The UK Warehousing Association (UKWA) emphasises the urgent need for a dedicated logistics minister, highlighting the government’s lack of awareness regarding the supply chain’s significance.
- UKWA critiques the Labour government’s budget for insufficiently addressing the demands of the logistics sector, despite infrastructure investment plans.
- The association acknowledges proposed infrastructure investments but warns of increased pressures on supply chains.
- Concerns rise over overlooked warehousing sector, with no business rate relief provided, unlike retail and hospitality.
- An increase in National Insurance burdens warehouse operators, adding to the sector’s challenges.
The UK Warehousing Association (UKWA) has reiterated its call for the appointment of a logistics minister, arguing that the current government budget demonstrates a lack of understanding of the logistics industry’s crucial role in economic growth. Despite campaigning alongside other industry bodies, the need for a dedicated minister has been persistently ignored.
In the recent government budget, while there are plans for major infrastructure projects like NHS rebuilds and school investments, UKWA points out that the resulting strain on supply chains has not been considered. The association argues that any successful project depends on efficient and well-connected supply chains, a factor seemingly disregarded in current budget allocations.
Clare Bottle, UKWA’s chief executive, expressed frustration over the lack of recognition and funding for warehousing, essential for transporting and storing necessary materials for projects ranging from building infrastructures to medical supplies. Without proper acknowledgment of this, logistical challenges are likely to grow.
The government’s approach to increasing planning officer numbers and investing £240m in Trailblazer projects is seen as promising. However, UKWA is dismayed by the absence of business rates relief for warehousing, which they see as unfair compared to other sectors like retail and hospitality that benefit from such reliefs.
Furthermore, the planned hike in employers’ National Insurance, coupled with a reduction in the threshold for its payment, is anticipated to hit warehouse operators particularly hard, compounding their operational challenges. The budget thus accentuates the necessity for a logistics minister to advocate for the industry’s interests effectively.
The UK’s logistics sector continues to struggle with inadequate governmental support, underscoring the urgent call for a logistics minister.
