Logistics UK responds as new Transport Minister addresses sector in Commons

Alexander answered questions on road maintenance, road safety, transport infrastructure projects and Sustainable Aviation Fuel (SAF).  

With regard to roads maintenance, Heidi Alexander and her ministerial team highlighted the government’s additional £500 million investment and called for local authorities to move beyond simple patching to implementing long-term repair and resurfacing programmes.  

Her comments were met with scepticism by Shadow Transport Minister Jerome Mayhew MP who highlighted the new government’s cancellation of several road investment schemes, and fellow Conservative MP John Lamont protested the decision to cancel the A1 dualling project.  

The Transport Secretary defended her position, describing the inherited schemes as "half-baked and under-funded." Charlotte Cane, Liberal Democrat MP for Ely and East Cambridgeshire, called for the government to back the Ely Area Enhancement scheme, highlighting how it would benefit rail passengers and rail freight users, remove lorries from the road and better connect the Midlands to ports.  

The Secretary of State indicated the project’s future would be determined by the upcoming Spending Review, which she promised would deliver a "realistic pipeline of transport schemes."  

Transport Committee Chair Ruth Cadbury MP raised concerns about capacity on the West Coast mainline and the need to connect HS2 phase 1 to the rest of the country. The Transport Secretary described the HS2 project inherited from the previous government as a "mess," suggesting that the Spending Review would provide a more realistic approach to transport scheme delivery.  

Aviation Minister Mike Kane said that the SAF mandate came into force at the start of the year, supported by a Revenue Certainty Mechanism (RCM) and the Advanced Fuels Fund. When pressed about synthetic fuels by Shadow Transport Minister Greg Smith, Mike Kane acknowledged their potential and confirmed the government's support for multiple approaches to meeting the SAF mandate. 

Kevin Green, Director of Policy & Communications at Logistics UK said: “Logistics is fundamental to our economy, our way of life and the nation’s prosperity. Nothing moves without logistics: it supplies our hospitals, schools, factories and shops with everything they need, everywhere, every day. 

“The sector contributes £185 billon to the economy every year and employs 8% of the UK workforce, and research from Oxford Economics shows that by establishing the right partnerships, regulations and investment for logistics, the government can deliver productivity gains that will boost the UK economy by up to £8 billion per year by 20301. 

“But congestion and delays, friction at our borders, and a lack of public investment over time are making UK logistics less efficient. The World Bank Logistics Productivity Index shows that the UK has slipped from fourth in the world to 19th in the last 10 years. 

“Transport Secretary Heidi Alexander has a huge opportunity to address the decline in logistics productivity, drive growth and secure the sector’s place in the forthcoming Industrial Strategy, including through a genuinely integrated transport strategy that meets the needs of the travelling public while facilitating the efficient movement of freight. 

“Logistics UK has identified the key transport corridors and critical routes for investment, and is pressing the Treasury and the Department for Transport to better identify the UK’s strategic logistics network and use this as the basis of a 30-year infrastructure strategy for freight to turbocharge growth across the whole economy.” 

“An effective supply chain is vital to Keep Britain Trading, directly impacting over seven million people employed in making, selling and moving the goods that affect everyone everywhere.  

“With Brexit, technology and other disruptive forces driving changes in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc.   

“As champions and challengers, Logistics UK will continue to speak to government with one voice on behalf of the whole sector, greatly increasing the impact of our messages and achieving amazing results for members. 

“As a sector we continue to tackle the key issues such as reducing friction which causes delays at the UK's borders, especially after EU Exit; investing in infrastructure to reduce congestion and delays across our strategic transport networks; decarbonisation and how the sector is investing in this area in order to meet net zero targets; skills and the need to recruit and retain the workforce. 

Published On: 16/01/2025 14:15:32

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