Logistics UK, one of the nation’s largest business groups and the sole trade association representing the entire logistics sector, has urged the government to prioritise workable solutions for frictionless trade to drive economic growth. Responding to the Department of Business and Trade’s (DBT) call for stakeholder input into its forthcoming Trade Strategy, Logistics UK has highlighted the urgent need for changes to border processes to facilitate smoother trade with Europe, the UK’s largest and closest trading partner.
The group emphasises that the cumulative impact of post-Brexit trade and border policy changes has significantly increased costs and inefficiencies across the logistics sector. To address these issues, Logistics UK calls for a consistent and practical approach in the government’s new Trade Strategy. This would provide the sector with the clarity, reassurances, and timely communication necessary to enable seamless trade. The group also stresses that a closer and more efficient trading relationship with the EU is essential to revitalise the UK’s economic prospects and unlock opportunities for businesses.
Restoring Confidence in International Trade
Josh Fenton, Logistics UK’s Policy Manager for Trade, Customs and Borders, commented: “The past decade has brought enormous challenges for many businesses, particularly in the logistics sector, and the current lack of stability has damaged business confidence. This, in turn, has affected domestic and international investment and trading relationships with our EU neighbours. Many businesses that previously traded internationally are now solely focused on the domestic market, reducing opportunities for the UK to benefit from strong, profitable business ventures. The Trade Strategy can reset the UK’s trading position, creating the environment to smooth trade and drive growth across the economy.”
A Call for a Dedicated Logistics Minister
Logistics UK is also renewing its call for the government to appoint a dedicated Minister for Logistics and Supply Chain, with responsibility spanning multiple departments. Fenton explained: “Logistics is a foundational economic sector, underpinning practically every industry or service in the country and contributing £185 billion to the economy annually. Nothing in the economy moves without the work of our sector. A dedicated minister would streamline interaction with government, enabling our members to enhance their already significant economic contribution and drive growth across the UK economy.”
Practical Recommendations for the Trade Strategy
In its submission to the DBT, Logistics UK outlined several key measures for inclusion in the Trade Strategy:
- Efficient delivery of the 2025 UK Border Strategy.
- Development and expansion of the UK’s trading relationship with Europe, including the implementation of a comprehensive Veterinary Agreement.
- Effective execution of the Windsor Framework.
- Establishment of Free Trade Facilitation Agreements and Free Trade Agreements, with logistics and connectivity central to the negotiations.
- Move towards joining the Pan-Euro-Mediterranean Convention (PEM)
Resetting the UK’s Trade Relationships
Fenton concluded: “The new Trade Strategy must allow the government to rebuild confidence and credibility throughout the logistics sector. This will ensure that our industry receives the solutions it needs to thrive and drive growth throughout the UK. Our members are ready to work with the government to make a reset relationship with the EU an effective reality, benefiting all areas of the economy.”
Logistics UK’s comprehensive recommendations reflect its commitment to ensuring that the logistics sector continues to support and drive economic growth, both domestically and internationally.