It is hoped that the return of some political certainty following the Conservative Party’s overwhelming victory in last December’s General Election will encourage much needed investment in the logistics sector; with welcome signs already that the economic climate has been boosted by the result. Certainly, UKWA members that I have spoken to since the election have expressed optimism that they and the clients they serve can move forward with a greater degree of confidence now that much of the doubt that has surrounded the UK’s withdrawal from Europe since 2016’s referendum is beginning to recede.

But, while our exit from the EU will be confirmed by the end of January, everyone accepts that there is plenty of hard work ahead before we ‘get Brexit done’.

The nature of Britain’s future relationship with the EU has yet to be defined and the Government’s pledge that the Brexit Transition Period will not be extended beyond December 2020 means that Mr Johnson and his team have until December 31, 2020 to prepare the UK for its new relationship with the EU.

Many informed observers warn that, given the complex nature of trade agreements, the Government’s ability to reach a deal within the timeframe available has to be in doubt and so the risk of the UK leaving Europe on WTO terms remains a possibility.

As UKWA has consistently highlighted, a withdrawal to WTO terms would almost certainly result in significant supply chain disruption. When you consider, for example, that if Britain leaves the EU on WTO terms it is estimated that some 200 million extra customs declarations would be required, the implications of a ‘no deal’ for the movement of goods through our ports are obvious.

I know, from meetings I have attended with various Government departments since the election, that there is real confidence that a deal will be struck that avoids the WTO scenario and we must all hope that this optimism is not misplaced.

The logistics industry will also be keeping a keen eye on how the Government will approach the issue of migrant workers entering the UK during the coming negotiations.

In common with the construction, healthcare and hospitality sectors, the logistics and warehousing sector desperately needs access to low-skilled, low-cost labour. With low youth unemployment figures in the UK, we look to the EU to supplement our workforce and UKWA will continue to press the Government to ensure that this source of labour remains available to UK logistics operators after the UK has cut its ties with the EU.

UKWA remains committed to supporting the Government in shaping practical solutions to the issues that lie ahead, but no one should underestimate the scale of the task that remains before all of us; and clearly Brexit planning should remain at the top of the agenda for all those companies who trade with the EU.

UKWA will continue to keep its members informed of legislative changes and the support provided by HMRC and other governmental departments and we will continue to work alongside the Government – offering insights from the ‘frontline’ and providing a voice for our industry.

Peter Ward

UKWA, CEO

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