Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

UK warned visa plan to fix truck driver shortage will not solve crunch

Published 09/25/2021, 06:07 PM
Updated 09/26/2021, 05:55 AM
© Reuters. FILE PHOTO: Lorries are seen at an HGV parking, at Cobham services on the M25 motorway, Cobham, Britain, August 31, 2021.  REUTERS/Peter Cziborra/File Photo

By Michael Holden

LONDON (Reuters) - Britain’s decision to issue temporary visas for 5,000 foreign truck drivers is a short-term fix that will not solve an acute labour shortage that risks major disruption for retailers in the run-up to Christmas, business leaders have warned.

Long lines of vehicles formed at petrol stations for a second day on Saturday as motorists waited in line, some for hours, to fill up with fuel after oil firms reported a lack of drivers was causing transport problems from refineries to forecourts, leading some operators to ration supplies and others to close gas stations.

The fuel supply issues come on the back of warnings from the retail industry that unless the driver shortage was sorted out there would be major problems ahead of the busy festive shopping period.

"After a very difficult 18 months, I know how important this Christmas is for all of us and that's why we're taking these steps at the earliest opportunity to ensure preparations remain on track," transport minister Grant Shapps said in a statement.

The UK's Road Haulage Association (RHA) says Britain is facing a shortage of some 100,000 drivers, a result of workers leaving the industry, Brexit and the pandemic, which put a stop to driver training and testing for about a year.

Under the government's plans, 5,000 heavy goods vehicle (HGV) drivers would be able to come to Britain under temporary visas, while another 5,500 visas would be issued to poultry workers "to avoid any potential further pressures on the food industry".

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

These short-term visas, which the government had previously rejected introducing despite calls from retail and logistics companies, will expire on Dec. 24.

Additionally, up to 4,000 people will be trained as new truck drivers, letters will be sent out to nearly a million drivers with HGV licences to entice them back to the industry, and ministry of defence examiners will be drafted in to speed up the testing process.

The government said the visas were not a long-term solution and the long-term solution was to hire more British drivers with better pay and conditions.

"We are acting now but the industries must also play their part with working conditions continuing to improve and the deserved salary increases continuing to be maintained in order for companies to retain new drivers," Shapps said.

Andrew Opie, director of food and sustainability at the British Retail Consortium, who warned on Friday the government had just 10 days to solve the driver shortage issue, said the plans were insufficient.

"The limit of 5,000 visas will do little to alleviate the current shortfall," he said. "Supermarkets alone have estimated they need at least 15,000 HGV drivers for their businesses to be able to operate at full capacity ahead of Christmas and avoid disruption or availability issues."

Others have cautioned European drivers may not want to work in Britain again anyway.

"I expect many drivers will not return to the UK even if the UK government allows them to," said Marco Digioia, general secretary of the European Road Haulers Association, told the i newspaper.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Robo Trucks are coming soon.
Pay drivers more, new workers will enter the market, beats working in tescos
I still remember that new year picture when they were celebrating Brexit, they were angry that foreigners are taking their jobs, now they can't find workers, mainly because some Brits are lazy. They got what they asked for and more to come, I hope maybe then they will see how stupid they were.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.