New strategy must boost growth through frictionless trade with Europe, says Logistics UK

Logistics UK, one of the UK’s largest business groups and the only trade association representing the whole of logistics, is urging the government to prioritise workable solutions for frictionless trade that business needs to drive growth throughout the economy.  Responding to the Department of Business and Trade’s (DBT) call for stakeholder input into the forthcoming Trade Strategy, the group has stressed that immediate changes should be made to border processes to ease the movement of goods across the UK’s borders with Europe, the UK’s largest and closest trading partner.

According to the business group, the cumulative impact of changes to trade and border policies following the UK’s departure from the EU is adding significant cost and inefficiency to the sector.  The new Trade Strategy needs the government to take a consistent approach, to give the logistics sector the reassurances and clear, timely communication that will allow the nation to trade smoothly. In its submission to DBT, Logistics UK also stresses that a closer, easier trading relationship with the EU is key to reset the UK’s economic prospects and achieve future success for business and the economy. In the opinion of the group’s members, the new Trade Strategy needs a clear and practical focus on removing the barriers to exports and reengaging UK businesses who have removed themselves from the export market in recent years because of cost or complexity.

Logistics UK Policy Manager – Trade, Customs and Borders Josh Fenton says, “The past decade has brought enormous challenges for many businesses, particularly in the logistics sector, and the current lack of stability has damaged business confidence which, ultimately, has affected domestic and international investment and trading relationships with our EU neighbours. Many businesses that previously were trading internationally are now solely focusing on the domestic market, reducing opportunity for the UK to benefit from strong, profitable business opportunities. The Trade Strategy can reset the UK’s trading position, creating the environment to smooth trade and drive growth across the economy.”

Logistics UK is also repeating its call for the government to appoint a dedicated Minister for Logistics and Supply Chain with cross departmental responsibility.  Fenton continues, “Logistics is a foundational economic sector, underpinning practically every industry or service in the country and contributing £185 billion to the economy each year. Nothing in the economy moves without the work of our sector. A dedicated minister would streamline interaction with government, enabling our members to increase the already significant economic contribution they make and drive growth across the UK economy.”

Logistics UK’s submission also outlines practical steps its members are pressing for the Trade Strategy to cover to smooth trade including the efficient delivery of the 2025 UK Border Strategy; evolution and expansion of our trading relationship with Europe, including a comprehensive Veterinary Agreement; efficient implementation of the Windsor Framework and Free Trade Facilitation Agreements and Free Trade Agreements to grow UK-world trade with logistics and connectivity at the core of negotiations.

Fenton concludes, “The new Trade Strategy must allow the government to rebuild the confidence and credibility throughout the logistics sector that it can deliver the solutions our industry needs to thrive and drive growth throughout the UK. Our members stand ready to work with government to make a reset relationship with the EU an effective reality, for the benefit of all sections of the economy.”

Logistics UK is one of the UK’s leading business groups, representing logistics businesses which are vital to keeping the UK trading, and more than seven million people directly employed in the making, selling and moving of goods. With decarbonisation, Brexit, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc. Logistics UK supports, shapes and stands up for safe and efficient logistics, and is the only business group which represents the whole industry, with members from the road, rail, sea and air industries, as well as the buyers of freight services such as retailers and manufacturers whose businesses depend on the efficient movement of goods. For more information about the organisation and its work, please get in touch – here.