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Logistics UK joins 30-strong group of business leaders in letter to Trade Secretary ahead of Industrial Strategy  


Logistics UK's CEO David Wells OBE has joined a host of the sector's most prominent figures in outlining the importance of logistics to the UK’s growth-driving sectors.

The leaders of 30 prominent UK businesses have signed a letter to Business and Trade Secretary Jonathan Reynolds MP, urging 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, which include Amazon, Heathrow Airport and Tesco Stores, are urging Mr Reynolds to 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.   

“Nothing in the economy moves without logistics: it provides our hospitals, schools, factories and shops with everything they need, everywhere, every day,” says David Wells OBE, Chief Executive of Logistics UK which co-ordinated the approach to Mr Reynolds, “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.”

“Effective logistics is the foundation of any successful economic activity, whatever the industry,” he continues. “To create an industrial strategy that does not improve the efficiency of the movement of goods would be a huge missed opportunity, and throttle growth in other sectors.

“The efficiency of logistics and the growth potential of the economy are completely intertwined. The World Bank’s Logistics Performance Index has seen the UK fall from 4th to 19th over the past decade, due largely to congestion and delays on our roads, friction at our borders, and a long-term lack of investment in our transport infrastructure.

"This puts the brakes on growth across the whole economy. But if we can reverse that trend, by making the right investments, then logistics can be a powerful force for growth.  Indeed, Oxford Economics has found that getting the policy and infrastructure environment right for logistics would unlock up to £8 billion a year in productivity-led growth. With Logistics UK on the Industrial Strategy Council, we would be able to advance a partnership between government and business to deliver growth across the whole economy.

“Recognising the important role that logistics must  play as a foundational sector in the forthcoming Industrial Strategy, with a voice on the Industrial Council, will enable our sector to achieve the maximum impact possible for the country, and ensure that we are all focused on driving the growth we know is possible for the UK, its businesses and its long term prosperity in the coming months and years.”

Signatories to the letter sent to Mr Reynolds this week are:

ADM Milling (UK) Ltd – Managing Director, Ashley Fuller

Amazon Logistics – Vice President, Kerry-Anne Lawlor

Ceva Logistics – Managing Director Contract Logistics UKIN, Huw Jenkins

DHL Supply Chain UK&I – CEO, Saul Resnick

DP World – Executive Vice President - Northern Europe, Mark Rosenberg

Evri Ltd – CEO, Martijn de Lange

Freightliner Group Ltd. – CEO, Tim Shoveller

Grid Smarter Cities – CEO, Neil Herron

GXO – Managing Director UK and Ireland, Gavin Williams

Heathrow Airport – Chief Executive, Thomas Woldbye

Howard Tenens Limited – Chief Executive Officer, Jamie Hartles

Indurent – Chief Executive Officer, Julian Carey

Kuehne + Nagel UK Ltd – Managing Director, Pamela Quinn

Logistics UK – Chief Executive, David Wells OBE

Maersk Logistics and Services UK Ltd – Managing Director, Gary Jeffreys

Maritime Transport Ltd – Deputy Chief Executive Officer, Tom Williams

NestlĂ© UK – Head of Logistics, Richard Hastings

Owens Group – Group Managing Director, Huw Owen

Palletways (UK) Limited – Managing Director, Robert Gittins

Port of Dover – Chief Executive, Doug Bannister

R Swains & Sons Limited – Finance Director, Stuart Rigby

Royal Mail – Chief Executive, Emma Gilthorpe

Rudolph and Hellmann Automotive Ltd – Chief Executive Officer, James Hamilton

Scania (Great Britain) Limited – Managing Director, Chris Newitt

Segro – Managing Director UK, James Craddock

Tesco Stores Ltd– UK CEO, Matthew Barnes

The Malcolm Group – CEO, Andrew Malcolm

TIP-Group – Managing Director for the UK & Ireland, Mike Furnival

Uniserve Group – Group Chief Commercial and Operating Officer, Gary Cobbing

Wincanton – Chief Executive Officer, James Wroath

Published On: 28/02/2025 12:28:30

 

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News In Brief

Updated definition of double cab pickups

As reported in Logistics UK's post-Budget enews extra on 31 October 2024, there are changes to the definition of double cab pickups that may affect members.

HM Revenue and Customs (HMRC) has updated what is considered to be a double cab pickup, to provide clarity on which vehicles are and are not subject to the changes coming in April 2025. The update confirms that HMRC is no longer aligning with VAT definitions around what constitutes a ‘car’ and ‘van’ in the context of double cab pickups.

Under the VAT approach double cab pickups are classified based on payload capacity, with anything under one tonne classified as a car, and anything a tonne and over as a van. Instead, classification will be based on the vehicle’s ‘primary suitability’.

Going forward, classification of double cab pickups (including variants such as extended, extra, king and super cab pickups etc) will therefore need to be determined by assessing the vehicle as a whole at the point that it is made available to determine whether the vehicle construction has a primary suitability as per the two-part test outlined at  EIM23115 onwards.

From 6 April 2025, most double cab pickups are expected to be classified as cars when calculating the benefit charge. This is because typically these vehicles are equally suited to convey passengers and goods and have no predominant suitability.

Full details are available here.

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