As the UK approaches 2025, the business group Logistics UK is advocating for a government policy environment that can bolster the logistics sector and stimulate broader economic growth across the nation. According to Logistics UK, the correct partnerships, regulations, and investments in logistics could lead to productivity gains potentially boosting the UK economy by up to £8 billion annually by 2030. Given that logistics is a foundational sector of the UK economy, the organisation stresses the urgency of addressing several pressing needs. These include reducing trade friction, upgrading infrastructure, facilitating a fair path to decarbonisation, and enhancing the skills workforce within the sector.
One paramount concern for the industry remains the need for stable trade conditions, particularly in the context of evolving border regulations. The year 2024 marked a transformative period for the UK's border operations, marked by the introduction of new procedures derived from Brexit, including the Border Target Operating Model (BTOM) and the Windsor Framework. However, frequent alterations to deadlines and processes have financially strained the industry and undermined confidence amongst stakeholders regarding their operational capabilities. Logistics UK has expressed a pressing need for the government to furnish clarity on the upcoming changes to BTOM and the European Union’s new Entry/Exit System (EES), which will be fully implemented in 2025. "The government must provide clarity and the detail the industry needs to plan and adapt to meet these new trading requirements," said a spokesperson from Logistics UK, highlighting the importance of reassuring customers and safeguarding the supply chain.
The establishment of a National Freight Network (NFN) is another critical objective highlighted by Logistics UK. The organisation urges the government to prioritise this initiative, pointing out that the previous administration had committed to collaborating with the freight sector to develop such a network. Members of Logistics UK have identified crucial transport corridors and routes requiring investment, and they are actively urging the Treasury and the Department for Transport to employ recent research for the identification of the UK’s Logistics Network, thereby laying the foundation for a 30-year infrastructure strategy.
In terms of sustainability, the logistics sector is actively engaging with the challenge of achieving net zero emissions. Logistics UK asserts that a collaboratively developed sustainability and decarbonisation roadmap is essential for positioning the UK as a global leader in logistics sustainability. The organisation notes that logistics encompasses various modes of transport and diverse infrastructure, suggesting that a multi-faceted approach is necessary for a significant transition to net zero without damaging cost efficiencies for customers or compromising the resilience of supply chains.
Lastly, with ongoing skills shortages in concentrated fields, such as vehicle technicians, the need for government support in cultivating a skilled workforce remains paramount. In response, the Generation Logistics campaign, inaugurated in 2022, seeks to attract new talent into the logistics sector. This initiative, undertaken in partnership with the government, Logistics UK, the Chartered Institute of Logistics and Transport (CILT UK), and over 40 industry companies, has already reported a 140% increase in positive perceptions of logistics careers after its first year. Logistics UK is calling upon the government to renew its commitment to funding and support for this initiative to ensure a continued influx of talent into the sector.
As the UK navigates these significant changes and challenges in the logistics landscape, the emphasis placed on supportive policy frameworks by Logistics UK reflects a concerted effort to optimise the sector’s contributions to the economy and sustainability goals moving forward.
Source: Noah Wire Services