The Spring Statement 2025 didn’t have any surprises for the Transport and Logistics sector, with opportunities arising from infrastructure investments and workforce development initiatives, alongside challenges posed by increased taxation announced in the Autumn Budget and a moderated economic growth outlook. Those that were hoping for any cuts to the rates included in the Autumn Statement will be disappointed, with the focus largely being on the long term strategy meaning the continuation of short term struggles for businesses is ongoing.
Lower Thames Crossing
Although spending focussed on defence in the Spring Statement, it was announced a day earlier that the £9bn Lower Thames Crossing between Kent and Essex had been given the green light by the Transport Secretary Heidi Alexander. This will be a key strategic route for drivers, improving connectivity between the South and the Midlands, linking up to ports, and unlocking regional economic growth.
Backing of the third runway at Heathrow Airport
As the UK’s largest airport by trade value, the expanding runway capacity will lead to an increase in air freight handling capabilities, helping logistics companies respond more flexibly to global supply chain demands.
Construction and subsequent operations of the third runway would generate thousands of jobs directly and indirectly within the transport, logistics, and supply chain sectors. This would positively impact the economy through increased employment and business opportunities.
General Comments
Overall, businesses in the transport and logistics sector will be faced with increased operational costs due to the higher national insurance contributions and the rising living wage. Whilst the infrastructure investments mentioned above will present opportunities, concerns about fiscal sustainability and the allocation of funds persist. It’s crucial for businesses to stay informed about these developments and assess their potential impact on operations and strategic planning.
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