New Transport Secretary must back logistics to support growth mission, says Logistics UK

Friday 29 November 2024

Following the resignation of Transport Secretary Louise Haigh, Logistics UK, one of the UK’s biggest business groups and the only organisation which represents all of logistics, says the incoming Secretary of State, Heidi Alexander MP, must seize the opportunity to drive Labour’s growth mission by prioritising logistics and acknowledging its foundational role in the economy. 

Logistics UK Chief Executive David Wells OBE outlines the opportunity, “Logistics is fundamental to our economy, our way of life and the nation’s prosperity. Nothing moves without logistics: it supplies our hospitals, schools, factories and shops with everything they need, everywhere, everyday. 

“The sector contributes £185 billon to the economy every year and employs 8% of the UK workforce, and research from Oxford Economics shows that by establishing the right partnerships, regulations and investment for logistics, the government can deliver productivity gains that will boost the UK economy by up to £8 billion per year by 2030*. 

“But congestion and delays, friction at our borders, and a lack of public investment over time is making UK logistics less efficient. The World Bank Logistics Productivity Index shows that the UK has slipped from 4th in the world to 19th in the last 10 years. 

“Frustratingly, by appointing herself ‘Passenger in Chief’ Louise Haigh failed to recognise the role of commercial transport in delivering the government’s top growth mission, or how to leverage logistics and supply chains to achieve this. The vision for the Integrated National Transport Strategy launched yesterday (28.11.2004), was not integrated as it did not include logistics, a major user and provider of our transport networks. Heidi Alexander as the new Secretary of State for Transport has a huge opportunity to address the decline in logistics productivity, drive growth and secure the sector’s place in the forthcoming Industrial Strategy, including through a genuinely integrated transport strategy that meets the needs of the travelling public while facilitating the efficient movement of freight. 

“Logistics UK has identified the key transport corridors and critical routes for investment and is pressing the Treasury and the Department for Transport to better identify the UK’s strategic logistics network, and use this as the basis of a 30-year infrastructure strategy for freight to turbocharge growth across the whole economy.” 

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. For more information about the organisation and its work, please get in touch - here.

ENDS 

Source: 

*Oxford Economics, Logistics: Delivering a solution to the UK's productivity puzzle, September 2023