Heidi Alexander was appointed as the transport secretary on 29 November (Gov.uk)
Heidi Alexander, the new transport secretary, must back British logistics to support the country's growth missions, Logistics UK has said.
Following the resignation of Transport Secretary Louise Haigh, Logistics UK says the incoming Secretary of State must seize the opportunity to drive Labour’s growth mission.
It says the government must prioritise logistics and acknowledge its foundational role in the economy.
Logistics UK Chief Executive David Wells OBE outlines the opportunity, “Logistics is fundamental to our economy, our way of life and the nation’s prosperity.
"Nothing moves without logistics: it supplies our hospitals, schools, factories and shops with everything they need, everywhere, everyday."
The sector contributes £185 billon to the economy every year and employs 8% of the UK workforce.
Research from Oxford Economics shows that by establishing the right partnerships, regulations and investment for logistics, the government can deliver productivity gains that will boost the UK economy by up to £8 billion per year by 20301.
But congestion and delays, friction at borders, and a lack of public investment over time is making UK logistics less efficient.
The World Bank Logistics Productivity Index shows that the UK has slipped from 4th in the world to 19th in the last 10 years.
Mr Wells says: “Frustratingly, by appointing herself ‘Passenger in Chief’ Louise Haigh failed to recognise the role of commercial transport in delivering the government’s top growth mission, or how to leverage logistics and supply chains to achieve this.
"The vision for the Integrated National Transport Strategy was not integrated as it did not include logistics, a major user and provider of our transport networks."
Logistics UK says Ms Alexander has a huge opportunity to address the decline in logistics productivity, drive growth and secure the sector’s place in the forthcoming Industrial Strategy.
This includes through a genuinely integrated transport strategy that meets the needs of the travelling public while facilitating the efficient movement of freight.
Mr Wells concludes: “Logistics UK has identified the key transport corridors and critical routes for investment.
"[We are] pressing the Treasury and the Department for Transport to better identify the UK’s strategic logistics network, and use this as the basis of a 30-year infrastructure strategy for freight to turbocharge growth across the whole economy.”