Chancellor outlines growth ambition

The Chancellor also said it supports a third runway at Heathrow and is inviting proposals to be brought forward by the summer.

Chancellor of the Exchequer Rachel Reeves said: “I have always been clear that a third runway at Heathrow would unlock further growth as part of our Plan for Change. The case is stronger than ever because our reforms to the economy - like speeding up our planning system.”

Business group Logistics UK reacted to the news. 

Its chief executive David Wells OBE, said: “The proof of the pudding will be in the speed at which planning decisions are taken and projects delivered, which will be critical to the success of the Chancellor’s plan. 

“If nationally important projects like the Lower Thames Crossing and third runway at Heathrow become a reality, we can deliver goods more efficiently across the country, benefitting everyone nationwide.

“The World Bank Logistics Productivity Index shows that the UK has slipped from 4th in the world to 19th in the last 10 years – primarily because of congestion and delays, friction at our borders, and a lack of infrastructure investment. 

 “If we make the right investments, Oxford Economics suggests that would turbocharge growth across the whole economy.”

Alun Cornish, manager director ramp and gateways at FedEx Europe, added: “Expansion at Heathrow is a step in the right direction for UK growth. To fully realise its potential, it’s crucial that expansion plans include provisions for cargo growth alongside passenger flights.”

Lower Thames Crossing

Europa Worldwide Group chief executive officer, Andrew Baxter, said: “We are strongly of the opinion that the Lower Thames Crossing will drive growth for businesses, offering them more opportunities to trade with their British and European markets, and thus boosting our economy.”

The proposed 23km trade link between Essex and Kent will connect the North, Midlands and Channel Short Straights, where over half of all goods traded between UK and EU are transported.

Employer costs

Commenting on the Chancellor’s growth speech Phil Pluck, CEO of the Cold Chain Federation had some questions on achieving growth.

He said: “We support details here, but they are largely repetitions of what has already been said. The Chancellor stated that she will make it easier for companies to invest but fails to acknowledge that increases in employment costs already imposed have resulted in the exact opposite.

“The cold chain sector is looking at over £620 million in extra employment costs and this is already having an impact on future recruitment decisions and investment plans.

“I welcome the confirmation that the government intends to reset the relationship with the EU. In doing so, it must work closely with the cold chain to fully understand the impact on food and medicine supply and on food inflation.”

Planning

Nick Diment, director of planning consultants Boyer commented: “The Chancellor’s speech has put considerable faith in the planning system to deliver economic growth.

I don’t question the ability of planning to deliver, but I have two major reservations in relation to today’s announcement: firstly, even with the proposed reforms, is the planning system sufficiently unambiguous to enable such growth, and secondly, what next?

“Many politicians refer to ‘cutting red tape’ to deliver much-needed change. But it is important to consider why the red tape exists - what is it intended to protect, and how will the system will function in its absence?

“For example, in using Simplified Planning Zones to fast-track planning applications, will the necessary scrutiny be lost?”

“We also lack a standard methodology for assessing employment need. Simply observing trends is of little use bearing in mind the curveball that Covid has thrown at us: we cannot look at patterns that have emerged over the last decade because sectors are fast moving, particularly industrial and logistics, where policies need to be more agile.”