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Logistics is key for making Spending Review pledges a reality, says Logistics UK
The Spending Review announcement on 11 June was welcomed in principle by business group Logistics UK, but, as Kevin Green, Policy Director explains, the government’s growth ambitions will only be realised if it prioritises the needs of the logistics sector in its forthcoming Industrial, Trade and Infrastructure strategies:
“Nothing, including the economy, moves without logistics. It underpins every sector that our communities and businesses rely on, every day – from keeping the shelves stocked to managing supply chains. It is what turns building sites into houses, houses into homes and homes into communities where people can live and work.
“The Spending Review makes some bold pledges for transport, power generation, defence, healthcare and home building, with transport capital investment to rise 3.9% across the Spending Review period.
"To turn these pledges into economic growth, it is vital that the government prioritises the logistics sector through the upcoming Industrial, Trade and Infrastructure Strategies – both by providing the infrastructure our sector needs to move goods efficiently, and by enabling our sector to efficiently deliver the country’s renewal that the Chancellor has committed to.
"It is why 30 Chief Executives of some of the UK’s biggest businesses recently wrote to Jonathan Reynolds, requesting that logistics is included as a foundational sector in the forthcoming Industrial Strategy.
“While we welcome the Spending Review in principle, we, along with our members, are making clear to the Chancellor that this investment cannot be funded by higher taxation on hard-pressed businesses. Increases in employers’ National Insurance Contributions are costing our sector an estimated £1.7 billion, and our members simply cannot afford any more whether this is through fuel duty or other business taxes. It is SMEs that power the UK economy and they will be forced to pass on any cost increases which will drive inflation and hamper growth.”
Published On: 12/06/2025 16:24:41
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News In Brief
Government aiming to streamline UK ports
The government has proposed streamlining the planning process for ports in England to speed up infrastructure delivery and support economic growth in coastal communities.
The proposals are designed to expedite planning applications by providing clearer guidance on the need for port facilities and how to meet the latest requirements, such as obligations on noise and emissions.
The government states that these changes will reduce delays and costs, giving ports greater confidence to expand, create skilled local jobs, and drive investment into coastal areas.
The reforms are closely linked to the wider Planning and Infrastructure Bill and are intended to help ports move “further and faster” with commercial projects, securing millions of pounds in investment and supporting jobs across the country.
Recent investments include £35 million ($47.3 million) for a new deep-water terminal at the Port of Liverpool and approximately £1 billion ($1.3 billion) at the Port of Tyne for the development of state-of-the-art infrastructure.
Revisions to the National Policy Statement for Ports (NPSP) will reportedly ensure that planning decisions are made with a focus on driving economic growth and supporting the UK’s ambitions to become a clean energy superpower.
The proposals are published alongside new port freight demand forecasts, which predict a rise in UK port freight tonnage, particularly in roll-on/roll-off cargo and containers.
Logistics UK’s Senior Policy Manager Alexandra Herdman said: “Ports are the lifeblood of the UK economy, keeping the country moving and trading, and are vital in unlocking prosperity and opportunity for our coastal communities.
"Reforms to the planning system to support the protection and development of land suitable for logistics are long overdue and much needed. We will be working with industry and the government to ensure these aims can be achieved."
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