Tunbridge Wells, UK: More targeted government investment – combined with action to improve the flow of goods across borders and a commitment to work in closer partnership with the logistics sector – could boost GDP by £3.9 billion per annum by 2030, and generate enough revenue to finance the salaries of 20,000 nurses. That is one of the findings of a new independent report by Oxford Economics on behalf of business group Logistics UK.
“Logistics: Delivering a solution to the UK’s productivity puzzle’” outlines how the ability of UK’s logistics system to support greater competition and efficiency in the UK economy is being held back by challenges caused by border friction and a lack of investment in national infrastructure, innovation and skills.
David Wells, chief executive of Logistics UK, said: “The UK’s economy faces a productivity challenge at present, but logistics can be a big part of the solution. “To ensure that the nation’s decline in productivity is addressed, it is imperative that government works with the sector to establish a cross-Whitehall Logistics Productivity Forum, to maximise the benefits that this sector can deliver to the whole economy.
“To deliver the gains outlined in this report, the logistics sector requires government to work in strategic partnership with the private sector to deliver improved infrastructure, reduce friction at the country’s borders to boost trade, resolve skills gaps and invest in innovation to drive efficiency.”
This must be achieved alongside delivering the transition to a green economy, said Wells.
“If the UK gets the transition to net zero right, it will align with long term higher productivity. In the short-term, significant levels of investment are required to make the necessary switch efficiently,” said Wells. “Both public and private investment needs to avoid stranded assets. The logistics sector and government must work in partnership ensure that taxpayer and private investment in the transition delivers value for money and supports, rather than hinders, economic growth.
“Government support is vital to support the pace of change required, to prevent a loss in private sector efficiency, and ensure a smooth transition for all sectors of the economy.”
