As we move into 2026, it is increasingly clear that the UK needs an economic strategy that looks beyond short fiscal cycles and focuses on productivity, resilience and long-term competitiveness. Warehousing and logistics sit at the centre of this challenge. Our sector keeps supply chains moving, underpins regional economies and has the potential to drive national growth. But we simply cannot fulfil that role if economic policy creates uncertainty or piles on additional costs.
In November, assessments from the Office for Budget Responsibility highlighted a familiar concern: the UK is still struggling with weak productivity growth and elevated business costs. Inflation is expected to settle rather than fall sharply. Growth projections remain modest. In this climate, businesses need policy stability and clarity on the direction of travel. Instead, many operators are facing rising rates bills, higher labour costs and ongoing energy volatility. These pressures are especially acute for warehouses, which are asset heavy and essential to the wider economy.
The Autumn Budget provided some support for investment through capital allowances and incentives for upgrading equipment and buildings. These are welcome and will matter for companies planning automation, robotics, advanced materials handling or energy improvements. However, they sit alongside tougher financial headwinds that will continue throughout 2026. UKWA has made it clear that rate increases on larger sites are landing at exactly the moment when firms need encouragement to modernise, expand and contribute to local growth. It is difficult to build long term plans if every year brings a new wave of unavoidable operating costs. But 2026 could and should be a turning point for UK economic policy. Warehousing offers some of the clearest opportunities for productivity gains. Automation adoption is accelerating but uneven. Skills are improving but still in short supply. Energy management is becoming more strategic as companies adopt solar, battery and electrified fleets. These are areas where coordinated policy can make a decisive difference.
Three priorities stand out. First, economic policy needs to align with the real investment cycles of industrial businesses. Warehouses plan years ahead, not months. They need certainty on tax, rates, energy and planning so they can commit to major upgrades with confidence. Second, the government should continue to encourage clean energy adoption and grid readiness. Rooftop solar and on-site power solutions are becoming critical infrastructure for an automated economy. Third, a national focus on skills and particularly apprenticeships, will be essential. Modern warehousing requires data capability, technical expertise and leadership development. Targeted support in all three areas, is our best hope to unlock significant productivity improvements.
If the UK wants to compete internationally, warehousing must be recognised as a strategic sector. It is already a major employer, a major real estate category and a major contributor to supply chain resilience. The right policy choices in 2026 can strengthen our economic position and help us deliver the productivity boost that the UK has been seeking for more than a decade.
Clare Bottle
UKWA, CEO
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