Strategic infrastructure projects are vital to driving growth, says Logistics UK

Wednesday 29 January 2025

The government’s support for nationally significant infrastructure projects, including Heathrow’s third runway and the Lower Thames Crossing, is the type of government action industry has been urging for a long time, according to Logistics UK, one of the biggest business groups in the UK. Speaking in Oxford after the Chancellor’s speech, David Wells OBE, the group’s Chief Executive, explained how vital it is that these projects are now progressed at pace to ensure that the country’s economy gets the boost it needs:  

“Today’s announcement represents an intention which will be welcomed by our member businesses, but the proof of the pudding will be in the speed at which planning decisions are taken and projects delivered, which will be critical to the success of the Chancellor’s plan. 

“If nationally important projects like the Lower Thames Crossing and third runway at Heathrow become a reality, we can deliver goods more efficiently across the country, benefitting everyone nationwide. The Lower Thames Crossing is vital for connecting businesses across the whole of the UK with Europe and must be delivered to address the country’s overreliance on the congested Dartford Crossing. Heathrow is the UK’s biggest port by value, and a critical hub which provides access to the rest of the UK and the world for British business – the opening of a third runway will expand the reach of industry to new global markets both for imports and exports.” 

Wells continues: “Logistics is fundamental to our economy, our way of life, and growth. It supplies our hospitals, schools, factories and shops with everything they need, everywhere, every day. Nothing moves without logistics. So efficient logistics is critical to growth and therefore needs to be at the centre of the government’s Industrial Strategy. 

“But logistics in the UK is getting 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 – primarily because of congestion and delays, friction at our borders, and a lack of infrastructure investment. 

“If we make the right investments, to get back to 4th in the World Bank index, Oxford Economics suggests that would turbocharge growth across the whole economy. It is critical that logistics has a place on the government’s Industrial Strategy Council to ensure our industry can provide the engine for future economic growth. Our sector stands ready to drive the economy to the next level, providing the infrastructure exists to enable us to do so.” 

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.