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UK falls from 4th to 19th place in logistics rankings – business leaders warn of economic risks

The UK has fallen from 4th to 19th place in the World Bank's Logistics Performance Index over the past decade, which is why 30 major companies are calling on the government to recognise logistics as a foundational sector in its industrial strategy to prevent further economic decline and unlock £8 billion of annual productivity-led growth.

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Thirty major UK businesses, including Amazon, Wincanton, Kuehne+Nagel, and GXO, have called on the government to recognise logistics as a foundational sector in its upcoming Industrial Strategy. In a letter addressed to Business and Trade Secretary Jonathan Reynolds MP, the signatories stressed that efficient supply chains are critical to economic growth and should be represented on the Industrial Strategy Council.

Led by industry group Logistics UK, the businesses warn that neglecting logistics in national economic planning could hamper growth across multiple industries.

“Nothing in the economy moves without logistics,” said David Wells OBE, Chief Executive of Logistics UK. “If the government fails to include our sector in its economic plans, the strategy will be set up to fail before it even starts.”

The letter comes amid growing concerns over the declining efficiency of the UK’s transport infrastructure. According to the World Bank’s Logistics Performance Index, the UK has slipped from 4th to 19th place over the past decade, driven by road congestion, border delays, and underinvestment in transport networks.

A report by Oxford Economics suggests that improved logistics policies and infrastructure could unlock £8 billion in annual productivity-led growth. Business leaders argue that placing logistics at the heart of the Industrial Strategy would help reverse this decline and boost efficiency across the economy.

Among the signatories are several major hauliers and logistics firms, including Maersk, Scania, and DP World, who emphasise the need for long-term investment in transport networks to support seamless goods movement. With the government’s Industrial Strategy set to be published in the coming months, industry leaders insist that including logistics representatives on the Industrial Strategy Council will ensure policy decisions support the smooth movement of goods.

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