Business Leaders Call for Logistics to Be Central to UK’s Industrial Strategy

The heads of 30 leading UK businesses have written to Business and Trade Secretary Jonathan Reynolds MP, urging the government to prioritise the logistics sector in its forthcoming Industrial Strategy. Spearheaded by business group Logistics UK, the signatories - including Amazon, Heathrow Airport, and Tesco - highlight the crucial role of supply chains in supporting all areas of the economy and call for logistics to be represented on the newly formed Industrial Strategy Council.

David Wells OBE, Chief Executive of Logistics UK, emphasised that logistics underpins the success of every industry, ensuring the smooth operation of hospitals, schools, factories, and retailers. He warned that failing to acknowledge the sector’s importance would hinder economic growth. The government’s Industrial Strategy Green Paper has introduced the concept of ‘foundational sectors’ - industries that provide essential support to others - and business leaders argue that logistics must be formally recognised as one of them.

The UK’s ranking in the World Bank’s Logistics Performance Index has dropped from 4th to 19th over the past decade, largely due to congestion, border delays, and inadequate transport infrastructure investment. Wells stressed that reversing this trend through targeted policies and investment could unlock up to £8 billion in annual productivity-led growth, as identified by Oxford Economics.

The business leaders are calling for logistics to have a dedicated voice on the Industrial Strategy Council to ensure the sector is fully integrated into the UK’s growth strategy. They argue that improving efficiency in goods movement is essential to boosting the economy, and that a partnership between government and business would help deliver long-term prosperity.

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