Following the General Election, a cross-party government group has been reformed to emphasise the vital role of the UK's freight and logistics sector in supporting the national economy. The All-Party Parliamentary Group (APPG) for Freight and Logistics unites parliamentarians and industry stakeholders nationwide.
The group will highlight the benefits of freight and logistics to people's daily lives and showcase the sector's broader contributions.
At the group's first meeting, Lilian Greenwood MP, the Minister for the Future of Roads, spoke about the central role of road freight in the Government's economic growth plans. She emphasised the sector's importance in reliably moving goods across the UK and enabling growth.
Greenwood also addressed key industry challenges, such as the forthcoming Entry Exit System changes at ports, inadequate driver facilities, a lack of diversity in the workforce, and restrictive planning policies.
Rachel Taylor MP is the chair of the reformed APPG. Other officers include Andrew Pakes MP, Lord Taylor of Holbeach, and Richard Holden MP. The group saw a record turnout, with 15 MPs attending the first meeting and 40 members overall.
The APPG's agenda for the coming year includes discussions on driver welfare, diversity, international issues, and progress toward net-zero emissions. It will also report on freight crime and launch a driver welfare campaign soon.
Taylor commented: "Collaboration across parties is essential to address issues like freight crime, worker needs, and insolvency. Logistics plays a crucial role in my constituency, and I look forward to advocating for local businesses and the broader industry during this Parliament."
The logistics sector calls for support
In March this year, eleven of the UK's leading logistics trade associations cosigned a letter delivered to the leaders of the UK's and devolved nations' main political parties. The letter highlighted the UK's freight and logistics sector's pivotal role in enhancing growth and productivity, provided it is supported by the right policies and a dedicated minister with Cabinet Office backing to drive coordination across Whitehall.
The letter, signed by Claire Bottle, Chief Executive of the UK Warehousing Association, and David Wells OBE, Chief Executive of Logistics UK, were just two of the 11 signatories. It said, 'To boost growth and productivity, the UK must prioritise the logistics sector.'
The letter also explained that the logistics sector is the backbone of the economy, contributing £163 billion in Gross Value Added (GVA) and substantially contributing to UK tax revenues. According to industry associations, this includes £5 billion from Fuel Duty and Vehicle Excise Duty alone.
The letter advocated for the appointment of a dedicated Logistics Minister and pushed for coordinated action across crucial policy areas such as planning and infrastructure, sustainability and decarbonisation, skills development, and trade growth. Leaders of the UK's major logistics trade associations emphasised that these areas are crucial for ensuring efficient, sustainable, and safe logistics operations.
They highlighted that the agility of the logistics sector is hindered by a planning system that is deemed "not fit for purpose." According to a 2022 Savills report, the UK planning system has already suppressed growth in the industrial and logistics sector by 29%.
Carbon net zero goals
The logistics sector is inherently a significant energy consumer. However, it is actively rising to the challenge of achieving net zero by adopting sustainable energy sources in distribution centres, electrifying vehicle fleets, and utilising greener fuels. In areas where the sector has direct control, progress has been swift—such as a nearly 10% reduction in energy usage in temperature-controlled warehouses and 90% energy savings in some refrigeration units. Yet, critical decisions on energy infrastructure and fuels from the Government are needed to avoid missing net-zero targets.
A new partnership is essential to positioning the UK as a global leader in logistics sustainability. Sustainability must be a key priority in the long term, with decarbonisation being incentivised to encourage the adoption of low-carbon fuels and investment in new vehicles and fuelling and charging facilities.
Skills shortages need addressing
Increased skills training is also vital, and the associations have asked that the Apprenticeship Levy be revised so it can be invested in other forms of training, recognising that many skilled jobs in this sector do not require an apprenticeship. Additional courses have been requested, including a new T-Level in Logistics and increasing the number of logistics-related Skills Bootcamps.
"To boost growth and productivity, the UK must prioritise the logistics sector. We want to work in partnership to take the UK forward and urge you to meet with us to discuss how".