Logistics UK research: every £1 of logistics activity creates a further £1.04 for UK economy
Published with Capital Economics on the eve of the Budget, the research credits the freight and logistics sector with underpinning £356bn of economic activity and 5.3 million jobs. Logistics UK is using the figures in its pitch to the Chancellor.
Logistics UK has published research estimating that every £1 of economic activity generated directly by the UK logistics sector creates a further £1.04 across the wider economy. The report, 'UK logistics: a critical driver of growth and investment', was produced by the trade body in association with Capital Economics. FleetPoint reported that Capital Economics launched the modelling on 27 October at the Houses of Parliament, the eve of the Budget.
Logistics UK chief executive Ben Fletcher said: "With the Budget imminent, my message to the Chancellor is that the logistics sector doubles your money." He added: "These findings demonstrate why supporting the conditions for logistics businesses to invest, grow and operate efficiently should be a top priority for the government as it seeks to boost growth in every postcode."
Counting direct, indirect and induced effects, the research says the sector underpins £356bn of economic activity, 5.3 million jobs and £65bn in tax revenues, and enables more than £1tn of international trade a year. The sector's direct annual contribution is put at £175bn, a figure Logistics UK sources to its own Logistics Report 2026 rather than to the new modelling.
According to the research, spending by logistics businesses with their UK suppliers supported over £90bn of gross value added (GVA) and 1.5 million jobs in 2024. Transport, administrative services, professional services, finance and manufacturing each gained more than £10bn in GVA from that activity. Spending by logistics employees, described as induced activity, contributed a further £90bn of GVA and supported another 1.1 million jobs in 2024.
On tax, Capital Economics found the sector contributes £30bn a year in tax revenue, with the Exchequer receiving a further £34bn from spending by logistics businesses and their workers.
The modelling also finds that a one percentage point increase in logistics' share of total GVA is associated with a one percentage point increase in foreign direct investment as a share of GDP. The report equates this to a £30bn boost to the economy, or more than £1,000 for every UK household.
Fletcher said: "To get growth going, we must ensure the logistics sector has the capacity, resilience and infrastructure needed to drive growth and attract investment from home and abroad."
Sources
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