The industry has given a mixed response to the Chancellor’s Spring Statement, as the RHA hailed reforms of the planning system while warehousing firms lamented the effect of higher NI and business rates.
In a speech focusing largely on welfare budget cuts and defence spending amid a faltering economy, Rachel Reeves said the task was to secure Britain’s future in a world that was changing before our eyes.
She said the government intended to “back the builders, not the blockers” and overhaul the planning system.
The RHA said reform of the planning system and investment in roads was a good place to start; MD Richard Smith said: “On infrastructure, the government’s acknowledgement that critical infrastructure underpins economic growth is welcome.
“It’s why we urged the government in our spending review response to prioritise investment in road infrastructure projects that have the best business case for delivering growth – projects like the Lower Thames Crossing which we welcomed the approval of.
“Further investment in nationally significant infrastructure projects now needs to happen if government is going to deliver on house building targets, reduce congestion, improve journey times and connect our towns and cities.”
Smith added that hauliers will be crucial to meeting the aim of building new homes and the defence and manufacturing industries also required secure supply chains that logistics businesses could provide.
But the UK Warehousing Association said creating a ‘defence-industrial superpower’ needed a thriving warehousing sector.
“As an employer of over 400,000 people, the warehousing industry will be hit hard by higher national insurance,” said Edwin Morgan, public affairs director.
“It’s also set to be whacked with additional business rates, which seems like a punishment for the investment that’s gone into modern warehouses.
“Companies aren’t much interested in playing the blame game, and the UK is being battered by external forces, but the government has to find space for growth.
“It’s critical that they follow through on planning reform, so decisions on warehouses are made fairly and quickly.”
