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A manifesto for change: Putting logistics first to drive the economy forward
By Denise Beedell, Senior Policy Manager, Logistics UK
With the government’s stated intention to call a general election later this year, Logistics UK has been working with its membership base – over 21,000 members – to ensure that all political parties are aware of the needs of the logistics sector when finalising their policies.
Logistics UK’s own Manifesto contains asks of the next government that our members believe will unleash the power of logistics to drive growth across the whole economy.
Logistics is one of the UK’s largest economic sectors that is responsible for moving all the goods delivered to UK households, businesses and public services, as well as those imported and exported by UK businesses.
As a sector, logistics connects the UK to new markets as well as improving the way that business is conducted with existing customers, through innovative delivery solutions and the use of new technologies.
Decarb for the win
Top of the agenda for members of Logistics UK is the focus on decarbonisation, something which our sector is committed to delivering.
But to achieve net zero, our industry needs government to work with us to lay out a roadmap for reaching net zero and the phase-out of fossil fuels which does not discriminate against the industry and ensures that the supply chain can be protected.
Logistics businesses are making steady progress on the road to decarbonisation, while operating on very small margins. As a result, our members must invest carefully in the right sort of technology to cut emissions without creating inflationary impacts for households, businesses and public services.
Infrastructure challenges
There is also a very real concern that the energy infrastructure needed to support the switch of fleets to greener technologies will not be delivered at the pace needed by the sector. Logistics companies need reassurance that sufficient energy will be available to sustain the fleet sizes they currently operate in order to deliver for customers – and this is without considering the cost of switching sites over to new refuelling options.
Our members have already reported potential quotes of up to £1 million per depot to increase power supplies – a cost that is unsustainable unless it is to be passed on to customers, which could have a significant inflationary impact; something our members are keen to avoid at all costs.
With net zero deadlines fast approaching, and for heavy vehicle fleets which cannot yet move to battery electric vehicles, there is still no agreed plan for the role that low carbon fuels could play in the transition away from fossil fuels, despite them being able to reduce emissions from internal combustion engines by up to 80%.
Such fuels can provide a bridging technology for decarbonising heavy vehicles, which, in the absence of zero tailpipe emission vehicles entering the market at scale, is vital given that many internal combustion engine HGVs could remain in use until the 2050s.
Our manifesto
With so many critical decisions still to be made on the road to net zero, as well as confirmation of policies surrounding infrastructure investment and skills development, Logistics UK’s key manifesto ask is for the appointment of a dedicated Minister for Logistics and the Supply Chain. Operating with cross-departmental oversight of key projects, this appointment would ensure that the needs of our sector are taken into account when decisions are being made.
Fleets are a critical part of our sector, driving economic growth throughout the UK, by providing all the goods needed by businesses and consumers nationwide. Logistics is a key driver of productivity in the economy, and we estimate that by addressing the capacity issues which currently exist in the transport network, as well as existing planning barriers, skills shortages and border friction, up to £7.9 billion in growth per year could be delivered for the UK.
Our industry has a crucial role to play in generating growth and resolving the long-term challenges our country faces, so it is vital that policymakers put logistics first to drive the economy forward.
To find out more about the asks of the logistics sector, the full Logistics UK 2024 Manifesto can be found at https://logistics.org.uk/research-hub/policies/logistics-uk-2024-manifesto
Published On: 22/02/2024 14:00:00
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