Public Affairs monitoring for week ending 7 August 2026

Chancellor confirms Budget to be held on 28 October and says cuts will be needed to pay for new priorities

Chancellor John Healey announced on 31 July that he will deliver the Autumn Budget on 28 October. In a letter to the Treasury Select Committee, Healey said the Budget would focus on moving “power and money out of Westminster,” maintaining the government’s fiscal rules and providing resilience against economic uncertainty, including the impact of ongoing instability in the Middle East.

In a letter to his Cabinet colleagues, the Chancellor said that they must make cuts in their budgets to pay for the Prime Minister’s spending pledges on technical education, devolving power and helping people with the cost of living. When interviewed on defence spending, the Chancellor said that “at the [2027] spending review, we will set out a clear path to meeting our 3.5 per cent Nato commitment in 2035 and we will set a target date on that path for 3 per cent.”

HM Treasury has opened its stakeholder representations portal, inviting businesses, organisations and individuals to submit policy proposals and evidence for consideration ahead of the Budget by 9 September. Logistics UK has begun preparing its Autumn Budget representation and members will have the opportunity to review it in early September, including through a Teams discussion on Thursday 3 September, 10:30-11:30. Members wishing to see the draft representation and join the call should email Public Affairs.

Latest Logistics UK Middle East impacts survey finds widespread cost pressures remain

Our latest Middle East Member Survey results show that widespread cost pressures remain. More than 70% of logistics businesses reported higher fuel costs in July than in June, while over half experienced increases in the cost of other inputs such as pallets, strapping and packaging materials. SMEs continue to be particularly exposed, with rising costs creating cashflow pressures and affecting investment decisions. Members have also reported increasing instances of fuel theft, adding further operational and financial challenges.

Logistics UK shared the results with key stakeholders across government, including in Number 10, HM Treasury, Department for Business, Innovation, Science and Trade, Department for Transport, Department for Energy Security and Net Zero and devolved governments.

Gatwick to open second runway as government wins legal challenge

The government announced on 4 August that Gatwick Airport’s second runway can now be fully utilised after the Court of Appeal dismissed a legal challenge against the project and refused permission for a further appeal. The decision allows the airport’s Northern Runway to be operational from 2030. The Department for Transport said the expansion is expected to facilitate up to 100,000 additional flights per year and increase the airport’s annual passenger capacity by around 13 million.

New Northern Ireland regulations to increase the Category B weight limit for zero emission vehicles

The Northern Ireland Department for Infrastructure is introducing new regulations on 1 August, increasing the Category B licence weight limit for zero-emission goods vehicles (ZEGVs). Under the changes, drivers holding a standard Category B car licence will be permitted to operate zero-emission goods vehicles up to 4.25 tonnes, reflecting the additional weight associated with battery and other zero-emission technologies. To access the entitlement, drivers must have held their licence for at least two years.

Also this week

Government

• Prime Minister Andy Burnham announced reforms to public procurement on 5 August that would emphasise job creation and skills development when awarding government contracts. Under the proposals, the weighting given to wider social value considerations in contracts worth more than £5 million would increase from 10% to 20%, with a new focus on creating local employment opportunities, supporting young people into work and addressing regional skills shortages.
• The Department for Transport (DfT) published research on 30 July exploring GB road transport operators’ expectations of the EU Entry/Exit System (EES). The study found many operators expect increased disruption from EES and the Schengen 90/180-day rule, particularly because of compliance obligations and driver day-count monitoring requirements. Logistics UK continues to call for professional drivers to be exempt from the 90/180-day limit.

Devolved, regional and local

• Labour has retained control of the Greater Manchester Combined Authority on 1 August, with Manchester City Council leader Bev Craig securing 66.3% of the votes, after second preferences were counted.

Coming up

• Parliament has risen for Summer Recess and will return on Tuesday 1 September.