Overview
Following the Labour Party victory in election results, there are several key points from their 2024 manifesto that would significantly impact the industry. These policies intend to reshape the transport, logistics and warehouse landscape with the aim of promoting sustainability, efficiency, and social equity.
They have pledged to introduce legislation in Parliament within 100 days of entering government, so we could start to see some changes in a relatively short time-frame.
Clean power by 2030
One of Labour’s key missions is to achieve net-zero carbon emissions by 2030, which includes investing in sustainable transport options and electrification of the vehicle fleet. The push for greener transport could lead to increased funding/tax reliefs for logistics companies needing to upgrade fleets to electric or low-emission vehicles. The long-term benefits may include a reduction of fuel costs and compliance with future environmental regulations.
Public Ownership and Investment in Transport
Labour has proposed taking key parts of the transport network into a unified structure, including railways, and increasing investment in public transportation infrastructure. This could lead to changes in logistics operations that rely on rail freight.
Infrastructure Development
Labour has proposed significant investment in infrastructure, including improving roads, bridges, and digital infrastructure to support modern logistics needs. Better infrastructure can lead to more efficient transport routes, reduced delivery times, and overall improved logistics efficiency. Investments in digital infrastructure can enhance tracking and supply chain management.
Trade Policies
Labour aims to negotiate a closer relationship with the EU, which could simplify trade and reduce customs barriers, benefiting logistics companies involved in international trade. It may also alleviate some of the disruptions caused by Brexit.
Skills and Training
Labour plans to invest in education and training, including expanding apprenticeship programs and ensuring access to lifelong learning for all workers. Increased focus on training and skills development can address the skills shortage in the logistics sector, particularly for HGV drivers and logistics managers. This can lead to a more skilled and efficient workforce.
Workers’ Rights and Pay
Labour has committed to strengthening workers’ rights, banning zero-hour contracts and ensuring job security and fair pay, with the minimum wage level set at a rate that considers the current cost of living crisis. These policies could increase labour costs for transport and logistics companies, particularly those heavily reliant on low-wage or casual workers. Enhanced workers’ rights might improve job satisfaction and reduce turnover, potentially leading to a more stable workforce.
