The UK’s logistics industry now contributes £170 billion annually to the economy and employs over 8% of the national workforce, according to new figures published in The Logistics Report 2025. Launched at Logistics UK’s first-ever annual conference in London, the report calls on the government to acknowledge the strategic importance of logistics in driving national growth.

Phil Roe, President of Logistics UK, highlighted that logistics is far more than a background function - it’s a core component of economic performance. He urged policymakers to position logistics as a priority within the UK's Industrial Strategy, noting its foundational role in enabling trade, supporting businesses, and sustaining supply chains.

The report combines official statistics with insights from industry professionals and survey responses from over 500 logistics firms. It reveals a dip in overall business confidence, attributed to ongoing economic pressures. However, firms continue to invest cautiously, particularly in new vehicle technology and sustainable fleet management, demonstrating their commitment to decarbonisation.

Despite efforts to modernise, the sector faces ongoing recruitment challenges. Larger firms are turning to automation and AI to fill gaps, but concerns remain about the need for a steady pipeline of skilled workers. As global trade agreements advance, experts stress that a resilient logistics network is vital to realising the full benefits of future trade deals.

Following the government’s latest spending review, Chancellor Rachel Reeves has confirmed a £15.6bn investment package aimed at upgrading transport infrastructure outside London. The funding forms part of a broader £113bn capital programme designed to drive long-term economic growth through improvements in transport, housing, and energy.

The review outlined major allocations for regional transport, including £2.5bn for Greater Manchester, £2.4bn for the West Midlands, and £2.1bn to kick-start West Yorkshire’s mass transit system. South Yorkshire secured £1.5bn to modernise its tram network, and the East Midlands was awarded £2bn to begin designing a new transport link between Derby and Nottingham. Many of these projects had been previously announced but never funded under the Conservatives.

Reeves positioned the spending as a deliberate move away from centralisation, confirming a change to Treasury rules to prioritise projects that enhance productivity in regions often overlooked. She stressed that the review marks a “step change” in how investment is assessed and allocated, giving every region a “fair hearing”.

Despite concerns around tightening departmental budgets, Labour insists this capital package reflects its commitment to rebuilding Britain with fairness at its core - placing infrastructure and regional opportunity at the heart of its economic strategy.