Britain’s logistics industry has told the Chancellor it stands ready to help drive an extra £8 billion a year into the economy — if government pulls the right levers.
Senior sector figures met Rachel Reeves in the Midlands on Friday, 13 February, to press the case for logistics to play a central role in the government’s growth agenda.
Industry representatives said the sector could help “catalyse growth and kick start the country’s economic performance” as part of Labour’s broader economic strategy.
The meeting took place at Hams Hall and was hosted by LTS and local MP Rachel Taylor during the Chancellor’s regional visit.
Ben Fletcher, chief executive of Logistics UK, described the talks as focused and pragmatic.
“Our discussions with the Chancellor were clear and constructive: stay focused on growth and work with our sector to provide the backing it needs to deliver it,” he said.
He stressed the scale of logistics’ role in the economy, describing it as the “golden thread” running through national life.
“Our members move all the goods the economy relies on to operate effectively, and are the golden thread which helps deliver new homes, export health, achievement of the Industrial Strategy and, with that backing, can reduce the cost of living for the consumer,” he said.
Mr Fletcher added that targeted support would be essential if the industry is to fulfil its potential.
“To help deliver this, investment in skills and delivery of policies to support energy prices and net zero to assist our sector to deliver its priorities will be key.”
According to Logistics UK, the sector underpins every commercial exchange in the country.
“Logistics businesses facilitate every transaction within the economy, from movements of raw materials to delivery of finished products to the end consumer,” Mr Fletcher said.
“We are involved at every point of the transaction – nothing moves across the country, and around the world, without logistics.”
Research commissioned by the organisation suggests the industry could generate an additional £8 billion in economic growth each year if it is enabled to operate more efficiently.
However, business leaders warned that mounting pressures are holding firms back.
“But the cost and tax pressures placed on our sector, combined with barriers to trade with the EU, are stifling our ability to deliver effectively for the economy,” Mr Fletcher said.
He added: “We were clear with Ms Reeves today – for our sector to play its part, we want to work with the government to make it easier for us to power the economy in the way we know is possible. It was reassuring to see that these messages were listened to and understood.”
The meeting forms part of ongoing engagement between ministers and industry as the government seeks to accelerate economic growth across the regions.