Logistics UK warns government spending cuts will ‘limit ability to kickstart growth’

Cuts in infrastructure spending proposed by the new government will limit the ability of the logistics sector to kickstart economic growth, business group Logistics UK has claimed.

According to the logistics trade body, there are more than seven million people directly employed in the making, selling and moving of goods and cutting costs could slow growth in the sector.

The group says that logistics has never been more important to the UK economy, especially with decarbonisation, Brexit, new technology and other disruptive forces driving change in the way goods move across international borders and through the UK supply chain.

Policy director Kevin Green said that the lack of focus on infrastructure spending could hamper economic growth: “For too long, investment in improving the UK’s infrastructure has been overlooked, making it more challenging for goods to be delivered to their customers.”

He spoke after the announcement of spending cuts in key infrastructure projects by Chancellor Rachel Reeves.

Green continued: “Logistics underpins every sector of the economy and, as such, is ideally placed to help the new government get growth moving again.

“However, to do that, it is imperative that key infrastructure projects like the planned A303 improvements and investment in rail freight capacity are reprioritised to keep goods flowing through the supply chain across the country and enable our industry to play its part in getting the economy back on track.”

He explained: “Our members appreciate that the books have to be balanced but ignoring the opportunities that logistics can create will hamper growth at a time when our sector stands ready to kick-start recovery across the economy.”