Logistics UK takes Capital Economics economic impact report to Parliament ahead of Autumn Budget
The study, commissioned by the trade body, estimates logistics underpins £356bn of UK economic activity a year and 5.3 million jobs. Logistics UK's Budget asks for operators were a fuel duty cut or freeze, relief on business costs including rates, and cheaper electricity to support fleet electrification.
Logistics UK has released 'UK logistics: a critical driver of growth and investment', an independent report produced for the trade association by Capital Economics. It assesses the indirect, induced and catalytic impact of the logistics sector. According to Air Cargo Week, Logistics UK shared the report with Parliament on 27 October 2026, the day before the Autumn Budget.
Air Cargo Week reports that the report finds logistics underpins £356bn of economic activity every year. It also says every £1 of economic activity the sector generates directly provides a further £1.04 across the wider economy. On employment, the report finds logistics employs 8% of the UK workforce, or 5.3 million jobs. Air Cargo Week reports that this is comparable to, and in some cases larger than, construction, manufacturing and financial and professional services. THRIVE reported the £1.04 multiplier on 27 October.
According to Logistics UK, the report breaks down the sector's economic impact through supply chain spending, employee spending and tax contribution. It also analyses the relationship between logistics activity and inward foreign direct investment, and finds that an increase in transport GVA is associated with a larger increase in FDI.
Logistics UK's three asks for the Budget were a cut or freeze in fuel duty and relief from some business costs, including rates. Its third ask was lower electricity costs to support electrification, by bringing the logistics sector into the British Industrial Competitiveness Scheme (BICS).
Speaking to Air Cargo Week, Logistics UK chief executive Ben Fletcher said the association had seen more contact from government: "We’ve had more inquiries from Treasury, more requests for evidence." He said he did not think it was entirely coincidental that this came alongside a new minister for logistics. Air Cargo Week reports that Keir Mather's responsibilities as Minister for Aviation, Maritime and Logistics were expanded on 22 July to address logistics more specifically.
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