Logistics UK has expressed concern over the exclusion of logistics from the UK’s new industrial strategy.
- Logistics is fundamental to the success of the eight sectors identified in the strategy.
- Government has launched a green paper, Invest 2035, but logistics is not highlighted as a key growth sector.
- Michelle Gardner emphasises logistics’ potential to boost the UK’s GDP by £7.9bn annually by 2030.
- Logistics UK urges involvement in the Industrial Strategy Forum and Council to maximise economic benefits.
Logistics UK, a prominent industry body, has voiced strong concerns following the release of the UK government’s new industrial strategy, which notably omits the logistics sector from its list of key growth-driving industries. This exclusion comes despite the sector’s critical role in underpinning all eight of the recognised sectors, as stated in the newly published green paper, Invest 2035: The UK’s Modern Industrial Strategy.
The strategy, introduced by Chancellor of the Exchequer, Rachel Reeves, outlines the government’s focus on sectors anticipated to yield substantial economic growth, such as advanced manufacturing and clean energy industries. However, the absence of logistics as one of these sectors has raised questions, given its integral part in the supply chain and infrastructure necessary for these industries to thrive.
Michelle Gardner, deputy director of policy at Logistics UK, highlighted the dependence of the identified growth sectors on efficient logistics services. She argued that the economy’s productivity and the efficiency of logistics are tightly interlinked. Enhanced investment and strategic policy changes could result in a significant £7.9bn annual boost to the UK’s GDP by 2030, underscoring the sector’s potential to drive economic growth.
Gardner also responded to the establishment of an Industrial Strategy Forum and Council, suggesting that Logistics UK is well-positioned to contribute to these discussions. She emphasised the importance of logistics in areas such as infrastructure and regulatory reform, thereby ensuring that the sector’s strategic advantages are fully realised within the broader economic framework.
Additionally, Logistics UK is pressing for the inclusion of a Logistics Minister in the new government’s lineup to address sector-specific challenges and opportunities comprehensively. While the Labour government has yet to appoint such a position, the proposal reflects the strategic importance the industry places on having governmental representation dedicated to its cause.
The pivotal role of logistics in economic strategy remains undeniable, demanding prioritisation in governmental policies.
