LSIP funding will support industry growth, says Logistics UK

Tuesday 14 November 2023

The £200 million of funding announced by the government today to create Local Skills Improvement Plans (LSIPs) is excellent news for logistics, providing the funding is allocated correctly, according to business group Logistics UK.

Speaking in response to today’s funding announcement, Jonathan Walker, Head of Cities and Infrastructure Policy, urged clarity from government and local organisations to maximise the impact of LSIPs on the industry moving forwards. 

“LSIPs have the potential to support the growth of the UK’s logistics sector – a sector which underpins every area of the economy. Employers have struggled to fill vacancies in a number of roles, including vehicle technicians and HGV drivers, for some time and it is imperative that any investment via these plans is targeted to ensure the skills gaps do not widen any further.

“With LSIPs focused on priority industries in their areas, Logistics UK is urging local and national stakeholders to consider the importance of logistics to all industries, regardless of whether it is considered a local priority sector in its own right. The figures released in today’s ONS survey back up the fact that logistics employers are struggling to fill vacancies, so logistics businesses need LSIPs to lead to local skills delivery as soon as possible.

However, as Mr Walker continues, the industry is already taking steps to address the shortage of qualified workers:

“The industry-backed Generation Logistics programme, supported by the government, continues to make strides in raising awareness for the sector, and we are delighted to see the enthusiasm which it is instilling within people to work within logistics. Combined with the new LSIP funding, I am confident that the number of young people entering careers within our sector will grow as we continue to gain more momentum for the programme. Logistics UK will continue to work with local partners to ensure that this new funding is allocated as efficiently and effectively as possible.”

Logistics UK is one of the UK’s leading business groups, representing logistics businesses which are vital to keeping the UK trading, and more than seven million people directly employed in the making, selling and moving of goods. With decarbonisation, Brexit, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc. Logistics UK supports, shapes and stands up for safe and efficient logistics, and is the only business group which represents the whole industry, with members from the road, rail, water and air industries, as well as the buyers of freight services such as retailers and manufacturers whose businesses depend on the efficient movement of goods.