We’re back with The Brief, your quick read of the latest stories shaping the landscape of supply chain and logistics right now.

Government awards £1.1 million to freight innovation projects

The UK Government has awarded £1.1 million through the Freight Innovation Fund to support new technologies across road, rail and maritime logistics. Successful projects include lightweight trailers, digital port-flow tools, AI-driven efficiency platforms, and staff-wellbeing innovations. The funding is part of a continued push to modernise freight operations, support decarbonisation, and bring more practical innovation into everyday logistics activity.

What this means for you:

Innovation in freight is becoming more accessible, especially for operators who want to test new tools without major upfront cost. Even if you’re not directly involved in these trials, it’s worth keeping an eye on the outcomes. They often shape the technologies that become mainstream in a few years. It’s also a reminder that operational efficiency, decarbonisation, and workforce support are now being approached together, not in isolation.

Autumn Budget 2025: hiring and cost signals

The 2025 Budget confirmed the continued freeze on income tax and National Insurance thresholds until at least 2031, and future changes to salary-sacrifice pension arrangements from 2029. While fuel duty and business rates saw no dramatic shifts, the overall fiscal backdrop remains tight, particularly for sectors facing rising wage, energy and logistics costs. For supply chain employers, the Budget provides early hints of how cost structures may evolve heading into 2026.

What this means for you:

There’s no immediate shock to absorb, but the Budget nudges employers to think about costs more carefully, particularly wages, benefits packages and operational spend. For many businesses, 2026 planning will revolve around balancing competitive pay while keeping costs under control. It’s a good moment to review workforce strategy, cost forecasts, and the role benefits play in attracting and retaining skilled people. Working closely with recruitment specialists who understand your sector can support you in making clearer decisions and a maintaining a steadier talent pipeline.

Manufacturing momentum returns

UK manufacturing has edged back into growth, with the latest S&P Global Manufacturing PMI rising to 50.2, the highest reading in 14 months. Demand is stabilising, supply pressures continue to ease, and confidence is strengthening gradually across several sub-sectors, including automotive and industrial production. While the rebound is still modest, it signals a shift from contraction to recovery across key parts of the supply chain.

What this means for you:

A manufacturing upturn often brings steadier production schedules and more predictable freight, warehousing, and labour needs. This improvement may support more consistent planning across Q1–Q2 2026. For suppliers, it’s a constructive signal: customers may not be accelerating investment yet, but they’re looking for stability, and reliable partners who can help them maintain it.

Labour market: vacancies stabilise

ONS data (Aug–Oct 2025) shows UK vacancies levelling out at around 723,000, ending the long slide seen through 2024–25. Unemployment has risen slightly to 5.0%, while economic inactivity remains high at 21%. Despite the broader stabilisation, demand remains firm in logistics, warehousing, engineering, and tech-leaning operational roles. HGV drivers, warehouse supervisors, maintenance engineers, transport planners, and data-driven operations staff continue to be in shorter supply than many other professions.

What this means for you:

Even with vacancies flattening, the roles that keep supply chains running smoothly haven’t suddenly become easier to fill. Employers are still competing for people with a blend of hands-on operational experience and digital capability. This is a good time to look at workforce planning with a longer lens: where skills are scarce, where capability gaps could slow growth, and how to engage talent that isn’t actively applying. This is where working with specialist recruiters can quietly broaden your access to skilled candidates and help you stay ahead as you move into 2026.

ICS2: full deployment & 2026 cut-off

The EU is pressing ahead with the next phase of its Import Control System 2 (ICS2), with a major messaging cut-over deadline set for 3 February 2026. Operators across road, rail, express, postal and freight forwarding are being urged to align with the new dataset and security-filing requirements ahead of the transition. It’s been emphasised that early preparation will reduce disruption risk as carriers and intermediaries shift to the updated system.

What this means for you:

ICS2 is a reminder that border and security requirements continue to evolve, and they increasingly affect all modes, not just air freight. The 2026 cut-off is close enough that it’s worth checking how your customs partners, carriers and digital systems are preparing. Smooth compliance will help avoid delays, especially for businesses moving goods regularly across UK–EU borders.

Insights for Supply Chain leaders

Across all five stories, a familiar pattern is emerging: steady progress rather than dramatic change. Innovation is being encouraged, manufacturing is stabilising, and labour-market pressures are shifting but not disappearing. For leaders, this is a moment to take stock. To understand where the landscape is settling and to make clear, informed decisions about the upcoming year.

We’ll be back in the new year with The Brief. Until then, feel free to share this with your team or let us know if there’s a topic you’d like us to explore next.

Till next time,

The MVP Recruitment & Talent Solutions Team

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