In a recent announcement made at the Conservative Party Conference in Manchester, Prime Minister Rishi Sunak disclosed the cancellation of the High-Speed 2 (HS2) railway line extension project connecting Birmingham and Manchester.
The decision has evoked varying reactions from key players in the logistics and transportation industry, particularly from the Road Haulage Association (RHA) and Logistics UK.
Logistics UK, a business group representing logistics companies in the UK, expressed deep disappointment in the cancellation of the HS2 extension. The group emphasised the adverse impact it could have on investor confidence and the development of the national logistics network, a vital component of the country’s thriving economy.
Today’s (4 October 2023) announcement of the cancellation of the #HS2 extension, between Birmingham and Manchester, damages investor confidence and harms the development of the national logistics network that the UK needs to thrive, according to business group Logistics UK.… pic.twitter.com/riU4tMDbCs
— Logistics UK (@LogisticsUKNews) October 4, 2023
Kate Jennings, the policy director of Logistics UK, underscored the importance of HS2 in unlocking economic growth across the UK. She noted that the additional rail network capacity promised by the project was critical for expanding rail freight opportunities and reducing carbon emissions by shifting freight from road to rail.
Jennings expressed concerns that rerouting high-speed trains onto the existing line between Birmingham and Manchester would exacerbate current rail freight capacity issues.
Logistics UK called for detailed confirmation from the government regarding the reallocation of funds initially earmarked for the Birmingham-Manchester HS2 stretch. The organization insisted that these funds should be redirected toward upgrading transport links, particularly in the north of England and the Midlands, to facilitate efficient logistics and environmental sustainability.
Logistics UK underscored the importance of an effective nationwide infrastructure to enable fast, environmentally friendly deliveries, especially amid the country’s efforts to transition to Net Zero.
In response to the HS2 cancellation, Logistics UK wrote a letter to Prime Minister Rishi Sunak, urging the government to support logistics decarbonization and the net-zero agenda. The organization’s Chief Executive, David Wells OBE, expressed the industry’s disappointment in the shift of the deadline for ending the sale of new petrol and diesel vehicles. He emphasised the government’s pivotal role in shaping public discourse and driving the transition to cleaner technologies.
Wells called for urgent progress on the rollout of public charge points suitable for commercial vehicles, the publication of the long-awaited low-carbon fuels strategy, and advancements in zero-emission road freight solutions. He stressed that without clear government support and guidance, the logistics sector could not invest at the necessary scale to meet net-zero targets.
Furthermore, Logistics UK emphasised the interconnected nature of the logistics industry and urged the government not to overlook rail electrification and the promised clean maritime plan.
A recent report by Oxford Economics highlighted logistics as a critical system for the UK’s economic growth. By prioritising logistics and collaborating with the industry, the government could potentially boost UK GDP by £3.9 billion to £7.9 billion per year by 2030.
RHA pleased by “Rishi Sunak’s pledge” to fill the potholes
In contrast to Logistics UK’s reaction, the Road Haulage Association (RHA) has welcomed the HS2 cancellation announcement, seeing it as “Rishi Sunak’s pledge” that some of the money from the scrapped HS2 Birmingham to Manchester line will be used to improve roads.
Declan Pang, RHA Director of Public Affairs and Policy, England, said:
“We welcome the investment into the A1, A2, A5, M6 and A75, alongside more than 70 other road schemes that were announced. Together with increased funding for road maintenance, this will help the commercial vehicle sector continue to keep Britain moving, and we await publication of the timetables for completion of these schemes.”
Warehouse association also frustrated by UK Government’s latest shortage occupation list
Meanwhile, the UK Warehousing Association has also expressed its frustration over the freshly published Migration Advisory Committee’s (MAC) review of the shortage occupation list, which does not mention forklift truck drivers or warehouse operatives.
Having led a co-ordinated a campaign last year demonstrating the critical labour shortages being suffered by the warehousing and logistics sector, and also submitted a formal request on behalf of its members, the trade body says its recommendations have been snubbed.
CEO Clare Bottle said:
“Our industry is crucial to the economy, we can deliver growth, improve productivity and achieve social mobility and levelling up – all aligned with the stated aims of this Government – yet when we ask for support, we are simply ignored. Ministers cannot afford to keep disregarding these ongoing labour shortages.”