Dedicated Logistics and Supply Chain Minister demanded by Logistics UK from next government to drive economic growth

Wednesday 22 May 2024

As the Prime Minister Rishi Sunak MP announced the General Election will be held on 4 July 2024, business group Logistics UK urged all political parties to include the organisation’s call for the appointment of a Minister for Logistics and Supply Chain by the UK’s next government in their election manifestos, if future growth is to be driven across the whole economy.

Chief Executive David Wells OBE stressed that focusing on investment and growth in the logistics industry would bring dividends for the UK’s whole economy.

“Whether manufacturing or retail, healthcare or education, every part of our economy relies upon logistics to provide all the goods needed to generate business and growth,” explained Mr Wells. “Innovative, integrated infrastructure backed by a national logistics network will deliver efficiencies and opportunities that can benefit us all. Giving logistics a voice at the heart of government would ensure that the needs of industry and business are heard, and that our sector can work with government to drive up the country’s productivity.

Logistics UK launched its new manifesto earlier this year, endorsed by senior leaders from across the sector, alongside publishing new survey data showing fewer than a third of adults think the government is doing enough to support this vital sector. The Ipsos survey* of over 2,000 adults reveals that four in five adults agree that the strength of the UK's economy depends on having an efficient logistics sector that delivers goods in a timely and cost-effective way. The survey also shows that the UK public believes growing the economy and creating jobs should be the government's top priority around policies for logistics, followed by keeping the costs of goods down for customers.

“The public understands how vital logistics is and, rightly, does not think the government is doing enough to support the industry,” continued Wells. “Our sector, which services every part of the UK’s economy, would deliver up to £7.9 billion per year in productivity-led growth if backed by the right government policies, as well as creating jobs and trading opportunities both domestically and overseas.

“The establishment of a cross-Whitehall Logistics Productivity Forum, led by a dedicated logistics and supply chain government minister, would ensure that benefits from our sector can be delivered to the whole economy.”

Logistics UK’s Manifesto 2024 Unleashing the power of logistics to drive growth across the whole economy has already been distributed to all political parties, with the request that its policy proposals be incorporated into the parties’ own manifestos as they begin campaigning. In addition to the appointment of a new minister, the sector – which contributes more than £160 billion pa to the UK’s economy, is pressing politicians to establish key measures including:

• Skills partnerships and reforms to funding models to ensure a continued pipeline of talent is attracted into the sector, with continued support for the successful Generation Logistics campaign which focuses on raising awareness of the opportunities the sector offers.
• Innovative and integrated infrastructure, backed by investment in a national logistics network.
• A fair transition to a green economy, underpinned by an agreed roadmap to net zero, depending on the availability of technology, infrastructure investment, regulatory reform and tax incentives.
• Backing for trade as a driver of innovation and productivity, with reduced border friction through new and expanded trading relationships with Europe and the rest of the world.

As the logistics industry continues to face inflationary pressures, Mr Wells confirmed that a key priority for the sector will remain the ability to keep costs down and stable, especially as it increases investment in the transition to green technologies.

“Logistics businesses operate on particularly narrow margins, with limited funds currently available for investment in new technologies,” he continues. “We continue to press for a dynamic mechanism for Fuel Duty to be introduced, with tax incentives for the use and production of alternative low carbon fuels, to keep business costs down and ensure that the sector can invest effectively in a green future.”

To find out more about the asks of the logistics sector, the full Logistics UK 2024 Manifesto can be found at https://logistics.org.uk/research-hub/policies/logistics-uk-2024-manifesto

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, sea 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.   

ENDS       

*Technical Note: Logistics UK commissioned an online omnibus poll from Ipsos UK, conducted between 8 and 12 December 2023, among 2,183 adults aged 18-75 across the United Kingdom. A quota sampling methodology was applied to ensure that results are representative of UK adults aged 18-75 in terms of gender, age and geographical location. Data were then weighted to the known population of UK adults 18-75 to further ensure they are representative.