Public Affairs monitoring for week ending 29 May 2026

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UK-EU progress SPS deal set to deliver £5 billion trade boost per year

The UK government announced on 28 May that it is progressing plans with the EU for a sanitary and phytosanitary (SPS) agreement, with the aim of reducing post-Brexit checks on food, plant and animal products from mid‑2027. The Department for Environment, Food and Rural Affairs (Defra) has also published a series of guidance documents to support businesses in preparing, including one for logistics, hauliers and trade intermediaries.

Under the proposed framework, most agri-food goods moving between Great Britain and the EU, and from Great Britain to Northern Ireland, would no longer require routine SPS checks or specialist documentation. The agreement would also resume trade in previously restricted products such as fresh sausages, burgers and certain shellfish, while simplifying processes across sectors including food production, logistics and veterinary controls.

Exact timings of when arrangements will change are subject to the outcome of ongoing negotiations. The SPS arrangement forms part of a broader UK‑EU “reset” and is expected to improve the speed and reliability of supply chains. Read the Logistics UK press release on the announcement here.

Middle East update: Strait of Hormuz tensions persist amid fragile ceasefire

US forces carried out further strikes on 28 May and accused Iran of a ceasefire breach following a missile launch towards Kuwait and multiple drone threats near the Strait which were intercepted, Tehran responded by targeting a US airbase and warning against further escalation.

Despite increasing tensions, negotiations continued in parallel, with a draft 60‑day memorandum of approved by Iran’s leaders according to US officials – but Trump has not yet signed-off the deal. The memorandum of understanding would: extend the ceasefire; restore unrestricted shipping through the Strait of Hormuz (including mine removal and no tolls); ease the US naval blockade; and open talks on Iran’s nuclear programme, sanctions relief, and humanitarian access.

With regards to the impacts in the UK, and as previously shared, Logistics UK welcomed the government’s announcement of 20 May to delay the planned fuel duty increase from September to the end of the year, to provide a 12-month road tax holiday for HGVs, and to reduce the red diesel duty rate for rail freight. We also welcomed the Chancellor’s statement that government stands ready to act if market conditions worsen later this year.

Following those announcements, the government launched a consultation on 27 May regarding additional tariff suspensions of agricultural goods, fertilisers, and kerosene to help mitigate the consumer impact of the conflict in the Middle East, with a closing date of the 24 June.

To inform our engagement with government and others, we have been gathering insight from the sector on the impacts of the conflict. The results of our Logistics Performance Tracker, where we surveyed 129 logistics businesses between 8 April – 22 May can be found here.

Also this week

Government

• Following the Chancellor’s announcement of a 12‑month HGV Vehicle Excise Duty (VED) holiday, HM Treasury has provided further clarification. The reduced rate is expected to apply to vehicles due for renewal on or after 1 July 2026 and will be based on vehicle classification. The HGV Levy will continue to operate as normal.
• Former Health Secretary Alan Milburn published his interim review on young people and work on 28 May, warning that up to one in six young people could be out of education, employment or training (NEET) within five years without urgent intervention, with numbers potentially reaching 1.25 million by 2031. Milburn highlighted fewer opportunities in the entry-level job market and is expected to call for a reset of the welfare system, arguing it is contributing to economic inactivity. Read the Logistics UK press release on the announcement here.
• The government published its Energy Sector Cyber Security Strategy (2026–2030) on 28 May, setting out a joint roadmap with Ofgem, NCSC and NESO to strengthen cyber resilience across the energy system, including improved risk management, enhanced incident response, and updated security requirements as the system becomes more digitalised in the transition to Clean Power 2030.
• The government refused to provide additional financial support to TransPennine Express to cover rising fuel costs linked to the Middle East conflict, the Telegraph reported on 28 May. The nationalised operator sought a taxpayer-funded bailout after its diesel bill was projected to exceed expectations by £10-15 million, but ministers said it must absorb the costs within existing budgets. Similar pressures could affect Northern Rail.

Parliament

• The Business and Trade Committee urged ministers to accelerate the Zero Emission Vehicle (ZEV) Mandate review on 20 May, warning that outdated sales thresholds combined with risk of new EU trade barriers pose a potential existential risk to the UK automotive sector. The committee suggests aligning the policy with domestic vehicle production targets and asked for clarity on securing the UK automotive sector’s inclusion in the Industrial Accelerator Act.

Devolved, regional and local

• The Scottish government is progressing plans to reform the use of Apprenticeship Levy funding with a new Apprenticeship Accelerator Grant, and a wider national skills plan aimed at boosting workforce development. The measures come amid broader policy focus on addressing skills shortages, with around 14% of employers in Scotland reporting workforce skills gaps and demand for labour expected to increase significantly over the coming decade, Holyrood reported on 26 May.

Other

• Westminster City Council raised concerns over Waymo’s driverless taxi trials including potential serious collision risks, unpredictable behaviour and whether the local council would be liable in the event of a collision, the Telegraph reported on 25 May.

Coming up

• Logistics UK is hosting its Annual Conference and Sir James Whitehead Address on Wednesday 3 June, bringing together industry experts, government, and policymakers for wide-ranging discussions on issues impacting the logistics sector. We will also launch our 2026 Logistics Report including the latest data on the size of the sector in terms of GVA and employment.
• Parliament returns from recess on Monday 1 June.
• Regulatory flexibilities for zero emission vehicles up to 4.25 tonnes will come into force on Monday 1 June. Under these changes, affected vehicles will no longer be required to have a tachograph installed and drivers will operate under GB Domestic Hours rather than assimilated EU rules. Vehicles will also move into Class 7 MOT testing.
• Lisa Smart MP (Lib Dem, Hazel Grove) has secured a debate on the role of rail freight in the transport network on Wednesday 3 June. Logistics UK has shared a briefing with her ahead of the debate.
• Transport Minister Lord Hendy is leading the second reading of the Civil Aviation Bill on Tuesday 2 June.
• There are Energy Security and Net Zero Oral Questions on Tuesday 2 June.
• The remaining stages of the Railways Bill will be agreed on Wednesday 3 June, before it goes to the House of Lords.

The Transport Committee will hold a session on Road Safety Strategy on Wednesday 3 June.