Business, Freight News, Logistics
Double your money, Logistics UK tells government
[ October 27, 2026 // Chris Lewis ]Every £1 of economic activity directly generated by the logistics sector more than doubles its value to provide a further £1.04 across the wider economy, according to new research from business group Logistics UK.
UK logistics: a critical driver of growth and investment, produced in association with Capital Economics, also says that a 1% increase in logistics’ share of the economy could attract £30 billion of foreign investment into the UK. The logistics sector underpins £356 billion of economic activity, 5.3 million jobs and £65 billion in tax revenues across the UK, as well as enabling more than £1 trillion of international trade every year.
The report, launched on 27 October at the Houses of Parliament on the eve of the Budget, examines the indirect, induced and catalytic impact of the logistics sector on the UK economy. It shows that the sector’s economic impact extends well beyond its £175 billion direct annual contribution, and that logistics businesses and workers contribute an additional £181 billion to the economy each year through their own personal spending activity.
Logistics UK chief executive Ben Fletcher said: “When considered alongside the sector’s direct financial contribution, significant tax contributions and role as a major employer, it is clear that logistics is not simply a critical sector in its own right, but an enabler of prosperity across the whole economy. 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.”
The analysis also quantified a well-documented link between a thriving logistics sector and foreign direct investment. “International companies invest in countries where goods move efficiently,” continued Fletcher. “Reliable supply chains with good transport networks, warehousing capacity, ports and airports all reduce costs, increase profits and expand market access, and investors know that. 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.”
Tags: Logistics UK