30th April 2025
“The logistics sector looks set to benefit from the government’s growth agenda and its ambitions to streamline infrastructure development. Technological innovation in supply chain management and warehousing, along with planning reform and a more strategic approach, mean that this is an exciting time to operate in, and develop for, the sector.”
CBRE has published its UK Logistics Market Summary Q4 2024.
JLL has published its Global Real Estate Perspective February 2025 for the logistics sector.
Barclays Corporate Banking has published a 2025 Outlook for Manufacturing, Transport and Logistics.
The government has announced approval of the Development Consent Order for the Lower Thames Crossing. Logistics UK Chief Executive David Wells OBE says it will drive growth across the whole economy: “Businesses up and down the country are currently hamstrung by delays crossing the Thames… industry is united in its backing for this vital trade route. When completed, it will unlock UK logistics, drive growth and help keep supply chains moving across the whole country.”
On 26 February 2025, the senior leaders of 30 major UK businesses wrote to Business and Trade Secretary Jonathan Reynolds, urging him to acknowledge the critical role that effective supply chains play in all parts of the economy, and asking for the logistics sector represented on the Industrial Strategy Council.
In a submission to the Treasury on 10 February 2025, the UK Warehousing Association called for the Generation Logistics programme to be extended and for the Freight Innovation Fund to be included in the Government’s long term spending plans. This article from The Chartered Institute of Logistics and Transport analyses the impact of the Generation Logistics initiative over the last year.
The Department for Transport (DfT) is developing a strategy which will set the direction for how transport should be designed, built and operated in England over the next 10 years. In a submission to the DfT dated 20 February 2025 (available to Logistics UK members), Logistics UK called on the government to produce a co-created logistics roadmap to net zero that includes measures to maximise the use of low carbon fuels across all logistics modes, and for the modernisation of logistics vehicle regulations, from road to drones, to enable the movement of goods in the most productive, strategic and green way. The submission also requests support for city regions to deliver efficient urban logistics to drive growth, opportunity, decarbonisation and innovation, and urges the DfT to provide local and combined authorities with a clear national framework.
The Competition and Markets Authority (CMA) is investigating the acquisition by GXO Logistics, Inc. of Wincanton Plc. It’s initial findings (19 February 2025) are that there are competition concerns. The parties have responded to the CMA’s initial findings, and the statutory deadline for the CMA’s decision under this investigation is 25 June 2025.
The government has published a summary of responses to the draft climate change adaptation strategy issued by the DfT.
On 25 March, the DfT launched its new maritime decarbonisation strategy. The strategy includes the UK emissions trading scheme being extended to maritime and prioritises fuels of the future and shore power. To support this, DfT has published two supplementary calls for evidence: Net zero ports: challenges and opportunities call for evidence and Decarbonising smaller vessels call for evidence.
A key tenet of the UK government’s growth and net zero strategies is the drive towards a circular economy. We’ve previously reported that the Circular Economy Taskforce published its Terms of Reference and confirmed that a circular economy strategy, underpinned by a series of roadmaps for reform in different sectors and their supply chains, will be forthcoming by autumn 2025. As of 27 March, the government has confirmed that the Taskforce will focus, as a priority, on the following 5 sectors: textiles, transport, construction, agri-food and chemicals & plastics.
The government is considering responses to its consultation on the transition to zero emissions vehicles (ZEVs), and the commitment to end the sale of new cars powered solely by internal combustion engines (ICE) by 2030. The consultation focused on phasing out petrol and diesel vehicles and refining the ZEV Mandate. One to watch.
The European Commission has published its Industrial Action Plan for the European Automotive Sector, which outlines measures to strengthen competition and accelerate the transition to zero-emission mobility in the European automotive industry. One area of focus is accelerating the uptake of ZEVs in corporate fleets. The Plan describes eliminating subsidies for fossil fuelled vehicles as “instrumental” to that aim.
The Zemo Partnership has published a report on accelerating the decarbonisation of commercial vehicles in Wales.
Sky News has reported Amazon’s plans to trial drone deliveries in the UK. Prime Air, is already operating in two locations in the US, but Amazon has confirmed it’s submitting a planning application to build drone flight operations at its fulfilment centre on the outskirts of Darlington, and is seeking clearance from the Civil Aviation Authority for drone flights.
“Take-up of commercial opportunities afforded by drone innovation is increasing. Drone law and regulation is developing to keep pace. In this article, we highlight some of the key drone laws and legal issues (including GDPR/data protection) impacting drone operators in the UK today.”
The BBC has reported that a new type of asphalt, designed with AI and made from biomass waste, can mend its own cracks without the need for maintenance or human intervention. Scientists believe it could be a solution to both achieving net zero and the UK’s pothole crisis.
90% of the sustainable aviation fuel (SAF) used by British planes last year came from used cooking oil imported from China, official figures show. However, supply is expected to dry up, with China due to impose a mandate later this year on how much SAF its airlines must use.
A judicial review challenge of the government’s Jet Zero strategy has opened at the High Court. Climate campaigners Possible and Group for Action on Leeds Bradford Airport argue the strategy relies ‘too heavily on unproven technologies and carbon offsetting’.
Electro-methanol is produced by combining green hydrogen with captured carbon dioxide. It has a closed carbon cycle, only emitting the CO2 it captures during production. Hellenic Shipping News has reported (18 March 2025) that its poised to become a game-changer for decarbonising the shipping industry.
The government is consulting on significantly reforming the railway system, including plans to establish Great British Railways.
The Foreign, Commonwealth & Development Office confirmed, on 14 March, that the EU plans to introduce the Entry/Exit System in October 2025 (the specific start date is yet to be confirmed).
Import Control System 2 (ICS2), the new safety and security information system for movements into Northern Ireland and the European Union, has been live since 1 April 2025 for rail and road carriers. ICS2 requirements will become fully mandatory from 1 September 2025. Before sending goods, carriers need to know which Entry Summary Declaration (ENS) data must be reported, and ensure sufficient, complete data is submitted. Operators not yet connected must begin necessary IT development, complete mandatory self-conformance testing and connect to ICS2. For more information, see here and here.
Campaign group ‘Fighting Dirty’ has initiated legal proceedings against the UK government (Environment Agency) after an investigation found that millions of waste tyres being exported for recycling are in fact being burned in furnaces. In response, the EA has said it will conduct a review of its approach to waste tyre shipments.
UK Haulier has published an article on the importance of AI-driven manufacturing security systems in the road haulage industry.
We’re seeing an increasing amount of hype about ‘agentic AI’ – one of the top tech trends for 2025. The government’s recently published AI playbook for the public sector describes agentic AI as ‘autonomous AI systems that can make decisions and perform actions with minimal human intervention’. The UK’s AI Opportunities Action Plan refers to these systems, saying that ‘the chatbots we are all familiar with are just an early glimpse as to what is possible’.
Amazon has introduced Alexa+, its next-generation assistant powered by generative AI and with agentic capabilities ‘which will enable Alexa to navigate the internet in a self-directed way to complete tasks on your behalf’.
The data centre sector presents significant opportunities and is a key focus of growth for many investors, developers, contractors, energy operators, landowners and government. Delivering and operating data centres involves a range of challenges in respect of infrastructure, energy and construction, as well as commercial, technical and operational matters. Principal among these, and considered here in more detail, are challenges associated with securing access and connection to utilities, necessary consents and the environmental impact of the power and water required to run a data centre.
“As demand for digital infrastructure accelerates, data centres are becoming critical assets – but delivering and operating them successfully requires navigating a complex landscape of planning, energy, construction, ESG and technical challenges. Success depends on strategic coordination across a variety of legal and commercial disciplines and a sector focussed approach is required to turn these challenges into opportunities for long-term sustainable growth.”
On 24 February 2025, the Ministry of Housing, Communities and Local Government (MHCLG) updated the planning practice guidance to reflect the changes made to the NPPF published in December 2024.
On 27 February, the government published its response to its consultation on the proposed reforms to the National Planning Policy Framework and other changes to the planning system.
The Planning and Infrastructure Bill has been introduced in Parliament. It aims to streamline planning and speed up building. See this guidance. Key planning points include:
The government has announced it will consult on new plans to narrow the scope of statutory consultees in the planning process, and make the heads of “key” consultees report on their performance directly to the Treasury. Reform would:
The high profile DHL Towcester warehouse planning inquiry has heard closing submissions and a decision is awaited. One to watch.
The government has published the National Biodiversity Strategy and Action Plan for 2030. It outlines the government’s commitment to halting and reversing biodiversity loss; sets 23 targets aligned with the Global Biodiversity Framework; details actions and strategies for each UK country and the UK Overseas Territories; and establishes mechanisms for tracking progress and updating.
A year after the initial implementation of biodiversity net gain, Carter Jonas has published research, Biodiversity Net Gain: Navigating the Evolving Market, exploring the impact of the change in the law on landowners, land managers, developers, local authorities and environmental organisations.
The government has announced plans to make “common sense changes” to the Habitats Regulations and the Wildlife and Countryside Act to support the commitment to build 1.5 million homes and advance major infrastructure projects.
The Department for Environment, Food & Rural Affairs and the MHCLG have published a new Planning Reform Working Paper, which proposes a new approach for how “housing and infrastructure development can meet environmental obligations and contribute to nature recovery”. The Paper includes wide-ranging proposed reforms, including in relation to environmental mitigation and nutrient neutrality rules. For example, developers would no longer need to pay for individual site assessments if the impacted environmental features are covered by ‘Delivery Plans’, which are set to be underpinned by a new ‘Nature Restoration Fund’, to which developers could make a one-off payment.
In related news, the district court of The Hague has ruled in favour of Greenpeace Netherlands in its a case against the Dutch government for failing to cut nitrogen pollution. According to ENDS (4 March 2025), the National Federation of Builders believes the case demonstrates that the UK government’s approach to nitrate mitigation is ‘flawed’ and leaves it open to the possibility of similar legal action. (Although a European case, the decision could have a significant impact on UK development – it was the 2018 Dutch nitrogen case which prompted Natural England’s nutrient neutrality advice to local authorities and the subsequent logjam in development ever since.) Nutrient neutrality’s definitely one to watch.
“The skills shortage is one of the biggest challenges currently facing the logistics sector. Our dedicated Logistics lawyers and Technology & Digital specialists are helping logistics clients to implement and operate innovations such as automation, AI and robotics, both to streamline warehousing and supply chain management from a commercial perspective, and to counter reduced headcount.”
James Crayton, Partner, Commercial