The Labour government’s budget and its lack of support for the country’s supply chain proves the need for a logistics minister, the UK Warehousing Association (UKWA) argued this week.

UKWA, along with RHA and Logistics UK, has long campaigned for a logistics minister, but their call has so far fallen on deaf ears.

The association said this week that the Labour government’s budget shows a lack of understanding of the importance of the supply chain to the economy and Labour’s plans for growth. 

Whilst the UKWA has welcomed budgetary plans for major infrastructure improvements, it said it had failed to factor in the increased pressure on supply chains this strategy will create.

The association is now calling for additional support for the sector, following the latest budget.

UKWA chief executive Clare Bottle (pictured) said: “While we welcome the government’s commitment to major growth-related projects, including massive investment in rebuilding the NHS, additional funding for the HS2 London Link, £1.4bn to rebuild 500 schools and £5bn for housebuilding, it is frustrating in the extreme that 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.”

UKWA said government plans to significantly boost planning officer numbers was “very encouraging”, as well as its commitment to invest £240m in Trailblazer projects aimed at getting people into work. 

However the association expressed concern that while there will be business rate relief for retail, hospitality and leisure businesses, there is none 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,” Bottle said. “Finally, the double whammy of increasing employers’ National Insurance 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!”

 

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