure on the road network while providing a reliable means of moving large volumes of goods.

Logistics UK supports investment in rail freight capacity, terminals and grant funding to make modal shift a practical option for more businesses where it is commercially and operationally viable.

Average EU and UK forecourt prices

Please find the average EU and UK forecourt prices here.

Have your say

Logistics UK works to ensure the voice of the logistics industry is heard by government and decision-makers. By taking part in our surveys, members provide the evidence and insight that help shape policy discussions, consultation responses and industry campaigns.

CLOSING FRIDAY 30 OCTOBER! Members, please take part in the Logistics Performance Tracker Q3 Survey and share your views.

This short, confidential survey is designed to gather insights into the real-world performance, challenges and opportunities across the UK logistics sector.

Along with our baseline indicators on economic outlook and supply chain performance, questions this quarter focus on extreme weather and business resilience, regional devolution and strategic planning, and contingency planning.

Responses are used to support our policy work and engagement with key government officials.

Take the survey here

Month in the media – October 2026

Logistics UK maintained a high profile in the media during October, with the press team providing comment and opinion on a variety of issues to ensure members’ views continue to be represented and heard by policymakers, opinion formers and the media.

Coverage was generated online on BBC News (the world’s biggest website), as well as The Independent, Yahoo! News, MSN and AOL websites, and on BBC1 South East, UTV, LBC News and BBC Kent, for issues including fuel prices, Brexit and Operation Brock.

168 items of editorial coverage were placed by the team during the month, including six in the national press, and 13 broadcast interviews were negotiated, creating the opportunity for 1.3 billion people to learn Logistics UK’s point of view on the topics under debate during the month.

The month ahead

During November, the media team will continue to raise awareness of members’ opinions on topics affecting the sector, including the effect of the Chancellor’s autumn Budget announcements on the industry, decarbonisation, supply chain disruption and border challenges. The team will also continue to highlight the industry’s skills shortages, promoting the Generation Logistics campaign at every opportunity while emphasising the need for improved driver facilities and publicising the THRIVE wellbeing hub, which is entering its second year. Logistics UK’s 2026 events programme will also be highlighted, with the autumn Transport Manager conference series currently under way and the Logistics Awards taking place on 10 December.

Do you have a story to share? Has one of your staff members completed a Logistics UK apprenticeship? If you are keen to speak to the media – whether it’s about a key industry issue such as skills shortages, fuel costs or decarbonisation, or a success story from your organisation, we’d love to hear from you. Journalists are especially interested in personal stories, staff achievements, unique hobbies or expertise and women working in the sector, particularly female drivers. Contact the media team at [email protected] – we look forward to hearing from you!