Invest in trade and borders to make UK great again, says Logistics UK

Friday 07 February 2025

The UK’s Trade Strategy needs to deliver investment in an efficiently functioning border to support the nation’s trade in goods if the economy is to grow and flourish, according to business group Logistics UK. Speaking after the organisation, which represents all areas of the logistics industry, submitted the sector’s priorities to the UK Treasury for consideration as part of the upcoming government Spending Review, Kevin Green, the business’ Policy Director, was adamant that investment in the nation’s borders would help to build trade and drive growth, and urged the government to take action: 

“Nothing in the economy moves without logistics,” he said, “but at present our member businesses – which move and deliver all the goods the country needs, every day – are being let down by delays and disruption at the border which hinder the nation’s supply chain from operating effectively. Our industry needs and deserves to be able to operate unencumbered by bureaucracy and traffic congestion to deliver for the economy.

“We are urging government to develop, thoroughly test and introduce a Single Trade Window (STW) for the UK. In effect this would enable a one border portal which would align with international systems, to remove the bureaucratic and cost burden that businesses now face as a result of the UK’s departure from the EU. Trade bureaucracy and related traffic congestion are adding time, cost and inconvenience to every transaction, dissuading British businesses from exporting their products, making it harder for them to secure their supply chains and, overall, making this country a less appealing place to do business in and trade with.” 

As Green continued, despite the financial constraints currently faced by government, the development of the Single Trade Window cannot be delayed if the benefits of goods trade are to be felt across the whole economy. “We are all aware of the fiscal pressures faced by the government, but to suspend work on the STW as happened in November 2024 is a false economy in the eyes of our members. The government has acknowledged that border friction with the EU is holding the economy back, and needs to do something about it. Britain has always been a trading nation, and relies on the swift and smooth movement of everything from food and medicines to advanced manufactured products to keep the economy buoyant. However, research by MDS Transmodal has shown that the UK’s importance for the EU as a trading partner has already dropped between 2017 and 2022, and the country now exports less to our nearest neighbours compared with other countries that export to the EU.  

“Delays at the border, including customs inspections and charges, have also made a significant contribution to the UK’s decline in the World Bank’s Logistics Performance Index (LPI), which shows the nation has dropped from fourth in 2014 to 19th in 2023. With inefficient customs processes and lack of timely deliveries reducing confidence and commitment to our sector, it is beholden on the government to stem this decline and invest in border infrastructure to ensure that our industry can continue to drive the recovery of the UK’s businesses, and the economy as a whole.” 

Border processes are just one of the areas outlined by Logistics UK in its submission to the UK Treasury ahead of the government’s Spending Review which, according to logistics businesses, need urgent investment if the country’s trade is to flourish and grow: 

“For too long, our sector has been hamstrung by a lack of investment which has seen our domestic infrastructure crumble and focus on the next generation of the workforce stall. We appreciate that there are many difficult spending decisions to be made, but if the government is serious about getting growth going again, it is vital that the asks of our members are prioritised. Without this, we will struggle to help galvanise and grow the economy as our members believe we can.” 

Logistics UK is one of the UK’s biggest 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.