Government cuts in infrastructure spending announced today (29 July) will limit the ability of the logistics sector to kick-start economic growth, industry group Logistics UKis warning.

Announcing a range of funding cuts, Chancellor of the Exchequer Rachel Reeves (pictured) cited £1bn of unfunded transport projects,which she said would undergo a “thorough review”, and confirmed the planned tunnel for the A303, which was to be built under Stonehenge, along with a scheme to upgrade the A27 would be scrapped.

Speaking after Reeves’ announcement, Logistics UK 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 said.

”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 re-prioritised 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. 

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

On a more positive note, Logistics UK gave a qualified welcome to government plans - also announced today - which will enable French border officials to process passengers at the expanded Western Docks in the Port of Dover, ahead of the planned autumn introduction of the EU’s Entry Exit System (EES).

Nichola Mallon, Logistics UK head of trade and devolved policy, said: ”The Short Straits is a critical UK-EU supply chain route and anything that helps ease congestion at the Port of Dover is to be welcomed.

”A quarter of all food imported into the UK from the EU passes through the Port of Dover and Eurotunnel, and delays at the border have knock-on effects which can disrupt supply chains nationwide.”

However, she raised concerns that the new system is not ready and needs additional refinements, without which, she warned, queues will be inevitable.

She explained: ”The increase in the border zone area will help with the flow of traffic within the port, but with the system set to be rolled out without the availability of an app or web-based registration system, similar to “online check-in” which everyone is familiar with nowadays, queues and delays at peak periods are inevitable.

”It is now critical that the government does all it can to secure a phased approach to the planned implementation of EES this autumn, and that industry gets clarity on what mitigations will be put in place to reduce congestion and disruption. The industry also needs confirmation on the date when the registration app will be ready and rolled out.

 She also called for the government to heed calls from the logistics industry for it to share its data analysis and scenario modelling with key strategic partners ”as an urgent priority”.

”This will enable partners on the ground and industry to coordinate planning and response efforts, and government must provide sufficient resources to flex up the response as needed so that the nation’s supply chains are protected,” she added.

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