Retail slump and low confidence: Why 2026 must be the year of Government support for logistics

Various reports this week have shown that retailers experienced falling sales throughout December, with consumer confidence weak through the crucial Christmas trading period. The rising cost of living has meant that many households were being more cautious with their pre-Christmas spending.

The latest CBI (Confederation of British Industry) data indicates that this downturn is expected to continue over the next three months, with sales expectations now at the lowest point in over four years.

This mirrors what we're seeing across the wider economy. Business confidence remains fragile, with insolvencies remaining high. For road freight and logistics operators, the past year was one of difficult choices: Delaying investment, consolidating operations, and focusing on survival rather than growth. The coming months will reveal the full impact of November's budget measures on HGV, Coach and Van businesses across our space who've been operating on razor-thin margins. To date, rising costs have diverted resources away from key investments in people and training.

To support sectors such as retail and manufacturing, our industry needs 60,000 new drivers annually over the next five years. That will mean government backing for flexible training solutions like heavy vehicle driver bootcamps. We need to see action on business rates, energy costs, and balanced employment legislation too. Piling on more regulation and adding further tax burdens isn't a recipe for growth. Ultimately, it leads to companies closing their doors rather than opening new ones.

In the next twelve months, government must take the opportunity to side with sectors like ours who are crucial to a healthy economy. We want decision-makers to work alongside us to give businesses the clarity and certainty needed to kick-start investment. That's the road to growth.