Logistics UK Demands Sector Recognition in Industrial Strategy

In a pointed response to the government’s newly published industrial strategy, trade association Logistics UK has criticised the glaring omission of logistics from the list of eight sectors identified as growth drivers for the UK economy. The green paper, titled Invest 2035: The UK’s Modern Industrial Strategy, lays out Labour’s vision for economic growth, but fails to mention logistics—a sector integral to the success of every industry listed.

The strategy, introduced by Chancellor Rachel Reeves, highlights advanced manufacturing, clean energy, creative industries, defence, digital technologies, financial services, life sciences, and professional and business services as the primary engines of future growth. These sectors, according to the government, represent the UK’s best opportunities for economic expansion. But in overlooking logistics—a cornerstone that supports supply chains and ensures the flow of goods across the nation—critics say the strategy is ignoring a key element necessary for success.

In a sharp rebuke, Michelle Gardner, Logistics UK’s deputy director of policy, called on the government to reconsider. “Logistics is one of the UK’s foundational sectors and must be prioritised in the final version of the Industrial Strategy, set to be released in Spring 2025. All eight of the so-called ‘growth-driving sectors’ depend on an efficient logistics system,” Gardner remarked. “For the UK economy to get back on track, the logistics sector must be in peak condition.”

Gardner stressed the deep connection between logistics and the nation’s economic productivity, suggesting that with the right investment and government policy, logistics could add as much as £7.9 billion annually to the UK’s GDP by 2030. This, she argued, must be accounted for in the final strategy if the government is serious about long-term, sustainable growth.

The association also welcomed the government’s creation of the Industrial Strategy Forum and the Industrial Strategy Council, but urged for the logistics sector to be included in these bodies to ensure its voice is heard in shaping future policy. Gardner underscored the need for collaboration on issues such as infrastructure, skills development, regulatory reform, and trade, which she says are crucial for leveraging the full strategic potential of logistics.

As the government seeks to craft a future-proof industrial strategy, critics like Logistics UK are sounding the alarm, reminding policymakers that ignoring logistics could undermine the very sectors they hope to grow. Without a robust logistics framework, the entire economy risks stalling.

Read Similar…

Freight Crimes Could Drain £6.1 Billion from the Industry by 2049!