The UK government has unveiled a £625 million workforce and infrastructure package alongside wider capital spending and digital transformation commitments to support national supply chains, construction and logistics in the 2025 Spring Statement.
While the measures were broadly welcomed by the industry, sector leaders warned of missed opportunities to provide long-term tax clarity, decarbonisation incentives and targeted support for small businesses.
Chancellor Rachel Reeves said the package would help “match the scale of [the UK government’s] ambitions”, with funding designed to tackle labour shortages, modernise transport networks and catalyse public sector digital transformation.
A £13 billion increase in capital spending was reaffirmed, with £4.8bn earmarked for the Strategic Road Network in 2025-26, including £1.3bn for road renewals and £1.6bn for local road maintenance.
Complementing this, the £625m skills package aims to deliver 60,000 additional skilled workers by 2030 through 35,000 construction bootcamp places, 10,000 foundation apprenticeships, and 10 new Technical Excellence Colleges.
A further £80m will help employers create bespoke training programmes, and a £100m expansion of the CITB’s placement scheme is expected to support 40,000 annual placements.
Reeves also confirmed the forthcoming launch of a 10-year Infrastructure Strategy at the Spending Review in June, which will set multi-year funding envelopes through to 2030. Analysts expect dedicated freight corridors, green logistics zones, and support for digitally connected warehousing to feature prominently.
In parallel, the Treasury announced a £3.25bn Transformation Fund to accelerate digital modernisation in public services. Initial allocations include £42m for Frontier AI Exemplars, with the goal of making one in 10 civil servants a digital professional by 2030. At HMRC, automation tools such as AI-powered customer service and automated debt recovery are already in development.
Georgia Gibson-Smith, tax disputes and disclosures manager at Menzies, said the digital and tech sector “remains a key area for growth” and welcomed the broad strategic vision, but called for firmer timelines.
“We hope the chancellor will offer positive updates and no cuts to spending in this area,” she said, adding that further clarity was needed on the delayed Making Tax Digital for Income Tax Self Assessment, due to begin phased rollout in 2026.
“For those in the business of accounts software, there should be a boom when MTD for ITSA eventually takes off.”
However, several industry groups warned that fiscal and regulatory uncertainties risk stalling progress on fleet modernisation and automation.
David Bushnell, director of consultancy and strategy at Fleet Operations, said the Spring Statement “was another missed opportunity to provide the leadership and clarity the fleet sector urgently needs”.
He criticised the withdrawal of the electric van VED exemption from April 2025 and the continued classification of 4.25-tonne electric vans as HGVs. “These vehicles are performing the same tasks as their 3.5-tonne diesel counterparts – the extra weight is in the battery, not the payload,” he said.
Bushnell also called for public charging VAT alignment and reforms to the Expensive Car Supplement, warning that current policies “undermine the appeal of second-hand electric vehicles and stall wider adoption.”
Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), echoed these concerns: “There were missed opportunities to use the automotive sector to stimulate growth. Raising employer NICs to 15% will significantly increase the cost of running a franchised dealership, especially as businesses are also facing the cost pressures of electrification.”
From a local government perspective, Ann Carruthers, president of ADEPT, said the focus on national infrastructure was welcome, but warned that “place-based services – from roads to waste collection, housing and green spaces – are being pushed to breaking point.” She added: “Without adequate resources, local authorities are simply unable to deliver the critical services that underpin the logistics sector.”
Looking ahead, the logistics and supply chain sector will be watching the June Spending Review closely. The anticipated release of a full 10-year Infrastructure Strategy, updates to the Industrial Strategy, and confirmation of digital and decarbonisation incentives are expected to shape the next phase of policy support.
But for now, while the Spring Statement sets the stage for investment and reform, the industry remains vocal in its calls for greater precision, fairness and follow-through.
