Challenge

The UK logistics sector, a key economic regional growth driver, faces significant challenges in meeting upcoming net-zero deadlines while maintaining profitability and productivity. The sector must invest heavily to decarbonize while addressing three main challenges: 1) protecting supply chain resilience while preserving service level, 2) unlocking investment for decarbonization, and 3) improving multi-modal transport infrastructure planning and delivery. 

Solution

In January 2024, a few months before political elections, Logistics UK, gathering over 21,000 members, released a manifesto calling for public-private collaboration to tackle these challenges and deliver a fair transition to a green economy. The manifesto highlights key areas for policy collaboration and dialogue creation, including:

• Shared vision: Joint work to agree on a consolidated logistics net-zero roadmap, embedding fossil fuels phase out, and based on technology infrastructure investment availability and regulatory reforms and tax incentives
• Dedicated financial mechanisms: Tax incentives supporting business investment, including full expensing for capital investments required to update vehicle fleets and fees paid to energy network operators for the necessary upgrades to vehicle charging infrastructure. Additionally, a review of road pricing and fuel duty mechanisms is needed to align with sustainable transport goals.
• Supportive regulatory framework: Unified reforms to end the heterogeneous local charges adding inefficiency

Impact

Following the manifesto, both political wings have included logistics sector transformation in their political agendas, reflecting the influence of the industry’s unified voice. Logistics UK estimates that partnering with policy-makers could boost economic growth by up to £7.9 billion annually by 2030, driven by productivity gains. The generated impact of the proposed action plans will be measured in the coming years.