Government spending cuts will limit economic growth, says Logistics UK

The announcement by the government to cuts in infrastructure spending will limit the ability of the logistics sector to kick-start economic growth, says business group Logistics UK.

Speaking after the announcement of spending cuts in key infrastructure projects by Chancellor of the Exchequer Rachel Reeves MP, Policy Director Kevin Green said that the lack of focus on infrastructure spending could hamper economic growth: “For too long, investment in improving the UK’s infrastructure has been overlooked, making it more challenging for goods to be delivered to their customers.

“Logistics underpins every sector of the economy and, as such, is ideally placed to help the new government get growth moving again.

“However, to do that, it is imperative that key infrastructure projects like the planned A303 improvements and investment in rail freight capacity are reprioritised to keep goods flowing through the supply chain across the country and enable our industry to play its part in getting the economy back on track.

“Our members appreciate that the books have to be balanced but ignoring the opportunities which logistics can create will hamper growth at a time when our sector stands ready to kick-start recovery across the economy.”

Logistics UK is one of the UK’s leading business groups, representing logistics businesses which are vital to keeping the UK trading, and more than seven million people directly employed in the making, selling and moving of goods.

With decarbonisation, Brexit, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc.

Logistics UK supports, shapes and stands up for safe and efficient logistics, and is the only business group which represents the whole industry, with members from the road, rail, sea and air industries, as well as the buyers of freight services such as retailers and manufacturers whose businesses depend on the efficient movement of goods.

For more information about the organisation and its work, visit logistics.org.uk     