The UK’s latest budget announcement has stirred up the logistics industry. While the extension of the fuel tax freeze is a welcome relief, the increase in the minimum wage and employer contributions to the National Insurance program is set to significantly impact businesses, including those in the logistics sector. Rob Carlisle, associate partner at Argon & Co., highlighted the ‘double whammy’ effect of these changes on labor costs, urging companies to strategize on how to mitigate the impact of rising workforce costs.
Call for a Logistics Minister
In response to the budget announcement, Clare Bottle, the chief of the UK Warehousing Association (UKWA), has called for the creation of a Logistics Minister role within the government. She expressed concern that the government’s commitment to major infrastructure improvements has overlooked the increased pressure on supply chains. Bottle believes that a dedicated Logistics Minister could ensure that supply chains receive the necessary investment and support for the successful delivery of large infrastructure projects.
The UKWA has also called for revisions in business rates assessment, incentives for investment in solar panels on warehouse infrastructure, and modernization of industry apprenticeships. The association believes these changes are crucial for the warehousing and logistics sector to thrive and contribute effectively to the UK’s economy.
The budget announcement has underscored the need for businesses to modernize through technology to operate efficiently and build resilience against uncontrollable factors, according to Carlisle.
