Public Affairs monitoring for week ending 5 June 2026

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Two Ministers and Shadow Secretary address Logistics UK Annual Conference as it launches Logistics Report 2026

Aviation and Maritime Minister Keir Mather MP used his keynote address at Logistics UK’s Annual Conference on 3 June to reaffirm the government’s recognition of the logistics sector as central to the UK economy, highlighting its role in enabling trade, supporting growth and maintaining supply chain resilience during a period of global instability. Speaking alongside Mather were Industry Minister Chris McDonald MP and Shadow Business and Trade Secretary Andrew Griffith MP.

Keir Mather acknowledged that the sector is critical to informed decision-making across government, particularly on issues such as resilience, investment and economic growth. The intervention reflects continued cross-party recognition of logistics’ role in underpinning economic activity, with ministers also highlighting the sector’s performance in keeping goods moving despite ongoing pressures including the Middle East conflict.

This was reinforced by Transport Minister Keir Mather, who said that “the logistics industry remains the cornerstone of our island nation which keeps goods moving and businesses trading”, Industry Minister Chris McDonald, who said “Logistics underpins absolutely all of [the government’s growth sectors]… if these sectors are going to grow, the logistics sector must grow as well”, and Shadow Business and Trade Secretary Andrew Griffith, who called logistics “the connective tissue of our economy”.

Logistics UK also launched the Logistics Report 2026 at the conference assessing the state of the sector, demonstrating the sector’s continued role in supporting the economy: the report showed that the sector’s GVA contribution has risen to £175 billion per year, a 3% increase year on year, and that it employs 2.6 million people, equivalent to 8% of the UK workforce. The summary of the report can be found here.

The annual Sir James Whitehead Address also took place at the conference, where Rachel Wolf, CEO of Public First gave an address about the UK’s current economic challenges and how the government could address them.

Finally, Paul Richards addressed the President’s Council and provided insight on the upcoming Makerfield by-election. You can read our press release on the Annual Conference here.

Department for Transport publish data showing road casualties declined in 2025

The Department for Transport published provisional road casualty data on 28 May, with fatalities falling by 3% to 1,556 and reductions in incidents with heavy goods vehicles (HGVs). The figures continue the longer-term trend of declining deaths but highlight ongoing challenges around serious injuries, with implications for road safety policy, enforcement and infrastructure.

In parallel, the Transport Committee discussed the Road Safety Strategy on 3 June and cited the new data on declining road casualties involving HGVs. Evidence presented showed a 32% reduction in people killed or seriously injured (KSIs) in collisions involving HGVs since 2015, with improvements attributed to industry investment in vehicle safety technology and driver training, as well as regulatory measures such as Transport for London’s Direct Vision Standard. During the session, Jamie Hassall from the Parliamentary Advisory Council for Transport Safety called for a default 20mph speed limit on roads in built-up areas.

Logistics UK welcomed the figures, saying they demonstrate the sector’s commitment to safety and stating that despite progress they will continue to improve safety outcomes and reduce fatalities on the network. Read Logistics UK’s full press release here.

Middle East update: Hezbollah rejects ceasefire and calls for Israeli withdrawal from Lebanon

A US‑backed ceasefire between Israel and Lebanon was announced on 4 June, but Hezbollah rejected the agreement, insisting any deal must include a full Israeli withdrawal from southern Lebanon. Israeli forces have continued military operations in the region, raising doubts over whether the ceasefire can hold in the short term.

The developments come alongside continued tensions between the US and Iran, with the Trump administration indicating that a broader deal with Tehran could be reached in the coming days, though this remains contingent on de-escalation across the region. Ongoing hostilities, including drone strikes targeting infrastructure in the Gulf, continue to highlight the risk of further disruption, particularly to global energy markets and key shipping routes such as the Strait of Hormuz.

To inform our engagement with government and others, Logistics UK has published the latest results of its Logistics Performance Tracker, based on a survey of 129 logistics businesses conducted between 8 April and 22 May

Logistics UK continues to engage with government on the impact of the conflict on the sector.

Also this week

Government

• The government published the proposed Seventh Carbon Budget on 2 June, an 87% emissions reduction target for the period 2038 to 2042, backed by the Climate Change Committee and Environmental Audit Committee. Once approved by Parliament, the government aims to publish a delivery plan setting out how Carbon Budget 7 will be met.
• The Department for Transport (DfT) published a report into the wider economic impacts of road freight improvements on 28 May. It found that road freight improvements deliver their main economic benefits through enhanced supply chain efficiency and reliability. The report will help the DfT make better business cases for investment in road freight infrastructure.
• The Office for Rail and Road (ORR) published its Safe AI Innovation Action Plan on 29 May, which sets out how ORR will enable safe adoption of AI within UK rail and England’s strategic road network. One of the first actions will be clarifying safety risks and regulatory expectations for AI use, which will be published by the end of September.

Parliament

• Lisa Smart MP (Lib Dem, Hazel Grove) held a debate on the role of rail freight on 3 June and said that rail freight is a critical but underutilised part of the UK transport system, delivering economic, environmental, and congestion benefits by reducing HGV traffic. Smart called for greater investment, dedicated capacity, electrification, and stronger policy support to increase rail freight’s share and meet decarbonisation goals. Smart said the Lib Dems are committed to a national freight strategy and that the current Railways Bill does not have explicit protections for freight. Lisa called for the creation and protection of strategic freight corridors. Logistics UK shared its Railways Bill briefing with Lisa Smart ahead of the debate.
  • Luke Myer (Labour, Middlesbrough South and East Cleveland) highlighted infrastructure constraints on the east coast main line where freight is forced to take less efficient routes. He called for upgrades to improve connectivity from key ports and pressed the government to engage on delivering these improvements.
  • Other MPs highlighted the economic, environmental and infrastructure benefits of rail freight, often drawing on constituency examples to demonstrate its role in reducing HGV traffic, congestion and emissions. They called for greater government support to expand capacity, reopen or upgrade infrastructure, improve international connectivity, and ensure workforce conditions are addressed, while emphasising that rail freight should play a larger role in delivering growth, housing and decarbonisation objectives.
  • Lilian Greenwood, Minister for Transport outlined that Great British Railways (GBR) will embed freight at its core through a dedicated board-level freight representative, a central freight team, and a new strategic capacity allocation framework to improve planning and protect network access. Greenwood also confirmed that GBR will be required to deliver rail freight growth targets, and operate under regulatory safeguards to ensure fair, transparent access for freight operators. Finally, the access-and-use policy required by the Railways Bill will be consulted on in September.
• Peers had the Second Reading of the Civil Aviation (Consumer Protection and Regulatory Reform) Bill on 2 June which highlighted the Bill would strengthen powers to accelerate airspace modernisation to reduce congestion and improve efficiency, introduce more flexible airport slot allocation rules to improve capacity and resilience during disruption, and enhance the Civil Aviation Authority’s regulatory powers to create a more agile system.
• During Net Zero and Energy Oral Questions on 2 June Clive Jones (Lib Dem, Wokingham) and Sarah Green (Lib Dem, Chesham and Amersham) asked about further support for businesses with energy costs. The Energy Security and Net Zero Minister Chris McDonald said the government has expanded the British industrial competitiveness scheme and increased discounts on electricity network charges and stand ready to act if market conditions worsen due to the middle east crisis.
• Andrew Snowden (Conservative, Fylde) asked a written question about what savings the reduction in red diesel duty will deliver for rail freight operators. Transport Minister Keir Mather said analysis on taxation is for the treasury, but he reaffirmed the government’s support for rail freight, highlighting its role in supply chain resilience and cost pressures, evidenced by the temporary cut in red diesel duty.

Devolved, regional and local

• Northern Ireland’s Infrastructure Miniter Liz Kimmins has announced a new Harbours Bill on 3 June, which will aim to modernise the legislative and governance framework for Trust Ports allowing them to operate more efficiently, strengthen their contribution to the regional economy and compete more effectively with other ports. The Bill will be introduced to the NI Assembly on 15 June.
• Scottish electric vehicle startup Munro is planning to build a new plant for industrial-use EVs in the UK, the Financial Times reported on 02 June. The company specialises in off-road and heavy industrial use EVs, and it plans to increase production capacity from around a dozen a year to over 100.
• Durham County Council has requested to follow several other councils across England in charging utility companies and highway authorities fees for any disruption caused by roadworks, BBC News reported on 3 June. Similar schemes, which are in operation across places such as London and Kent, would see fees levied against those responsible for disruption on particularly busy stretches of road.

Other

• UK‑based freighter operator European Cargo entered administration on 3 June, citing significant financial pressures driven by rising fuel costs, reduced flying activity and wider working capital challenges, Air Cargo News reported on 4 June. The carrier, which operated long-haul cargo flights using Airbus A340 aircraft, has ceased operations, with its collapse highlighting the acute impact of elevated fuel prices and ongoing market disruption on the air freight sector due to the Middle East conflict.

Coming up

• Manuela Perteghella (Lib Dem, Stratford-on-Avon) secured a debate on road safety in the West Midlands on Tuesday 9 June.
• Hannah Spencer (Green, Gorton and Denton) secured a debate on Energy costs on Tuesday 9 June.
• The European Affairs Committee has a session on EU Dynamic Alignment on Tuesday 9 June.
• The remaining stages of the Railways Bill will be considered on Wednesday 10 June, before it goes to the House of Lords.
• There are Transport Oral Questions on Thursday 11 June.