LOGIC: Logistics Sector Update - Autumn 2025
The UK Industrial Strategy 2025
By Jessi Tamber and Lynsey Inglis
The Government published an Industrial Strategy plan in June 2025 mapping out their aims and plans to increase business investment and growth of industries for the future. Whilst the plan does not specifically refer to logistics, the vast majority of the strategies are directly relevant. We have summarised three of the Government’s key considerations below:
Strategic Sites Accelerator and Supply Chain Centre
The Government’s industrial strategy specifically refers to the importance of the freight and logistics sector, acknowledging its support for local economies outside of London and significant contribution to the UK economy (£79.8 billion in 2023). The strategy points to the various infrastructure upgrades across the country and the intention to deliver a specific plan for freight and logistics in 2025.
The Government plans to implement the Strategic Sites Accelerator to identify, develop, and secure financing for investible projects in city centres and strategic industrial sites. This initiative aims to maximise the potential of Industrial Strategy Zones by showcasing attractive opportunities for private sector investment. With £600 million allocated for deployment, the initiative will expedite bringing sites to market through various measures, including land remediation, transport improvements, and planning interventions.
The Government is poised to establish a National Supply Chain Centre as a key initiative within its industrial strategy, aimed at bolstering supply chain resilience. This centre will coordinate public and private investment in logistics and manufacturing infrastructure, acting as a central hub to assess and secure critical supply chains. It will provide enhanced support for companies navigating global challenges, serving as a primary point-of-contact for businesses to engage with government resources. Additionally, the centre will help identify funding priorities to ensure economic resilience, thereby strengthening the UK's ability to adapt to and thrive amidst global economic shifts.
Each of these efforts are part of a broader strategy to enhance regional economic growth and resilience, leveraging local strengths and strategic planning to create new opportunities for business expansion, something that will be key to the logistics sector as they benefit from streamlined investment in the industries they serve at a local and national level.
Connectivity
The Government's strategy recognises that high industrial electricity prices and lengthy grid connection waiting periods are significant barriers to industrial investment in the UK, something that is of a key relevance to the logistics sector. Industrial electricity prices are notably higher than those in competing economies across Europe and North America, and the issue is exacerbated by prolonged and bureaucratic processes for grid connections. To tackle these challenges, the strategy includes several key initiatives aimed at reducing electricity costs and expediting grid connections. Energy-intensive companies will benefit from price relief through the British Industry Supercharger, which offers a 100% exemption from the renewable ELL levy and a compensation scheme for a portion of network charges. Additionally, the Government plans to accelerate grid connection timelines by implementing a Connections Accelerator Service for major investment projects and and will also utilise new powers within the Planning and Infrastructure Bill. These efforts will primarily focus on projects deemed strategically important by the Government. These initiatives link to the broader Clean Energy Superpower Mission, which aims to enhance energy security and reduce electricity bills in the long term by investing in clean energy and strengthening connections to the EU energy market.
Clean Energy
The Government confirms within the Industrial Strategy paper that it aims to double the investment in clean energy to £30 million by 2035. The plan is to leverage the UK's strengths in renewable energy, high-value manufacturing and skilled workforce to drive economic growth and create job opportunities across the country. The strategy focuses on reforming the business environment to enhance resilience, foster innovation and reduce investment costs in clean energy supply chains.
The Government plans to increase investment in frontier clean energy industries, such as wind (onshore, offshore, and floating offshore), nuclear fission, fusion energy, carbon capture usage and storage (CCUS), hydrogen and heat pumps. Each of these industries is poised for significant growth, with the UK positioned as a leader due to its existing infrastructure, research capabilities and skilled workforce.
In order to support this growth, the strategy confirms that the Government is willing to commit substantial investment to various initiatives including measures to break down barriers to investment such as removing planning system blockers and ensuring delivery of key infrastructure like grids and ports etc. The strategy further emphasises the importance of international collaboration to diversify supply chains and support clean growth finance with the UK. Overall, the clean energy section of the strategy sets a clear path for the UK to become a world-leading exporter of low-carbon products, services and innovation.
Conclusion
We anticipate that the Government may publish a logistics focused strategy in the near future and hope to see them address significant concerns impacting the logistics sector such as transport bottlenecks, regulatory/trade barriers and labour shortages.
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