Queen’s Speech

Viscount Waverley Excerpts

Wednesday 11th May 2022 Lords Chamber

[Viscount Waverley (CB)]

My Lords, I welcomed the Minister’s opening remarks when she referred to meeting the transport challenges head on. From my perspective, however, the emphasis on people, although undeniably important, misses the crucial category of freight and logistics—the engine room of economic development. This serves as a starter for my remarks this evening.

While the signing of free trade agreements by the Department for International Trade has been centre stage, a challenge is the ability of other departments to ensure that enablers are ready to exploit them. By their sheer nature, logistics and supply chains must be an integrated system of road, rail, maritime and air. In the UK, the capacity of this system is severely limited, meaning that when one element of the system is restricted, such as through a port closure or the routine maintenance of a runway, it puts undue stress on the rest of the system. There is no cross-modal resilience in the system to provide relief should one part of the system go down. Capacity for freight and logistics in the UK is challenged whether it is on the road, in the air or at sea. To address these freight-related challenges, the Department for Transport is working on the future of freight strategy and has canvassed industry trade associations for feedback. The plan, as I understand it, is to set out how government will work with freight and logistics companies to

“achieve a cost efficient, reliable, resilient and environmentally sustainable freight transport sector”.

The future of freight strategy is a huge piece of work and the DfT has an almighty challenge to adapt to the demands of the future. My fear is that currently government, the industry and those who represent it have a propensity to work in silos, with not enough consideration of the need to view freight and logistics infrastructure holistically. There is therefore an urgent need for Parliament to join the discussion and work to ensure that the national interest is well thought through and implemented.

The industry is made up of five categories—aviation, including airports; maritime, including ports; rail; road, including both heavy goods vehicles and vans; and land, which encompasses buildings and space, to which I add warehousing—with a sevenfold set of priorities: raising the status of freight; optimising infrastructure; supporting the transition to net zero; investing in people and skills; resilience; planning and levelling up; and data and technology, with a chance to bring the digitalisation of cross-border trade and including the Government’s flagship electronic trade documents Bill.

Taking each of the categories briefly in turn, I shall start with aviation. The UK has been facing capacity constraints at key airports for a number of years. This is most prevalent at London Heathrow, which has seen its expansion plans delayed for a number of years by the pandemic. This severe lack of capacity will undermine the Government’s aspirations to grow global trade and boost exports. Cargo capacity must therefore be factored into strategic growth plans, with existing facilities upgraded and practical consideration of general airport capacity, with landing and take-off slot availability for cargo at London airports and night flights viewed as critical. I have viewed this at first hand courtesy of DHL, as has the Minister.

On maritime, ports around the country are a key asset to the UK in attracting trade and jobs to the country and enabling the green economy. It is essential that these assets are supported now and invested in appropriately in order that the UK reaps the rewards in the long term. The Government should work with ports to ensure that regulatory frameworks support high levels of private sector investment. With the UK being an island nation and with 90% of everything we buy arriving by sea, the maritime supply chain is critical for our global competitiveness. The UK has excellent port capacity and facilities; however, those are not matched by inland road and rail connections. The industry is campaigning for world-class multi-modal port connections to ensure that goods move seamlessly and quickly to and from overseas markets.

The UK also has the capacity for goods to be moved by coastal shipping and inland waterways, which already account for 15% of UK domestic freight. With more effective government support to promote modal shift and policy frameworks that protect and expand our inland waterway freight infrastructure, these modes could grow and reduce pressure on our congested roads. Noble Lords should add to the mix that the Port of Tyne, to which I am travelling later this month, is playing a leading role on behalf of the industry in decarbonising and digitising the supply chain.

Rail freight offers a more sustainable low-carbon option to move freight, but currently rail accounts for only 9% of domestic freight. The demand is there; rail freight is growing again following a period of decline, and Network Rail studies indicate that there could be over 30% growth over the next 15 years if enough capacity were provided. To facilitate this, we need more investment in the strategic freight network and more electrification. Freight also needs better access to existing capacity, including a shift from passenger to freight where freight would be a better use of the network.

To ensure that our goods can be delivered by road, the Government must support the sector and the urgent delivery of the 1,411 overnight lorry parking spaces identified as being needed immediately in England in the 2017 National Survey of Lorry Parking. The number of spaces must be increased, alongside improved security and standards for lorry parking at motorway service areas to be prescribed in the revised government guidance. Spending for road infrastructure needs to continue to be well-planned and stable over the long term. Government projections show road traffic continuing to grow, so this must be reflected in road investment strategy 3 and beyond. The UK’s transport infrastructure and services are not currently world leading, so investment must continue to help improve the UK’s road network.

Finally, the planning system has been a cause of major frustration for logistics for many years across all modes. Problems include the loss of freight infrastructure to housing development, the slow process for gaining approval for new freight infrastructure and additional restrictions on freight operations where housing is permitted near existing facilities. Logistics land must be safeguarded.

In addition, the planning system must permit the expansion of logistics infrastructure, provided that clear criteria are met. Too often, logistics infrastructure with clear economic benefits which can be delivered within environmental constraints has been delayed due to overly lengthy local planning rules and procedures. I note with interest the reference in the Queen’s Speech to how

“The planning system will be reformed to give residents more involvement in local development.”


That can be taken in two ways and might cause conflict between economic development and housing agendas.

Most immediate is the need for Freight Council reform. It is a body currently made up of DfT officials and trade association representatives. Proposals call for greater industry representation on the Freight Council. The DfT should be encouraged to drive a co-ordinated government approach to the freight and logistics sector by establishing a cross-modal logistics directorate within the department, and to bring improved understanding of the freight system to government operations by exploring the use of secondment opportunities between business and government.

There is much to do, and time does not permit me to advance a more strategic comment. However, I have welcomed this opportunity to flag up an essential area requiring urgent consideration and hope that I have made the case that this is a legitimate sector of the economy which should have proper parliamentary scrutiny. More immediately, I am honoured to be launching a new wing and course at Boston College next week dedicated to investing in people and skills for freight and logistics. The college has rightly recognised the importance of the industry and is to be commended for running with this particular ball.