The BPF is urging the government to form a cross-departmental freight planning forum, as it doubles down on industry calls to recognise logistics property as critical national infrastructure.
In its logistics manifesto, which was unveiled at UKREiiF in Leeds yesterday (21 May), the BPF’s industrial committee and logistics property board said a new forum would elevate the status of logistics within Whitehall, and ensure the need for warehousing is closely aligned with the delivery and upgrade of transport infrastructure.
The manifesto also called for a fresh strategic planning approach, in which decisions are made at the appropriate national or regional level, rather than by local authorities alone.
The BPF additionally urged more flexibility within the Local Plan systems, so that real-time market data can be used to forecast future demand and determine how land is allocated. It said that since local plans take on average seven years to adopt, the existing system means local policy cannot keep pace with changes in the economy that increase the need for logistics space, such as the growth of ecommerce.
Critical national infrastructure
The manifesto calls for the government to treat logistics as national infrastructure. It sets out the economic contribution made by the sector, including £232bn per year in GVA and 2.7m direct jobs, and calls for changes to the planning system to provide more support for logistics development and upgrades to the national grid so warehousing roof space can be fully utilised for renewable power generation.
The manifesto also underlined the role that the logistics sector has to play in the transition to a greener economy and the UK meeting its net-zero 2050 target.
Some 15GW of power can be generated by warehouse roofspace, according to the organisation, meeting a quarter of the UK’s total power requirements.
To harness logistics space for renewable power generation, the BPF is calling on the government to invest in faster grid connectivity, introduce higher “feed-in” tariffs to incentivise property owners to invest in solar power infrastructure, and provide grant funding for innovation in battery and other local energy storage solutions for logistics parks.
The BPF’s industrial committee and logistics property board comprises senior executives from companies across the supply chain including SEGRO, Amazon, DHL, Newlands, Prologis, Wincanton and Savills.
It is the second of five sector-specific documents the BPF is publishing ahead of the election to complement the BPF’s manifesto “Building our Future”, published in January.
Unlocking investment
Figures from Savills showed availability is consistently below an 8% “equilibrium” level – at which supply and demand are broadly in balance – meaning businesses may not be able to access the space they need.
David Sleath, chief executive at SEGRO and chair of the BPF logistics property board, said: “Logistics space is critical national infrastructure, enabling the efficient movement of goods across the country and supporting millions of jobs, but we are only scratching the surface in realising its full potential.
“After years of demand outstripping supply, we can unlock significant investment and drive growth across the UK by taking a more strategic approach to planning and ensuring rapid changes in the economy are feeding through into how we allocate land.
“Furthermore, our analysis shows that warehouse buildings could hold the key to meeting the UK’s renewable energy requirements if the national grid is upgraded and government carefully plans how to incentivise investment into solar power infrastructure and drive innovation in energy storage.
“We look forward to working with policymakers to bring forward the changes needed to maximise the contribution of the sector to the national economy.”
We need a change in mindset whereby logistics is prioritised in Whitehall and treated as critical infrastructure
Benjamin Taylor, planning director at Newlands and BPF logistics property board member, added: “There has been a shortage of logistics space for at least a decade. The combination of rapid growth in the digital economy, limited land availability and an outdated planning system have created a distorted market in which businesses cannot always access the space they need in the right locations. This in turn impacts jobs and the efficiency of supply chains, as well as increasing vehicular miles.
“We need a change in mindset whereby logistics is prioritised in Whitehall and treated as critical infrastructure if we want the UK to be a higher-growth and lower-carbon economy.”
Bruce Topley, UK managing director of GLP, said the manifesto is a “much-needed blueprint for the future advancement of our sector”.
Topley said: “The sector is expected to grow by 50% in the next five years but this will be challenging unless some fundamental changes are made in the way that we plan and connect our facilities. Given the significance of the sector and the barriers it faces, we believe that major reform of the planning regime and the appointment of a logistics and supply chains minister would be a great step in the right direction.
“A coordinated approach with ministerial backing could boost the economy as well as have a significant positive knock-on impact on other key areas such as energy security by accelerating and enhancing grid connectivity of large solar sites on the [roofs] of warehouses and exporting it back to the national grid. We urge the government to take note.”
Call for agile planning system
Gwyn Stubbings, senior planning director of GLP, said: “If the industrial and logistics sector is to play its full part in levelling up the UK, it is vital that we create a more agile planning system that is more responsive to the sector’s current needs.
“Under the current system, strategic ‘larger than local’ logistics employment sites are all too often not being planned for effectively, particularly where it relies on the cooperation of local authorities with different agendas and priorities.
“We agree with the BPF that a new approach to strategic planning is vital to ensure that we take decisions at the right level which plan for jobs, investment and critical industrial infrastructure in a coordinated national way.”
Image © Pixabay/Pexels
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