Industry responds to new government first steps

The new UK government is getting to grips with its road freight and passenger transport brief, as well as its wider logistics remit, following this month’s general election – with a new ministerial team in place at the Department for Transport (DfT), and a series of pledges in the King’s speech set to have a bearing on the future of the sector.

Earlier this month, the Road Haulage Association (RHA) managing director Richard Smith congratulated the new transport secretary Louise Haigh on her appointment at the helm of DfT.

Ms Haigh, who has been shadowing the role for Labour since 2021, replaces Conservative predecessor Mark Harper, who lost his seat at the election. She will be shadowed in the role by Conservative Helen Whately.

“We look forward to continuing our good working relationship with [Louise Haigh’s] team in the months and years ahead to support our vital industry and to help deliver economic growth,” said Richard Smith.

“Ninety percent of freight is moved by road so it’s vital the government delivers an infrastructure programme which ensures our sector can move people and goods efficiently and effectively.”

During the election campaign Ms Haigh pledged that a Labour government would fix one million potholes on the road network per year, having accused the Conservative administration of failing drivers over “14 years of neglect”; and also pledged to break down planning barriers to ensure infrastructure upgrades were delivered in a timely fashion and within budget.

Joining Ms Haigh in the transport department is Lilian Greenwood, the new roads minister, who was also shadow transport secretary between 2015 and 2016, before going on to chair the transport select committee from 2017 to 2020.

Her appointment has been welcomed by the Asphalt Industry Alliance (AIA), which said it looked forward to working with the new ministerial team to improve the condition of the local road network.

“Given the £14.4 billion highway repair backlog in England alone reported in our Annual Local Authority Road Maintenance (ALARM) survey report this year, it’s clear that the incoming [transport secretary and roads minister] have a considerable challenge to address that funding gap in order to deliver tangible improvements to the local road network by the end of the Parliament,” said AIA chair David Giles.

“Nevertheless, we are encouraged by Lilian Greenwood’s appointment as she is acutely aware of local road funding issues, having led an inquiry on the subject in 2018 – to which we submitted evidence – when she was chair of the transport select committee.”

A first step, he said, would be providing clarity for local authorities on whether the new government’s manifesto pledge to spend £65 million each year is in addition to the funding reallocated from Network North funding announced last year by the previous government.

“Local authorities have built the £8.3 billion announced by the previous administration into their budgets and are relying on it to begin tackling their maintenance backlog. Plus, more detail is needed on how maintenance funds will be rolled out and if there will be an effective ring-fence to ensure improvements.

“The AIA has long called for sustained, targeted and accountable funding for local roads. Only by having a secure long-term funding horizon will local highways teams be able to plan effectively and carry out maintenance work in the timeliest way to the greatest benefit of all road users and the public purse.”

The RHA has welcomed various elements of last week’s speech at the state opening of parliament by the King, outlining the new government’s planned legislative programme.       

“We are pleased that planning regulations are set to be reformed through the Planning and Infrastructure Bill,” said RHA’s Richard Smith.

“We’ve long called for changes to the National Planning Policy Framework to help unblock and speed up proposed developments and we look forward to seeing how this will benefit communities and businesses.

“It’s vital that much-needed road and infrastructure improvements are delivered to support growth, and that commercial vehicle drivers have access to more safe and secure parking and roadside facilities.”

He also welcomed the National Wealth Fund Bill which he said could support the sector in its decarbonisation efforts through green financing, and with port development.

“We’re keen to hear more detail from the government on their plans and timescales,” he added.

“We are strong advocates of metro mayors and combined authorities, recognising that they are invaluable for getting things done locally on transport and employment initiatives. This is why we welcome the announcement of the English Devolution Bill which will give regions greater autonomy to support local commerce.

“The Skills England Bill pledges to reform the Apprenticeship Levy which has long disadvantaged firms in our sector applying for funding. We’re campaigning for greater flexibility and access for our industry through a skills levy, and we’re confident the establishment of Skills England can make this a reality.

“We will be closely monitoring the Employment Rights Bill to ensure that labour market reforms are not rushed through and do more harm than good.”

Commenting further on the legislative programme, Mr Smith added: “The government has pledged to consult with industry widely on the measures it announced. While delivering better training and secure jobs is a common objective for both business and government; listening to industry voices and exploring more details is vitally important.

“To give firms the confidence and clarity they need to invest, we want government to work closely with us. The first one hundred days will be an important test to see if early actions match early words.”

Meanwhile, Logistics UK said the new government would need to place “urgent emphasis” on resolving post-Brexit border arrangements regarding goods movements, or risk seeing holiday traffic queues pose a regular threat to the supply chain.

Kevin Green, Logistics UK’s policy director, said: “We had been discussing how the UK’s borders with Europe are to work effectively with the Conservative government for some time, but important clarifications and decisions have still not been addressed.

“This now means that the issue is a critical one that needs urgent action from the incoming government, not least because the disruption caused by the introduction of Operation Brock to roads in Kent will become the rule, rather than the exception, adding time and cost to journeys to the Channel ports.”

Top of the industry’s concerns, says the organisation, is the forthcoming introduction from October of the new European Entry and Exit Scheme (EES) – which is set to see all non-EU passengers, both private and commercial, needing to undergo biometric scanning at the UK’s juxtaposed borders at the Short Straits, a critical UK EU supply chain route.

This will result in additional processing time at the border, Logistics UK warned, leading to longer queues, delays and congestion.

“The strategic road network in Kent is already fragile,” said Mr Green.

“If the new European EES is introduced in October, with no ability to register in advance via an app to take pressure away from the border, then freight and trade will be severely impacted.

“The clock is ticking and there is an urgent need for the new government to accelerate diplomatic engagement with the French government and European Commission to secure a delay and ensure measures are in place to mitigate the impact. There is no time to waste if the movement of goods between the UK and EU is to remain as frictionless as possible.

“As traffic increases as a result of summer holidays, some delays to freight movements are inevitable, but our members need and deserve government to take a pragmatic approach and work closely with our European neighbours to iron out the potential problems the new system will cause that our industry has been highlighting since the Brexit vote.”

Sue Percy, CBE, chief executive of the Chartered Institution of Highways & Transportation, said her organisation hoped a number of the bills announced in the King’s speech would “begin to provide the certainty and a clarity of vision that will support the highways and transportation sector”.

“We are pleased to see that the priorities we identified in our manifesto (including improving and streamlining the planning system, investing in skills, improving bus services and sustainable transport networks) have been included in this legislative agenda,” she added.

“CIHT will be reaching out to the government to offer support, advice and technical expertise to deliver on these aims.”

On her first official visit, the new transport secretary Louise Haigh visited Greater Manchester, where she pledged to help deliver better bus services by allowing local transport authorities to take back control through franchising or public ownership, thereby aiming to create and save vital bus routes.

Ms Haigh met with Andy Burnham, the mayor of Greater Manchester, to discuss how the successes of the region’s Bee Network of buses could be replicated across the country to boost passenger numbers and improve service provision.

“Buses are the lifeblood of communities, but the system is broken,” she said.

“Too often, passengers are left waiting hours for buses that don’t turn up – and some have been cut off altogether.

“Change starts now. This new government will give local leaders the tools they need to deliver better buses up and down the country.”

Graham Vidler, CEO of the Confederation of Passenger Transport, said: “The industry stands fully behind the objectives of growing the nation’s vital bus network and improving passengers’ experiences.

“We look forward to working hand in hand with the government to deliver change which benefits passengers across the whole country and drives swifter progress towards the UK’s climate targets.”