Clare Bottle, Chief Executive of the UK Warehousing Association (UKWA), has voiced significant concern over the lack of support for UK warehousing infrastructure amid the government’s ambitious infrastructure plans. As the government commits billions to growth-focused projects, including the NHS and high-speed rail, Bottle warns that warehousing has been overlooked. She urges the government to recognize that without robust UK warehousing infrastructure support, these large-scale projects face serious risks.
The UK’s warehousing sector plays a crucial role in supply chains, facilitating the transport, storage, and delivery of essential items. However, despite the government’s substantial budget for roads, railways, and housing, there has been no direct investment to strengthen warehousing. According to Bottle, this oversight could hinder the effective delivery of infrastructure goals and strain the supply chain further. “Logistics is the backbone of the UK economy,” she noted, emphasizing that UK warehousing infrastructure support is fundamental for sustainable growth.
Warehousing Under Pressure Amid Infrastructure Projects
The government has allocated significant funding to build and improve infrastructure across the nation, including the high-profile HS2 London Link and £1.4 billion for rebuilding schools. Yet, while roads and rail networks benefit, warehousing remains underfunded, despite its essential role. Every component needed for these projects, from raw materials to hospital equipment, must move through a functioning supply chain, which depends on well-supported warehousing.
“Warehousing will take the strain of these developments,” said Bottle, “but where is the additional government support?” She added that while there are plans for hundreds of new planning officers and £240 million for Trailblazer projects to address skills shortages, there is no clear funding allocated directly for warehousing infrastructure. This funding gap concerns both warehousing professionals and investors who recognize the importance of a stable supply chain for economic resilience.
Business Rates Relief Excludes Warehousing Industry
In another setback, warehousing has been excluded from the government’s business rates relief. Retail, hospitality, and leisure businesses received welcome relief, but the warehousing sector did not. Bottle argues that the current basis for rating warehouses is “intrinsically unfair” and leaves warehouse operators at a disadvantage. She committed to continuing UKWA’s advocacy efforts, urging policymakers to address these disparities and provide UK warehousing infrastructure support.
For warehouse operators, increased employer National Insurance (NI) contributions add further financial stress. The government’s unexpected reduction of the NI threshold from £9,100 to £5,000 will impact warehousing, as will the 1.2% rise in employer NI contributions. Many warehouse operators already face challenges with labor costs and operational expenses. This added cost, combined with the exclusion from business rates relief, places even more pressure on an industry that serves as the foundation of the supply chain.
Call for a Logistics Minister to Oversee Sector Growth
In light of these concerns, Bottle and UKWA have called for the establishment of a dedicated Logistics Minister. This role, she suggests, would ensure that warehousing and supply chain issues receive proper attention within government. The current budget has left industry leaders feeling that logistics is undervalued, despite its central role in the economy. By appointing a Logistics Minister, the government would signal its commitment to the growth and stability of the warehousing industry, aligning it with broader infrastructure goals.
UKWA believes that UK warehousing infrastructure support is vital for the successful completion of government projects. As Bottle summarized, “This budget feels like ‘déjà vu.’ We need a Logistics Minister to oversee these complex issues and prioritize logistics for the UK’s future.”
Industry professionals and investors alike are now watching to see if the government will respond. Enhanced support for warehousing could strengthen the UK’s infrastructure, benefiting the economy as a whole. For now, the warehousing sector continues its push for a seat at the table, confident in the vital role it plays within the supply chain.
Source: UK Warehousing Association (UKWA)
