Raising Warehouse Taxes Could Leave Industrial Parks Deserted, says logistics CEO.

Wayne Chapman, UK CEO of 3PL Paxon, raises concerns that UK PM Andy Burnham’s plans to fund 20% cuts in business rates for pubs and clubs by hiking warehouse taxes could see international businesses downgrading the UK. 

He said: “While everyone wants to see Britain’s hospitality sector thrive, one sector shouldn’t be supported at the expense of another. A cut in business rates might help keep pubs and clubs open, but funding this through higher taxes on large warehouses risks closing down industrial parks, which would be a deeply damaging own goal for the wider economy.

“Large warehouses and fulfilment centres are critical pieces of national infrastructure that support retailers, manufacturers, exporters and consumers. They are already creaking under high input costs, market volatility and geopolitical unrest. Every additional cost pressure imposed on retailers and logistics operators ultimately rips through supply chains and makes the UK a less competitive place to do business.

“The stark reality is that Britain already faces strong competition from logistics hubs across Europe. Many international businesses assess investment opportunities across multiple markets and hiking UK warehouse rates will make it increasingly difficult to make a compelling case for operating and building warehouses here. Why would international boards and investment committees overlook other European countries offering business rates relief, tax incentives and investment grants when thinking about where to invest in logistics hubs? They won’t, and there’s a worrying possibility they downgrade UK investment and operations.

“Hiking warehouse rates risks could leave industrial parks deserted. We should be looking for policies that encourage investment across the economy, rather than boosting one sector and penalising another. In an increasingly competitive global market, the UK cannot afford to make itself less attractive for the retailers and logistics businesses that keep goods moving around the world. Efforts should be made to drive investment in retail supply chains to benefit employment, local communities, consumers and economic growth.”