0.1%. That’s how much the UK economy grew in the final quarter of 2024. Doesn’t sound like much, does it? It takes the total for the year to growth of 0.8%, hardly stellar. In fact, when it comes to the Transport and Storage sector, which includes warehousing, things are slightly worse. The sector began 2024 as a contributor to overall growth, but has been a drag on it in the second half of the year.
What does this mean? Well, it comes in the context of leaked forecasts from the Office for Budget Responsibility suggesting that the Chancellor has very little ‘headroom’ against the spending rules she has set herself. The upshot is that there is not going to be much money for the Government to spend on its mission to drive economic growth and improve public services.
As Clare Bottle, UKWA CEO said when we submitted our response to the Chancellor’s ongoing Spending Review, warehousing “is a highly competitive sector, operating often on tight margins, and it normally doesn’t ask much from government”. But there are things that ministers can do that won’t break the bank.
The UKWA’s submission to the 2025 Spending Review provides direct feedback on government spending priorities and includes practical proposals for investment that reflect the needs of our sector. Our recommendations are designed to inform decisions about departmental budgets and resource allocation in the coming fiscal period, ensuring that warehousing continues to support the wider economy efficiently and sustainably. You can read our full submission here.
Alongside others in the broader logistics industry, we have supported the Generation Logistics programme, part-funded by the Department for Transport (DfT), to encourage young people to consider careers in warehousing and logistics. At the cost of only around £300,000 a year to the Treasury, it’s a good use of public money, and we’ve called for it to be continued.
We have also called for DfT to extend its Freight Innovation Fund, which awards grants of up to £150,000 to small businesses with solutions to increase productivity and sustainability in logistics. UKWA members have been involved in projects through the fund, and we have suggested it be maintained for the coming years.
Of course, it’s not all about new projects or programmes. For many businesses, the issue they face are about getting a good service from the parts of government they have to deal with. That could be getting a planning decision in a reasonable timeframe, or challenging a business rates valuation. This means adequate resourcing for planning officers, and for the Valuation Office Agency.
The outcome of the Spending Review is due in June. At the moment, it feels like a huge amount could happen between now and then (hopefully not including a full-blown trade war).
We will keep UKWA members updated, and in the meantime, please do get in touch about any emerging issue you think we should raise with the Government.