July policy wins

Extension of the Direct Vision Standard Phase Two grace period 

Following extensive negotiations between Logistics UK and Transport for London (TfL), it has been announced that the Direct Vision Standard (DVS) Phase 2 grace period will be extended by three months, meaning it is now six months in total, through to 4 May 2025, via the introduction of the Progressive Safe Standard. 

London Councils' Transport and Environment Committee (TEC) recommended Transport for London (TfL) learned from the experience of phases one and two to help preparations for phase three.

TfL will be required to provide additional information to smooth the introduction of future phases, such as information on real-world testing of equipment, measures to mitigate phase two equipment obsolescence and details of equipment and fitters' availability and mitigating sensory overload of drivers. 

Logistics UK has been closely engaged throughout the decision-making process and has been monitoring developments. As part of the work calling for an extension, the business group submitted a consultation response at the beginning of phase two discussions, outlining the critical concerns over proposals.

It also conducted a series of bilateral meetings with the relevant TfL officials throughout the process and also met with the Commissioner for TfL and the Walking and Cycling Commissioner, Will Norman to reinforce messaging. In addition, Logistics UK delivered a presentation to a meeting of the TEC of London Councils and voiced concerns to the individual Council members, which took the final decision of the grace period.

To inform Logistics UK's position, it conducted a member survey to gather data to support positions. 

Logistics UK is pleased that the grace period has been extended and will continue to closely monitor developments when the regulations change on 28 October. 

Economic growth at the heart of the King's Speech 

Last month (17 July) the King delivered his King’s Speech, outlining the new government’s legislative programme, putting economic growth at the centre of its ambitions.  

Among the announcements were multiple positive developments for the logistics sector, including: 

·       A new Planning and Infrastructure Bill to accelerate infrastructure delivery, including by streamlining the delivery process for critical infrastructure and allowing building on the ‘grey belt’.

·       The establishment of Great British Railways (GBR) under the Rail Reform Bill. This will introduce a statutory duty on GBR to promote the use of rail freight, alongside an overall growth target set by the Secretary of State and safeguards to ensure that freight operators continue to receive fair access to the network.

·       The introduction of the Sustainable Aviation Fuel (Revenue Support Mechanism) Bill to deliver a revenue certainty mechanism for SAF producers who are looking to invest in new plants in the UK. This builds on the SAF mandate, which will create demand for SAF by setting targets on fuel suppliers to use a proportion of SAF.

·       Reform of the Apprenticeship Levy through a new Growth and Skills Levy and the establishment of Skills England which will convene employers, unions, education and training providers, and experts with national government to develop a single picture of national and local skills needs.

·       Enhanced powers for metro mayors and combined authorities under the English Devolution Bill. This will include greater powers over strategic planning, local transport networks, skills, and employment support and create duties for local leaders to produce Local Growth Plans.

·       The establishment of an Industrial Strategy Council.

Given the logistics sector underpins the economy, it is positive to see new legislation focusing on accelerating the delivery of critical transport and energy grid infrastructure - both crucial to the performance of the logistics sector. 

Logistics UK focuses on five key agendas to take the country forward: innovative and integrated infrastructure, a fair transition to a green economy, skills partnerships to support a thriving sector, trade growth backed, and safe and efficient road freight.

The business group has welcomed a number of these announcements, recognising they can accelerate and optimise improvements across the UK logistics network.

Logistics UK has welcomed the news on Skills England as well as the reform of the Apprenticeship Levy, which the group has called for over many years.

Additionally, it is positive that Great British Railways will have a statutory duty to promote the use of rail freight in addition to an overall growth target set by the Secretary of State. 

Logistics UK will continue to promote the logistics industry and raise its profile, putting logistics first. With the right partnerships, regulations, and investment, government can deliver productivity gains to supercharge the UK economy by up to £8 billion per year by 2030. 

Published On: 01/08/2024 13:58:32

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