As the UK Chancellor prepares to deliver the Comprehensive Spending Review on 11 June, industry leaders are urging the government to prioritise targeted freight and logistics investment. The Chartered Institute of Logistics and Transport UK (CILT UK) says small-scale infrastructure upgrades could unlock significant gains in productivity, trade and emissions reduction.
CILT UK argues that modest, well-chosen rail and road projects would help achieve the UK Government’s growth and net-zero ambitions, without breaking the bank or disrupting the forthcoming Comprehensive Spending Review. With the logistics sector relying on publicly funded infrastructure, the institute has warned against overlooking freight in the government’s long-term funding decisions.
Spending Review sets the tone for long-term investment
The UK’s Comprehensive Spending Review, due to be announced by Chancellor Rachel Reeves on Wednesday (11 June) will set departmental budgets for the next four years. For transport, this includes determining which rail and road infrastructure projects will proceed and at what scale. The Review is a key mechanism through which the UK Government aligns spending with its strategic commitments, including carbon neutrality by 2050 and a 75% increase in rail freight by the same date. It could be policy for a generation, and industry at large is eager for the right decisions to be made this week.
The logistics sector has high stakes in the outcome. While freight and logistics in the UK are almost entirely privately operated, they are heavily dependent on public investment in road, rail and port networks. Industry stakeholders argue that without targeted funding, the sector cannot deliver on the government’s ambitious growth or climate goals.
Smaller projects, bigger impact
CILT UK is calling on the government to shift its focus toward smaller, high-impact infrastructure projects. These, it argues, can deliver faster results, greater cost-efficiency, and improved connectivity for the UK’s freight corridors. Key among these are rail links connecting major ports and quarries to regional and national markets.
“Freight and logistics are crucial to the country, acting as the backbone of international supply chains and sustaining economic activity,” said the institute in a statement. “Efficient supply chains are essential to support businesses and jobs and to ensure consumer needs are met.” The group notes that these small-scale investments can yield “improved productivity, international trade connections, and a more robust construction industry”.
Plugging the London Gateway electrification gap
Julian Worth, Chair of CILT’s Rail Freight Forum, pointed to gaps in the UK’s rail electrification network as a prime opportunity for targeted investment. “We all know the Chancellor is facing some tough decisions,” he said. “If we are to achieve our economic growth, housing and net zero targets, we must invest in our freight and logistics infrastructure. To make best use of the limited funds available, funding should be prioritised on projects that deliver maximum returns with the highest benefit-to-cost ratios.”
Worth highlighted one standout example. “Electrifying just three miles of railway from London Gateway – the UK‘s fastest growing container port – at a cost of less than £10m, would allow trains to be hauled by electric locomotives all the way to Manchester, Liverpool, Cardiff and Glasgow.” Such targeted upgrades could transform the productivity of freight routes and reduce reliance on diesel haulage.
Fast delivery, not mega projects
CILT UK also stressed the importance of choosing deliverable projects over politically ambitious ones. Long timelines and ballooning costs have characterised many recent UK infrastructure programmes, with benefits delayed or diminished by overcomplexity and underfunding. No one would argue if Worth had the HS2 high-speed rail project in mind, or the scandal of Scotland’s over-priced and late-delivered ferries.
“Recent investment in infrastructure has seen very extended delivery times,” noted Sue Terpilowski, Chair of CILT’s Public Policy Committee. “We believe the emphasis going forward – and certainly for the course of this Parliament – should be on small schemes which can be delivered within three years from authorisation to delivery, rather than the ‘mega’ projects of recent decades.”
High return on modest spend
The case for these smaller schemes is also environmental. Electrically hauled trains offer near-zero carbon emissions when powered by renewable or nuclear electricity. With faster acceleration and greater efficiency, electric trains also increase network capacity and reduce operational costs. “One train with one driver moves 50–75 HGV loads [heavy goods vehicles – semis],” noted CILT UK’s statement. “This greatly increases workforce productivity.”
Governments around the world are seeking to balance climate action with fiscal restraint. The UK Government has already set stringent targets, which have come under financial pressure lately. CILT UK says smart, strategic investment in freight infrastructure offers one of the best returns on public spending. However, with transport in line behind defence, health, welfare, education and other spending priorities, the Spending Review could be pivotal in the UK logistics sector’s future.