On 22 May 2024, prime minister Rishi Sunak stood in front of 10 Downing Street to address the nation’s press and announce that a general election will take place on 4 July 2022.
With the election set to dominate headlines for the weeks to come, what impact will the election have on the UK logistics sector and how might supply chains be affected by the results of the vote on 4 July?
What does the industry want to see ahead of the polls?
Following the announcement of the general election, trade association Logistics UK reiterated the messages outlined in its manifesto, which was published in January 2024. Amongst the recommendations in Logistics UK’s manifesto is a call for what CEO David Wells OBE described as “a dedicated minister for logistics and supply chain with cross-departmental responsibilities”.
An Ipsos survey of over 2,000 adults in the UK found that ‘four in five adults agree that the strength of the UK’s economy depends on having an efficient logistics sector that delivers goods in a timely and cost-effective way’.
Wells said: “The public understands how vital logistics is and, rightly, does not think the government is doing enough to support the industry. Our sector, which services every part of the UK’s economy, would deliver up to £7.9 billion per year in productivity-led growth if backed by the right government policies, as well as creating jobs and trading opportunities both domestically and overseas.
“The establishment of a cross-Whitehall Logistics Productivity Forum, led by a dedicated logistics and supply chain government minister, would ensure that benefits from our sector can be delivered to the whole economy.”
Alongside this recommendation, Logistics UK has urged politicians of all parties to establish measures including ‘skills partnerships and reforms to funding models to ensure a continued pipeline of talent is attracted into the sector’, ‘innovative and integrated infrastructure, backed by investment in a national logistics network’ and ‘a fair transition to a green economy, underpinned by an agreed roadmap to net zero’.
Another organisation, the Institute of the Motor Industry (IMI), has published a ‘wish list’ for the next government ahead of polls opening on 4 July. This document begins by pointing out that the automotive industry employed around 866,000 people and contributed £37bn gross value added (GVA) to the UK economy in 2023.
The IMI identified four key issues that it believes ‘need addressing to ensure the sustainability of the automotive sector and, therefore, sustainability of the UK economy’. These issues are: education; skills; road safety, consumer trust and confidence; and new technologies.
Amongst the recommendations in its wish list, the IMI has called for action such as ‘ensuring all levels of educational institution have curricula that match industry needs’ and ‘supporting the upskilling of the sector to work on advanced driver-assistance systems (ADAS) and electric vehicles’.
Steve Nash, CEO of the IMI, said: “There is a clear opportunity for the next government to learn from the past and provide the support and infrastructure that will ensure UK the automotive sector remains a global leader, as well as give UK motorists and businesses confidence.
“However, without correctly maintained and repaired vehicles, supported by a sufficiently populated, diverse, qualified and continuously trained workforce this fundamental is at serious risk.
“The IMI has worked hard to engage with all political parties over the last few years to ensure there is a good understanding of what’s needed to keep UK motorists and road users safe.
“The knowledge and expertise has been provided and we very much hope the next government will place the right emphasis on the automotive sector.”
What policies could impact the supply chain and logistics sector?
One of Labour’s so-called “first steps for change” is to set up Great British Energy, a publicly-owned clean power company in an attempt to ‘cut bills for good and boost energy security’. This, it says, would be paid for by ‘a windfall tax on oil and gas giants’. The party says that this is part of its “Green Prosperity Plan” to create 650,000 jobs, cut bills by £300 on average and deliver energy security.
In an interview with BBC News, Labour leader Sir Keir Starmer said: “As we transition into clean power there is the potential for a huge number of skilled, long-term, well-paid jobs.”
He added: “In Europe, in America, initiatives are already underway to get ahead on renewables. I want Scotland, the UK, to be in the race.”
Labour’s proposals surrounding energy have been criticised by Conservative energy secretary Claire Coutinho, who took to X (formerly Twitter) to describe GB Energy as “Ed Miliband’s vanity project” and cast doubts over the viability and benefits of such a project.
Starmer’s Labour has also committed to building ‘more houses, gigafactories, wind farms, roads, labs and ports, developing the skills needed to do so’. It says that this could be achieved by ‘following strict rules that strengthen public finances and by reforming planning laws’.
Meanwhile, the Conservatives have pledged to deliver £20 million each to 55 towns in the UK which could be spent on ‘bringing life back to high streets, cutting crime, improving local transport and creating new jobs’.
The party says that the allocation of this spending would be decided by a town board, not Westminster, allowing community leaders, employers, local authorities and the local MP to have a say in how the money is spent.
Both the Conservative and Labour parties are yet to release their full manifestos ready for the general election. It is expected that these manifestos, when published, will reveal more about the parties’ policies on transport, logistics and the economy, amongst other issues important to voters.
