The UK’s logistics sector has emerged as “a critical, stabilising economic force”, according to Logistics UK in its annual report

In the organisation's annual Logistics Report 2026, published on 3 June 2026, Logistics UK is confident that the logistics sector remains one of the largest economic sectors in the UK and one of its largest employers. 

The report finds that in 2024 the sector contributed £175 billion in gross value added (GVA) to the UK economy, which is an increase of 3.1% from 2023, and employed 8% (2.6 million people) of the UK workforce. 

Challenges to the sector identified by the report include shifting global tariffs, increasing energy prices, and cost of living concerns from 2025, as well as the effects of the conflict in the Middle East that began in February 2026. The report recognises that the industry is highly vulnerable to the increase in fuel prices brought by the Middle East conflict. Almost six out of ten of the respondents to Logistics UK's industry survey said that cutting fuel duty was the most important action the government could take to help the sector. 

The report highlights some good news on that front: the government announced on 20 May 2026 that it is delaying the planned fuel duty increase from September 2026 to the end of the year, alongside introducing a 12-month road tax holiday and a reduced red diesel duty rate for rail freight. A recent article by BBC News explains this announcement in further detail. Logistics UK is continuing to push for a wider package of support for the industry on low carbon fuels, electricity costs and business rates.

It is reported that 2025 was the highest internet spending year on record, with UK internet sales totalling £30.5bn for the year. Effective logistics is recognised as one of the core drivers of e-commerce, so this is a good indicator of the demand for logistics.

The report concludes that despite rising fuel, employment and other costs that are likely to have a “dampening effect” on the logistics sector's aspirations for growth in 2026, the sector is accustomed to operating within a low-margin environment and has “proved itself to be highly adaptable and resilient in the face of unexpected shocks”. 

The Logistics Report 2026 has been produced using official statistics, insight from industry experts, and responses to an industry survey of logistics businesses carried out by Logistics UK. A summary of the Logistics Report 2026 can be found here.

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