On 29th January 2025, Chancellor Rachel Reeves outlined the government’s strategy to stimulate economic growth through significant investments in transport and infrastructure. A central component of this plan is the development of a “growth corridor” between Oxford and Cambridge, envisioned as “Europe’s Silicon Valley.” This initiative aims to boost the UK economy by £78 billion over the next decade and includes infrastructure improvements such as a new rail link between the two cities.

Additionally, the Chancellor expressed support for expanding airport capacity in Greater London, including the construction of a third runway at Heathrow Airport. She argued that such expansions are essential for economic growth and could improve air quality by reducing aircraft holding patterns over London, citing advancements in sustainable aviation technology.

Reeves also endorsed Manchester United’s proposal for a new 100,000-seat stadium at Old Trafford. The project is expected to generate £7 billion annually and includes associated residential, transport, and entertainment developments, contributing to urban renewal and economic stimulation in the area.

These initiatives reflect the government’s commitment to revitalising the UK’s economy through substantial infrastructure projects, despite potential environmental concerns and regional disparities. Reeves emphasised that prioritising economic growth is essential for the nation’s future prosperity.

The government’s support for nationally significant infrastructure projects, including Heathrow’s third runway and the Lower Thames Crossing, is the type of government action industry has been urging for a long time, according to Logistics UK, one of the biggest business groups in the UK. Speaking in Oxford after the Chancellor’s speech, David Wells OBE, Logistics UK’s Chief Executive, explained how vital it is that these projects are now progressed at pace to ensure that the country’s economy gets the boost it needs:

“Today’s announcement represents an intention which will be welcomed by our member businesses, but the proof of the pudding will be in the speed at which planning decisions are taken and projects delivered, which will be critical to the success of the Chancellor’s plan.

“If nationally important projects like the Lower Thames Crossing and third runway at Heathrow become a reality, we can deliver goods more efficiently across the country, benefitting everyone nationwide. The Lower Thames Crossing is vital for connecting businesses across the whole of the UK with Europe and must be delivered to address the country’s overreliance on the congested Dartford Crossing. Heathrow is the UK’s biggest port by value, and a critical hub which provides access to the rest of the UK and the world for British business – the opening of a third runway will expand the reach of industry to new global markets both for imports and exports.”

Wells continues: “Logistics is fundamental to our economy, our way of life, and growth. It supplies our hospitals, schools, factories and shops with everything they need, everywhere, every day. Nothing moves without logistics. So efficient logistics is critical to growth and therefore needs to be at the centre of the government’s Industrial Strategy.

“But logistics in the UK is getting less efficient. The World Bank Logistics Productivity Index shows that the UK has slipped from 4^th in the world to 19^th in the last 10 years – primarily because of congestion and delays, friction at our borders, and a lack of infrastructure investment.

“If we make the right investments, to get back to 4^th in the World Bank index, Oxford Economics suggests that would turbocharge growth across the whole economy. It is critical that logistics has a place on the government’s Industrial Strategy Council to ensure our industry can provide the engine for future economic growth. Our sector stands ready to drive the economy to the next level, providing the infrastructure exists to enable us to do so.”

RHA MD Richard Smith said: “I’m delighted to welcome today’s announcement by Chancellor Rachel Reeves regarding the Lower Thames Crossing – a critical infrastructure project that has been a long-standing priority for the RHA. This is a major victory for our sector and this nationally significant scheme has the potential to turbocharge the economy.

“The project will provide much-needed reliability for businesses. The delays at Dartford decrease productivity and increase costs for businesses, particularly those reliant on freight. The LTC will allow goods to flow more freely, improving journey times. This will boost the region, but it’s more than a local project: This is a nationally significant scheme.

“After many years of delays in giving LTC the green light, today’s announcement will be a welcome relief to operators of lorries, coaches, and vans who must navigate the daily knock-on economic impact of persistent delays.

“The Lower Thames Crossing offers value for money and will bring wider economic benefits nationally. It’s a big step forward in helping to drive forward the long-term economic growth the Government has pledged.”

Dominic Phinn, Head of Transport at Climate Group, said: “The Government’s pulling in the right direction. New incentives for private buyers and more accessible charging points are exactly what’s needed. But to keep the UK’s EV transition on track, Labour needs to go truly further, faster – and initiate a bold national mission around EV infrastructure. That means bringing together the energy, charging, automotive, and public sector to advance the UK’s charging and grid infrastructure with much greater urgency and ambition. There’s a huge opportunity here for a new deal that works for industrial growth, consumers – and the climate.”