British Prime Minister Rishi Sunak said the British economy was “on the right track”, calling at a new logistics hub under construction in Swindon, Wiltshire.
The project is being built on the site of a former Honda car production plant in Swindon, which closed in July 2021 after 36 years in business. With the closure of the plant, 3,000 jobs would have been lost.
Panattoni, a European business expansion and logistics company, purchased the 370-acre site and plans to expand a logistics center known as Panattoni Park Swindon, which “will total 7. 2 million square feet, with a diversity of unit sizes available, either speculatively or for construction. “-Costume Base’.
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Speaking to reporters and Panattoni in Swindon, Sunak said: “In the last five years alone, [Panattoni] started to create over 25 million square feet of new retail area across the country, which is huge for the UK economy. just as the investment here is very vital for Swindon and the region.
“I think it’s a huge vote of confidence in the U. K. and it shows that the work we’re doing to get the economy back on track is paying off. “
This comes days before Chancellor Jeremy Hunt unveils the long-awaited spring budget.
On March 4, Hunt announced a £360 million investment program in the U. K. ‘s production and life sciences sectors, as part of the government’s plan to “grow the economy, build fitness resilience and jobs across the U. K. “
Among those benefiting from the investment are two pharmaceutical companies, Almac and Ortho Clinical Diagnostics, which will get £7. 5 million to expand their production facilities in the UK.
In the autumn 2023 release, Hunt set out his goal to make a total investment of £4. 5 billion available to the automotive, aerospace, life sciences and electric power sectors over a five-year period, starting in 2025.
On 4 March, the Chancellor also announced an accumulation of up to £120 million for the Green Industries Growth Accelerator (GIGA) programme. The government has shown that this fund has grown to almost £1. 1 billion and says the new investment aims to “promote the expansion of low-carbon production chains across the UK, reducing prices and accelerating the transition”.
Responding to the announcement of the £360 million investment plan, Stephen Phipson, chief executive of Make UK, said: “The industry will welcome this announcement as a new impetus for key sectors that will place complex production at the heart of the UK’s economic future.
“These industries will play a key role in addressing many of the demanding social situations we face in a competitive world and highlight what can be achieved through constructive discussion between government and business.
“Together, they are one piece of the puzzle of a fashion business strategy to make the UK a global leader in the key sectors of the future. “
Sectors such as logistics and shipping are very likely to rely to some extent on public finances to cope with challenging situations such as emerging prices and the transition to net zero.
Ahead of the spring budget announcement, Institute of the Automotive Industry (IMI) CEO Steve Nash said: “Although the government took the decision last September to extend the deadline for banning the sale of new petrol and diesel cars until 2035, the passage of the ZEV mandate signed into law in January means that many companies operating in the automotive aftermarket still want to be in a position to Build electric vehicles if they want to be part of the path to zero.
“However, they face significant gadgets and prices and few quick incentives in the form of visitor demand.
“If the government is truly committed to reducing carbon emissions, it will not only have to stimulate the market, but it will also have to make sure that the aftermarket sector is well supplied and trained for EV drivers.
“Therefore, we expect the Treasury to seriously reinstate the super-deduction (130% capital deduction in the first year for eligible plant and machinery assets and 50% deduction in the first year for eligible special-rate assets), as well as reduce price lists to help automakers. invest in equipment and capabilities for new technologies.
“The full one-hundred-percent capital allocation for the first year for eligible plant and machinery assets filed in March 2023 is not sufficient. “
For more information on electric cars in the logistics sector and for a Q&A consultation with Baroness Parminter of the House of Lords Environment and Climate Change Committee on government policies on electric vehicles, see this article in the March issue of Logistics Manager.
With big names from big-box stores like Wilko to logistics corporations like Tuffnells going bankrupt over the past 12 months, it’s no wonder all eyes are on the March 6 spring budget announcement. The investment will be critical to fostering the expansion of logistics. sector and the prosperity of organizations in the face of economic headwinds.
Keep an eye on the Logistics Manager and April Factor for more data on the spring budget in the coming days and weeks.
IntraLogisteX returns to the NEC in Birmingham on 19 and 20 March 2024, along with robotics and automation, as well as the new Sustainable Supply Chain Exhibition. Click here to learn more about the 3 exhibits and register for this must-attend event. !