Industrial Strategy consultation: Government shares summary of over 27,000 responses

The consultation received more than 27,000 responses, including from over 250 business bodies.

As part of the response, Logistics UK's CEO David Wells OBE joined a host of the sector's most prominent figures (including Amazon, Heathrow Airport and Tesco Stores) in producing a letter which outlined the importance of logistics to the UK’s growth-driving sectors.

The letter - sent to Business and Trade Secretary Jonathan Reynolds MP - urged him to ensure that the logistics industry is made a cornerstone of the government’s Industrial Strategy, which is set to be published in the coming months.

Led by Logistics UK, the 30 businesses advovated that Mr Reynolds acknowledge the critical role that effective supply chains play in all parts of the economy, including the growth-driving sectors already recognised by the government.

The business leaders are clear that making the transportation of goods more efficient is fundamental to growth across the whole economy, and that the logistics sector must therefore have a voice in the development of future economic plans by being represented on the new Industrial Strategy Council.

David Wells OBE, Chief Executive of Logistics UK said: “Nothing in the economy moves without logistics: it provides our hospitals, schools, factories and shops with everything they need, everywhere, every day.

"Our sector must be recognised as a key partner in the government’s economic and business growth plans. Otherwise, the plan for growth will be set up to fail before it even starts.

"The government’s Industrial Strategy Green Paper rightly introduces the concept of ‘foundational sectors’ that provide critical inputs and infrastructure to our growth-driving sectors, and the case for recognising logistics as such a sector is undeniable.”

The DBT says the responses highlight key investment barriers and opportunities:

•          Infrastructure was the most frequently cited barrier to investment: businesses highlighted slow planning approvals, ageing infrastructure and grid capacity issues, with these being a particular barrier to clean energy industries, advanced manufacturing, and professional & business services.

•          Energy costs and grid delays: high electricity prices and long grid connection wait times were cited as major investment deterrents. The UK was identified as one of the least competitive nations in energy pricing, with planning and permitting delays further slowing upgrades and clean energy deployment. Such barriers were cited as inhibiting clean energy industries, advanced manufacturing and defence, in particular.

•          Skills shortages: recruitment and retention challenges were a dominant theme, and businesses called for apprenticeship reform, more funding for training, and better alignment between industry needs and education providers.

•          Trade and supply chain pressures: businesses flagged concerns over fragmented domestic supply chains, reliance on imports for key materials, and increased trade barriers. International conflict, shipping disruptions and regulatory complexity were highlighted as risks. Strengthening partnerships with key markets, such as the US and EU, was seen as vital to improving trade stability. Supply chain issues were some of the most frequently cited barriers for clean energy industries, defence and digital & technologies, in particular.

•          Investment and innovation. Businesses raised issues around access to external finance and government funding, particularly for SMEs, which hinders the ability to invest in research and development, commercialise innovation and secure growth capital. Other barriers to innovation include data silos and lack of standardisation of data, frequent changes in regulations and a lack of clarity on policy direction.

•          Place-based growth: responses underlined broad support but emphasised the need to align national priorities with the local growth plans.

Many responses expressed frustration about the complexity and inconsistency of business-government interactions, and uncertainty about government policy. The DBT document says that “a more streamlined, transparent and collaborative relationship, with specialised contact points that coordinate across government to share insights, would avoid the need for businesses to ‘go round the houses’ on the same subject”.

DBT is undertaking detailed policy design until the end of April. This includes “work on foundational areas of the economy needed for resilient supply chains.”

Between May and July, the DBT will work on plan finalisation and implementation, with the publication of the Industrial Strategy and eight growth-driving sector plans aligning with the forthcoming Spending Review. The Industrial Strategy Advisory Council will play a key role in reviewing the strategy and ensuring long-term impact.

Read Logistics UK's full response here.

Published On: 20/03/2025 14:27:06

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