Logistics is key for making Spending Review pledges a reality, says Logistics UK

Wednesday 11 June 2025

Today’s (11 June) Spending Review is welcomed in principle by business group Logistics UK, but, as Kevin Green, Policy Director explains, the government’s growth ambitions will only be realised if it prioritises the needs of the logistics sector in its forthcoming Industrial, Trade and Infrastructure strategies:

“Nothing, including the economy, moves without logistics. It underpins every sector that our communities and businesses rely on, every day – from keeping the shelves stocked to managing supply chains. It is what turns building sites into houses, houses into homes and homes into communities where people can live and work.

“The Spending Review makes some bold pledges for transport, power generation, defence, healthcare and home building, with transport capital investment to rise 3.9% across the Spending Review period. To turn these pledges into economic growth, it is vital that the government prioritises the logistics sector through the upcoming Industrial, Trade and Infrastructure Strategies – both by providing the infrastructure our sector needs to move goods efficiently, and by enabling our sector to efficiently deliver the country’s renewal that the Chancellor has committed to. It is why 30 Chief Executives of some of the UK’s biggest businesses recently wrote to Jonathan Reynolds, requesting that logistics is included as a foundational sector in the forthcoming Industrial Strategy.

“While we welcome the Spending Review in principle, we, along with our members, are making clear to the Chancellor that this investment cannot be funded by higher taxation on hard-pressed businesses. Increases in employers’ National Insurance Contributions are costing our sector an estimated £1.7 billion, and our members simply cannot afford any more whether this is through fuel duty or other business taxes. It is SMEs that power the UK economy and they will be forced to pass on any cost increases which will drive inflation and hamper growth.”

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, 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. For more information about the organisation and its work, please visit logistics.org.uk