Government plans for cuts in infrastructure spending will limit the ability of the logistics sector to kickstart economic growth, says business group Logistics UK and the Road Haulage Association.
Speaking after the announcement of spending cuts in key infrastructure projects by Chancellor of the Exchequer Rachel Reeves MP, Logistics UK Policy Director Kevin Green said that the lack of focus on infrastructure spending could hamper economic growth:
“For too long, investment in improving the UK’s infrastructure has been overlooked, making it more challenging for goods to be delivered to their customers. Logistics underpins every sector of the economy and, as such, is ideally placed to help the new government get growth moving again.
“However, to do that, it is imperative that key infrastructure projects like the planned A303 improvements and investment in rail freight capacity are reprioritised to keep goods flowing through the supply chain across the country and enable our industry to play its part in getting the economy back on track.
“Our members appreciate that the books have to be balanced but ignoring the opportunities which logistics can create will hamper growth at a time when our sector stands ready to kick-start recovery across the economy.”
Meanwhile, RHA Managing Director, Richard Smith said: “We are disappointed at the announcements that key infrastructure projects – the A303 Tunnel at Stonehenge and the A27 Arundel bypass will be cancelled. Investment in the Strategic Road Network is a critical part of the Government’s mission to grow the economy. These vital schemes are long overdue, not just providing a link between the southeast and southwest, but also safeguarding our cultural heritage.
“A failure to invest in our road network now will mean a failure to tackle the growing problem of congestion on Britain’s roads and choke the economic recovery. It’s estimated that congestion costs the UK economy a minimum of £30.8bn a year. In the short-term, the cost of an HGV stuck in stationary traffic for an hour is £120, a crippling cost at a time when hauliers are under serious financial pressures.
“In order to drive forward economic growth, we continue to urge the new Government to prioritise investment in key national infrastructure projects to tackle congestion, improve road safety, support business and keep the supply-chain moving at optimum levels.”
