With a new government in power, we look at what a Labour government means for the logistics and supply chain industry. Take a look at what’s been promised here
The logistics sector has long needed support from the government and with the election dust settled, we can now see how the new look Labour is looking to support the logistics sector through a swathe of supply chain strategy changes aimed at UK business and development. What are the opportunities, the challenges, and what has already been promised in the manifesto? Join us as we look at how logistics seems set to change over the next five years.
What has Labour promised?
The Labour Party’s manifesto covers a range of topics in five key missions. For logistics, this is primarily represented in the first mission:
“Kickstart economic growth - to secure the highest sustained growth in the G7 – with good jobs and productivity growth in every part of the country making everyone, not just a few, better off”
How they plan to do this requires a bit more detail, however. Commentators have isolated some of the key points which we’ll explore below:
A commitment to infrastructure support
First and foremost, the government has committed to ‘aligning infrastructure strategy with industrial strategy and regional development priorities, including improving rail connectivity across the north of England’. This change may support multimodal transport and allow for better integration of road and rail.
This will require significant management and support which is where the plan to ‘develop a ten-year infrastructure strategy’ comes into play. It’s unclear what this new government’s logistics strategy will be at the moment but we will hopefully find out in the coming weeks and months.
Despite this vague support there does seem to be something concrete in the promise to ‘create a new National Infrastructure and Service Transformation Authority to set strategic infrastructure priorities.’ This includes a focus on updating policies to make it easier to build digital infrastructure and gigafactories to support the automotive industry.
Supply chains and trade deals
The above-mentioned ten-year plan has a lot of changes mooted for logistics and trade with Labour claiming their plans will ‘guide investment plans and give the private sector certainty about the project pipeline’.
This includes investment in the form of upgrading ports, rebuilding the steel industry, and fostering trade deals. Some of the areas highlighted include ensuring the AUKUS (brought in by the previous government) delivers on its potential as well as taking a ‘new approach’ to trade with Africa and developing a new trade partnership with India which is described as a ‘free trade agreement, and “deepening the UK’s co-operation with partners across the Gulf on regional security, energy and trade and investment”.’
Closer to home the government will also look to support trade across the channel by negotiating a veterinary agreement with the EU to reduce border checks and tackle the cost of living.
Energy plans and public works
Another area where logistics will play a key role is in the development of new energy and public works. The targets of 2030 are back in sight as the new government wants to “double onshore wind, triple solar power and quadruple offshore wind by 2030, creating 650,000 jobs across the country.”
Part of these jobs will be through a new publicly-owned company called Great British Energy which will work with various entities to develop clean energy.
Along with energy, the new government will look at roads and railways with the target of fixing an “additional 1 million potholes across England in each year of the next parliament, funded by deferring the A27 bypass.”
These gears of change will all be greased by cutting red tape through new national policies yet to be announced.
Address the skills gap
Moving to the labour pool, the skills shortage has been a key concern for logistics for years. The supply chain is crying out for a new generation of logisticians and Labour hope to address this by providing better access to training and apprenticeships.
This will be partly directed by a new entity, Skills England, which will ‘bring together business, training providers and unions with national and local government’ to ensure a highly trained workforce’.
Work towards net zero
Last, but not least, a future with more electric vehicles is potentially on the cards with sweeping changes to current EV development in the UK. This includes more charge points, standardising the information supplied on the condition of EV batteries (presumably for safety), and restoring the phase-out of new cars with internal combustion engines by 2030.
Is it all viable?
That is a long list of changes and time will tell whether they accomplish all their goals. We believe that even the most optimistic people in the room wouldn’t expect every target to be hit but all of these policies speak to a movement that has plenty of opportunities for the logistics sector.
First and foremost will be stabilising the economy before looking at any changes but perhaps with time we could see some benefits for hauliers and logisticians around the country.
As ever, at Multimodal we will ensure our events cover these topics and the latest industry news to help the sector develop. If you’re interested in finding out more about this year’s event or want to be part of Multimodal 2025 contact our team today.
