With the Budget now just a week away (30th October), A&S Recruitment’s Amanda Harrold reflects on how announcements made by Chancellor of the Exchequer Rachel Reeves could impact the logistics market and those looking to recruit.
Amanda says: “The upcoming UK budget is expected to have significant implications for the logistics recruitment market, an industry that has experienced both its share of considerable growth and challenges in recent years.
“As logistics plays a pivotal role in the UK’s economy—facilitating trade, e-commerce, and supply chain operations—the sector’s workforce requirements are substantial. However, factors such as post-Brexit changes, inflation, and rising operational costs have already impacted recruitment in logistics. The budget could potentially introduce policies that either alleviate or exacerbate these issues, influencing hiring practices and the overall demand for workers in the sector.
“A key area the Budget could directly impact is taxation and government support schemes. If the government introduces tax incentives or subsidies for logistics companies, particularly smaller enterprises, it could ease financial pressure and enable them to invest more in recruitment. Conversely, companies may have to tighten their budgets if the Chancellor announces increased corporate taxes or reduces spending on transportation infrastructure. This could result in hiring freezes or cutbacks, making it even harder for the logistics industry to meet the rising demand for skilled drivers, warehouse operatives, and supply chain managers.
“Another crucial factor is wage growth and inflation. Ours has been facing labour shortages, particularly regarding HGV drivers, and this situation has led to wage inflation as companies compete for a shrinking pool of candidates. If the Budget includes measures to tackle inflation or increase the minimum wage, it could further drive up costs for logistics companies, putting pressure on recruitment strategies. Higher wage bills may force companies to be more selective in hiring or lead some to consider investment in automation as an alternative to expanding their workforce.
“Finally, investment in training and skills development is essential in shaping the future of logistics recruitment. The UK government may use the Budget to introduce or expand apprenticeship schemes, vocational training, and re-skilling programmes, bringing positive benefits. This would help address the skills gap, particularly in areas such as digital logistics, supply chain analytics, and green logistics. A budget prioritising upskilling and education could foster a more sustainable pipeline of talent, reducing the industry’s dependency on costly recruitment efforts while ensuring a workforce equipped to handle future challenges.”
Originally posted on Porttalk (https://porttalk.co.uk/amanda-harrolds-budget-reflections-anticipating-the-impact-on-logistics-recruitment/)