The new Chancellor of the Exchequer, in her first Budget, froze fuel duty for a further 12 months to March 2026 and also announced she is maintaining the 5 pence per litre cut. Logistics UK had been campaigning for this at a time when the industry is facing increasing cost pressures from rising wage and fuel costs. Maintaining the fuel duty cut provides logistics businesses with more certainty as they drive the transition to a greener economy.
However, it was overall, a challenging Budget for logistics businesses, particularly due to the increase in employer National Insurance Contributions (NIC) which we estimate will cost the wider sector £1.7 billion a year.
Logistics UK and the Zero Emission Van Plan
Logistics UK is delighted to be part of the Zero Emission Van Plan, a campaign with BVRLA, REcharge UK, the Association of Fleet Professionals (AFP) and The EV Café which campaigns for regulatory reform and other measures to help operators with the green transition. Since being established, positive meetings have taken place with ministers, backbench MPs and the Office for Zero Emission Vehicles (OZEV), where the team is actively exploring solutions to some of the problems highlighted by the coalition.
In October, Sarah Edwards MP led a debate in Parliament to make the case for enhanced support for the transition to electric vans in the logistics sector, highlighting the key points of the Zero Emission Van Plan. Transport Minister Lilian Greenwood acknowledged the challenges and the need for additional measures and, the following day, the Chancellor announced funding for the Plug-in Van Grant for another year from April 2025.
Reform of Driver Certificate of Professional Competence
Parliament approved amendments to the Driver Certificate of Professional Competence in October. Following consultation with members and years of engagement with policymakers, the new secondary legislation ensures road safety is maintained while introducing flexibility into the training regime that will help retain drivers and ease the process for those returning to the industry.
Extension of the Direct Vision Standard Phase 2 grace period
Following extensive negotiations between Logistics UK and Transport for London (TfL), the Direct Vision Standard (DVS) Phase 2 grace period was extended by three months to 4 May 2025. Logistics UK has been closely engaged throughout the decision-making process over the introduction of the Progressive Safe Standard, representing member views in consultations, bi-lateral meetings with officials, and also met with the Commissioner for TfL and the Walking and Cycling Commissioner, Will Norman.
New logistics unit in the Department for Business and Trade
The new team is establishing relationships with logistics businesses and joining the dots with other relevant parts of government for the sector. This is a positive development for logistics and reflects Logistics UK’s call for the sector to be recognised for its importance to UK plc and to be considered a key stakeholder on decisions beyond the Department for Transport.
Economic growth at the heart of the King's Speech
In the summer, the King’s Speech outlined the new government’s legislative programme, putting economic growth at the centre of its ambitions. Announcements included 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 (alongside continuing to back the rail freight growth target), and the introduction of the Sustainable Aviation Fuel (Revenue Support Mechanism) Bill.
Since then, the Chancellor announced that the government will borrow £100 billion to invest, including to support a forthcoming Infrastructure Strategy, and the Prime Minister committed to speed up decisions on major infrastructure projects in the Plan for Change.
Delay to the introduction of the EU Entry and Exit System
The European Commission delayed the introduction of the EU Entry and Exit System (EES), which will require non-EU travellers to provide biometric information, such as fingerprints and facial scans, at the border.
Logistics UK has continually raised concerns about the knock-on impact on freight and GB EU trade if EES was introduced as planned on 6 October. In oral evidence to a Westminster Committee, in meetings with ministers and UK officials, at the UK Domestic Advisory Group and in the media, we have been calling for a delay and for mitigation measures to be put in place to help reduce the impact on hauliers.
More broadly, the government has said it wants a closer relationship with EU on trade, including a new Veterinary Agreement to reduce and remove some current barriers to trade flows.
Network Rail's Track Access Discount Policy
Network Rail launched its Access Charges Discount Policy, which is open to both passenger and freight operators. These discounts are intended to encourage the development of new services or the use of considerably under-utilised lines. For applications that qualify, the discount is for six months zero variable use charge. Logistics UK has continually called to ensure the rail freight growth target is met and lowering or possibly removing the track access charge for new rail freight flows, helps towards this goal.
Planning for infrastructure projects
At the end of the year, the government published the new National Planning Policy Framework (NPPF), which instructs planners to support the economy by identifying suitable locations for freight and logistics, and says local planners are to have regard to industries of national importance, to support economic growth.
Logistics UK responded to the NPPF consultation and supports the commitment to fast-track planning decisions on at least 150 major economic infrastructure projects and reforms, outlining how logistics is critical to economic growth.
Growth and Skills Levy
The government has announced a significant policy shift to replace the apprenticeship levy with a growth and skills levy. This development introduces greater flexibility, including funding for shorter apprenticeships and foundation apprenticeships. These changes are a direct response to the evolving needs of the UK workforce, as highlighted by Skills England, a newly established body tasked with assessing national skills priorities.
2024: Logistics UK policy team's biggest achievements
Setting the narrative
• Launched national and devolved manifestos in 2024 to promote our centrality to growth, leaning on and socialising Logistics UK’s expert policy insight. To further share our growth message, policy priorities and insight, we have held successful events across the party conferences and in Parliament, as well as through webinars, correspondence and consultation responses, and by promoting our messages in the media and via social media. We have also held bilateral meetings and roundtables with devolved politicians in Scotland, Wales and Northern Ireland, and will hold our first networking reception in the Scottish Parliament in summer 2025.
• Launched our English regional priorities in 2024, making clear our sector’s relevance to regional growth. In particular, we have played a pivotal role in building the West Midlands Logistics Cluster, including through its steering group, and will have a seat on the forthcoming advisory board. This has been supported by our engagement with the new and previous Mayor of the West Midlands.
Engaging across Government and Parliament
• Engaged with ministers and other senior politicians to highlight our priorities, including through bilateral meetings, roundtables, panel events and through our President’s Council. For example, Transport Minister Lilian Greenwood attended our first President’s Council after the July 2024 election, and Energy Security and Net Zero Chair Bill Esterson fronted a Logistics UK report launch in Parliament, that attracted nearly 100 business leaders and policymakers.
• The Department for Business and Trade has recognised the importance of logistics to the economy and has established a team to champion logistics across government. Through that team, as well as engagement with the DfT and increased engagement with HM Treasury, Cabinet Office and more, we are making the case for logistics to be recognised as a foundational sector within the forthcoming Industrial Strategy.
We gave oral evidence at two Parliamentary committees, Parliament’s European Scrutiny Committee about the forthcoming EU Entry/Exit System, and the House of Commons Transport Committee about the use of data in logistics to drive efficiency, improve safety and reduce carbon emissions.
