Logistics UK said it was encouraged by measures to incentivise regional mayors to support the industry by overhauling the funding system for local and regional government.
Published alongside the Budget, the Fiscal Devolution Roadmap is the government’s plan to move away from central government holding the purse strings and focus powers and funding closer to regional decision makers.
The government said that from April 2028, a proportion of income tax will go to local mayors to invest in infrastructure and grow their local economy.
“The long-term certainty that comes from access to tax revenues will enable mayors to invest more in projects that create the conditions for businesses to succeed and for local economies to grow,” said Dan Tomlinson, exchequer secretary to the Treasury.
“As this happens, and the amount of tax receipts locally increases, local areas will benefit from their mayors having more resources to go further.”
Tomlinson added that from next year, mayors would be given a share of locally retained business rates, which would increase in line with inflation and they would also benefit from 20% of any growth in business rates generated in their region.
Logistics UK chief executive Ben Fletcher welcomed the move: “Mayoral strategic authorities will be permitted to borrow to invest in transport and infrastructure, which should help unlock investment and support the development of the support networks, skills and industrial clusters that businesses need to thrive,” he said.
“As an industry with operations in every corner of the country, logistics stands ready to help local and national government turn these ambitions into tangible economic growth.”
