Role of UK warehouses ignored in budget, association warns

The role of warehouses has 'neither been understood nor acknowledged'

UK Warehousing Association (UKWA) has expressed 'grave concern' that the Government’s commitment to major infrastructure improvements has not factored in the increased pressure on supply chains.

The warehousing sector will necessarily take the strain, the body says, but it asks 'where is the additional support from Government?'

In this article, UKWA Chief Clare Bottle says the role of supply chains – particularly warehouses – have neither been understood nor acknowledged, let alone helped with funding.

"From building materials to hospital beds and scanners, all will all require a functional supply chain for transport, storage and delivery

"Successful infrastructure projects depend on efficient, well connected supply chains. While the budget has announced funding for road and rail, yet again warehousing has been overlooked.

"We had hoped that the new Government would recognise that logistics is the fundamental backbone to growth of the UK economy and listen to our key ‘asks’. However, from that point of view, this budget feels like ‘déjà vu’.

"The announcement of hundreds of new planning officers is very encouraging, as is the Government’s commitment to £240m investment in Trailblazer projects aimed at getting people into work.

"Warehousing has long faced challenges with labour and skills shortages, and UKWA has been closely involved with Trailblazers in the past.

"We await further details, but hope our sector is included in plans and will benefit from this funding opportunity.

"On Business Rates, we note that there will be relief for retail, hospitality and leisure businesses, but not for warehousing.

"This is deeply disappointing as the basis for rating assessment of warehouses is intrinsically unfair, and we will continue to make this clear to policymakers.

"Finally, the ‘double whammy’ of increasing employers’ National Insurance (NI) by 1.2% (which was expected) and reducing the threshold at which employers pay it from £9,100 to £5,000 (not expected), will hit warehouse operators hard, along with most other industries.

"In summary, we support the capital investment plans outlined today by the Chancellor but believe that without investment in the supporting supply chains, successful delivery of such huge infrastructure projects is compromised.

"This budget simply goes to prove we need a Logistics Minister.”