Government’s cuts to infrastructure spending pose a challenge to the logistics sector’s role in economic recovery.
- Chancellor of the Exchequer announced cutting £1bn from transport projects, impacting key infrastructure plans.
- Logistics UK warns that lack of investment in infrastructure hampers economic growth and supply chain efficiency.
- Positive note from Logistics UK with plans for French border officers to manage passengers at Dover’s Western Docks.
- Concerns about readiness of new border system could lead to delays, affecting supply chain and economic stability.
The recent announcement by the Chancellor of the Exchequer to reduce infrastructure spending by £1bn, specifically affecting transport projects, raises significant concerns within the logistics sector. These include the cancellation of essential projects such as the planned tunnel under Stonehenge on the A303 and the upgrade of the A27. Logistics UK asserts that such cuts will directly hinder economic growth by disrupting smooth goods delivery across the country. The organisation underscores the central role logistics play, not just in delivery, but in bolstering the entire economy by ensuring seamless supply chains.
Kevin Green, Logistics UK’s policy director, stresses the historical neglect of infrastructure investment and its adverse effects on sector efficiency. He argues that re-prioritising critical projects like the A303 improvements and rail freight capacity expansion is vital. The logistics sector is poised to drive economic recovery, yet requires these infrastructure investments to fulfil its potential. Green acknowledges fiscal constraints but warns that ignoring logistics benefits could stifle growth when momentum is needed most.
In a separate development, Logistics UK cautiously welcomed the government’s steps to ease congestion at the Port of Dover, a crucial gateway for UK-EU trade. This involves enabling French border officials to process passengers ahead of the EU’s Entry Exit System (EES) introduction. The organisation appreciates efforts to address a significant bottleneck, given that a substantial portion of UK’s imported food passes through Dover.
However, Nichola Mallon, Logistics UK’s head of trade and devolved policy, highlights that the EES is not yet fully prepared. She expresses concerns about potential delays without a phased implementation and proper app or web-based registration similar to modern online check-ins. Mallon urges the government to share insights and strategies with logistics partners to mitigate border disruptions effectively.
The need for a Logistics Minister and further support for the sector remains a critical point of advocacy. The UK Warehousing Association calls for reforms in commercial rooftop solar power and apprenticeship programmes, reinforcing logistics as a crucial component of national industrial strategies. Underpinning economic growth, logistics requires acknowledgment in government planning to address current challenges efficiently.
Government spending cuts present substantial hurdles for the logistics sector’s potential to support economic growth.
