Logistics UK is calling on the government to prioritise the logistics sector as a key foundation to economic growth, following the publication of the new government’s industrial strategy, which fails to list logistics in its list of eight growth-driving sectors.
The green paper, dubbed Invest 2035: The UK’s Modern Industrial Strategy, published last week, sets out Labour’s industrial strategy. It focuses on the sectors the government believes offer the highest growth opportunity for the economy and business.
The eight growth-driving sectors identified are advanced manufacturing; clean energy industries; creative industries; defence; digital and technologies; financial services; life sciences; and professional and business services. However no mention is made of the logistics sector.
Launching the green paper, Rachel Reeves, Chancellor of the Exchequer, said: “This industrial strategy will provide a launchpad for businesses. It provides the firm foundation for investment that businesses have told us they need. This government believes it is our role to provide the certainty that inspires confidence, allowing businesses to plan not just for the next year, but for the next 10 years and beyond.
“We will not repeat the mistakes of the past, with policy changing as fast as decision-makers. To put an end to the policy merry-go-round, we are going to establish a statutory Industrial Strategy Council, hardwiring stability and long-termism into our plan from the start.
“In its drive for growth, the industrial strategy will take advantage of the UK’s unique strengths and untapped potential, enabling our already world-leading services and manufacturing sectors to adapt and grow, and seizing opportunities to lead in new and emerging sectors.
“Jobs will be at the heart of our modern industrial strategy, supporting growth sectors to create high-quality, well-paid jobs across the country, backed by employment rights fit for a modern economy.”
Responding to the launch of the strategy, Michelle Gardner, Logistics UK deputy director of policy, said: “Logistics is one of the UK’s key foundational sectors and must be prioritised as such in the final version of the Industrial Strategy to be published in Spring 2025.
“All eight of the “growth-driving sectors” picked out by the Green Paper, depend on an efficient logistics sector. As the government starts to get the economy back on track, we need to ensure that the track is in the best condition possible.
“The efficiency of the logistics sector and productivity of the economy are completely intertwined. With appropriate investment, policy changes and the right partnerships with government, the logistics sector could provide a boost of up to £7.9bn per year to the UK’s GDP in productivity gains by 2030: this must be reflected in the Industrial Strategy and forthcoming trade and infrastructure strategies.”
She added: “The green paper announces the creation of the Industrial Strategy Forum and Industrial Strategy Council, and Logistics UK would welcome the opportunity to participate in both of these bodies to ensure the UK’s Industrial Strategy, through a focus on infrastructure, innovation, skills, regulatory reform, trade and inward investment, maximises the strategic advantages that logistics can deliver to the whole economy.”
