The UK logistics industry is appealing for immediate government assistance as rising costs linked to tensions in the Middle East place increasing strain on businesses. Logistics UK has warned that without intervention, the impact could spread across the wider economy, pushing up prices for consumers and affecting growth.

Fuel costs have been highlighted as a major concern, with the expense of filling a large lorry rising sharply in recent weeks. Many companies operate on tight profit margins, and while some have been forced to pass increased costs on to customers, others say they cannot, leaving them facing significant financial pressure.

Chief executive Ben Fletcher said the situation is becoming unsustainable, with the risk of higher inflation and disrupted supply chains. He called for a support package from Chancellor Rachel Reeves to help firms manage current challenges while continuing progress towards greener operations and improved energy security.

Industry leaders are urging the government to delay planned fuel duty increases and extend financial support to cover rising electricity bills, particularly for energy-intensive facilities such as refrigerated warehouses. They also want logistics firms included in schemes designed to boost industrial competitiveness and are calling for a temporary reduction in business rates to ease pressures and allow investment in the sector’s future.