‘10 days to save Christmas’: Ministers to meet on easing rules as retail industry warns of significant disruption
A queue forms for an Esso petrol station on September 24, 2021 in London, United Kingdom. BP and Esso have announced that its ability to transport fuel from refineries to its branded petrol station forecourts is being impacted by the ongoing shortage of HGV drivers and as a result, it will be rationing deliveries to ensure continuity of supply. (Photo by Dan Kitwood/Getty Images)
Retail industry has sent a dire warning to the government on Friday saying significant disruption is inevitable in the run-up to Christmas unless it moves to alleviate an acute shortage of truckers in the next 10 days.
A spike in European natural gas prices and a post-Brexit shortage of truck drivers have left Britain grappling with soaring energy prices and a potential food supply crunch.
BP had to close some of its gas stations due to the driver shortages while queues formed at some Shell stations as pumps ran dry in some places. ExxonMobil's Esso said a small number of its 200 Tesco Alliance retail sites had also been impacted in some way.
In a rush to fill up, drivers also queued at some gas stations in London and the southern English county of Kent. At Hildenborough in southeast England, a BP petrol station was closed entirely and its pumps wrapped in plastic.
"Sorry we're out of fuel. We are working hard to fix this," signs read.
At least 50 of BP's 1,200 service stations were out of at least one type of fuel, The Times reported, while BP told AFP a "handful of sites" had temporarily closed.
'Supply Pressure'
Industry insiders said the lack of fuel deliveries was confined to southeastern England and appeared to be temporary, but was part of a wider problem.
BP blamed "industry-wide driver shortages across the UK".
Gordon Balmer, of the Petrol Retailers Association, cited "supply pressure from a lack of trained HGV (heavy goods vehicle) drivers," despite demand at 92 percent of pre-pandemic levels.
For months supermarkets, processors and farmers have warned that a shortage of HGV drivers was straining supply chains to breaking point - making it harder to get goods on to shelves.
"Unless new drivers are found in the next 10 days, it is inevitable that we will see significant disruption in the run-up to Christmas," said Andrew Opie, director of food & sustainability at the British Retail Consortium, the retail industry's lobby group.
"HGV drivers are the glue which holds our supply chains together," Opie said. "Without them, we are unable to move goods from farms to warehouses to shops."
The next 10 days are crucial because retailers ramp up supplies in October to ensure there are enough goods for the peak Christmas season.
Hauliers and logistics companies cautioned that there were no quick fixes and that any change to testing or visas would likely be too late to alleviate the pre-Christmas shortages as retailers stockpile months ahead.
Prime Minister Boris Johnson's government has insisted that there will be no return to the 1970s when Britain was cast by allies as the "sick man of Europe" with three-day weeks, energy shortages and rampant inflation.
It was also reminiscent of late 2000, when people protesting over high fuel prices blockaded oil refineries, bringing the country to a virtual standstill for weeks.
'Don't Panic'
As ministers urged the public not to panic buy, some of Britain's biggest supermarkets have warned that the shortage of truck drivers could lead to just that ahead of Christmas.
Brazilian President Jair Bolsonaro said that Johnson, whom he met in New York, had asked him for an "emergency" agreement to supply a food product that is lacking in Britain, though the British embassy disputed Bolsonaro's account.
Transport Secretary Grant Shapps said there was a global shortage of truckers after Covid halted lorry driver testing so Britain was doubling the number of tests. Asked if the government would ease visa rules, he said the government would look at all options.
"We'll do whatever it takes," Shapps told Sky News. "We'll move heaven and earth to do whatever we can to make sure that shortages are alleviated with HGV drivers.
"We should see it smooth out fairly quickly," he said.
Ministers are due to meet later on Friday in an attempt to hash out a fix.
Experts and business leaders say Brexit and the pandemic have cut the number of truck drivers working in Britain, hitting supply chains in sectors from food to building supplies.
Many drivers who have left Britain were from eastern Europe, and returned home due to the global health crisis or to avoid falling foul of tougher immigration rules.
A similar situation has affected seasonal fruit pickers, despite a government visa waiver scheme.
Trucker Visa?
The trucking industry body, the Road Haulage Association (RHA), has called on the government to allow short-term visas for international drivers to enter Britain and fill the gap, while British drivers are being trained for the future.
"It's an enormous challenge," Rod McKenzie, head of policy at the RHA, said. In the short-term, he said, international drivers could help, even if it may be too late to help Christmas, and in the longer term the industry needed better pay and conditions to attract workers.
"It's a tough job. We the British do not help truckers in the way that Europeans and Americans do by giving them decent facilities," he said.
The British haulage industry says it needs around 100,000 more drivers after 25,000 returned to Europe before Brexit and the pandemic halted the qualification process for new workers.
Don't Blame Brexit
"Since Brexit has happened there's been a shortage of labour across all industries," said Shane Kenneally, 38, who runs a landscaping business, as he pulled into a west London filling station only to find there was no fuel.
"This should have been thought about but this government has always not thought ahead."
Shapps, though, denied Brexit was to blame, calling critics "wrong" and highlighting similar issues affecting EU countries.
His department recently announced an overhaul for HGV driving tests to get more drivers behind the wheel as soon as possible.
Shapps added that Covid-19 exacerbated the problem given that Britain was unable to test 40,000 drivers during lockdowns.
The government has been facing a separate crisis over carbon dioxide stocks vital to the food and drink industry, due to a spike in wholesale gas prices.
But while saying he was "ruling nothing out", Shapps rebuffed industry calls to add truck drivers to a special list of industries suffering labour shortages, to make it easier for EU citizens to obtain work visas.
He said he preferred to "get those people back in" to driving who had been put off the job by lower pay offered when European workers were plentiful.
Britain was also keen to "entice" back European truck drivers who have gained the necessary status to work in the UK but are currently overseas, he added.
The Times reported the government could draft in the army to deliver fuel and that ministers had discussed putting soldiers on standby.
But Shapps said: "Probably that's not the solution in terms of just sheer numbers."
Parliament is to launch an inquiry into delays in compensation settlements for sub postmasters affected by the Horizon scandal.
The newly-formed Business and Trade Select Committee will call ministers, subpostmasters and their lawyers to give evidence next week with a second session to follow in mid-November. The Committee’s chair, Liam Byrne MP told ITV News that there was “definitely a delay” in people coming forward for payment.
“What we’re hearing from subpostmasters is that if there is an argument about how much should be paid out, the first offer is made quite quickly but if there’s a negotiation, that negotiation is dragging.
“We on the committee are going to batter away at this, week in, week out, until it is job done. All of us on our committee are frankly horrified and outraged by how long this has taken and we’re just not going to give up, ” he said.
Sir Alan Bates, the Post Office campaigner and chair of the Justice for Subpostmasters Alliance, is expected to be invited to give evidence. Earlier this month, Sir Alan states that his own claim had not been addressed and that he had written to prime minister Sir Keir Starmer asking for his intervention.
“Like many of the groups, my claim has not been completed. It’s ridiculous. I am one of just many in this position. This is why I wrote to the Prime Minister at the start of October, asking that he instruct the department to ensure that all claims – and I’m talking about in the GLO group, the original 555 – have been completed by March next year," he said.
This comes weeks after the Post Office's outgoing CEO agreed the government is using the company as a "shield" over compensation schemes. Nick Read, who resigned last month, was giving evidence at the Post Office Horizon IT Inquiry for the second day, with a focus on delays to victims' financial redress.
He also admitted that the compensation process has been "overly bureaucratic" and expressed "deep regret" that the Post Office had not lived up to delivering "speedy and fair redress".
Convenience store body Association of Convenience Stores (ACS) today (30) has warned the Chancellor about the negative effects of the new National Living Wage (NLW) increase, a day after the Chancellor announced a pay rise for over 3 million workers next year, with NLW rates rising by 6.7 perc cent.
From April 2025, the NLW will increase from £11.44 to £12.21 while 18-20 National Minimum Wage will rise by £1.40 per hour to £10 - the largest increase on record, marking the first step towards a single adult rate.
ACS chief executive James Lowman said, “Our members are grappling with how to afford this inflation-busting increase in wage costs. The market remains tough, with many retailers reporting flat or declining sales while expenses like banking charges, credit card processing fees and energy bills are eating away at their profitability.
"More than ever, we need help from the Chancellor in the Budget. Without sustained and enhanced help on business rates, a reduction in National Insurance Contributions, and effective incentives to drive investment, our sector faces a challenging future. For some communities, this could mean the viability of their local shop is put at risk.”
Evidence provided to the Low Pay Commission by ACS earlier this year already found that to handle the increases in national wage increases, 53 per cent of retailers have reduced the amount they invest in their business, 53 per cent have been forced to increase their prices in store, and 47 per cent have had to take lower profits.
Baroness Philippa Stroud, Chair of the Low Pay Commission (LPC), stated that data already shows signs of employers finding it harder to adapt to minimum wage increases.
A Rossendale shop has had a licence bid rejected after repeatedly selling vapes to children and having illegal products on its premises.
Management at the Ibra Superstore at 34 Burnley Road, Bacup, have shown ‘no regard’ for children’s protection and safety, and have insufficient controls for licensing, Rossendale councillors have ruled.
Ibrahim Mohammad, director of the Ibra Superstore, had recently applied to Rossendale Council for a new premises licence. But the borough’s licensing sub-committee rejected his bid after a meeting which heard allegations from the police and trading standards officers.
The Burnley Road shop has been subject to various licensing changes and concerns in recent years. In the past, it was called Bacup Wines.
Ibrahim Mohammad, the applicant, attended the Rossendale licensing sub-committe meeting with his father,Amin Mohammad. Also there was PC Mick Jones, of Lancashire Constabulary, and Jason Middleton of Lancashire Trading Standards. Councillor Bob Bauld attended as an observer.
Mr Mohammad wanted a premises license for alcohol sales and opening hours from 8am to 11pm, seven days a week. He already had a personal licence. He said the Bacup shop would install a CCTV system, keep an incident log and a refusals record, check customers’ ages, display information about staff and give them regular training.
Trading standards officer Jason Middleton said Ibra Superstore Ltd was incorporated as a company in April 2023. Since then, trading standards had received 11 complaints about under-age sales and carried out visits.
Breaches included non-compliant vapes being found which broke a 2ml limit on the quantity of nicotine-containing liquid, no age checks and no information on display.
During one visit, Amin Mohammad tried to leave with a bag containing 10 illegal vapes. In test purchases by trading standards, an ‘Elf Bar’ vape was sold to a 14-year-old by Amin Mohammad and an illegal Hayati Pro Max vape to a 13-year-old by Ibrahim Mohammad. The shop claimed a phone call distracted staff during the 13-year-old’s purchase and illegal vapes came from ‘a man in car’.
Councillors heard different speakers, looked at written reports and also some video footage from the applicant. But they rejected the premises licence bid.
Giving their reasons, they stated: “There was a repeated history and pattern of behaviour regarding under-age sales of age-restricted items, such as tobacco products and vapes to children. You must not sell vapes to anyone under the age of 18. This is a criminal offence which the council takes very seriously.
“It is clear you breached the law by failing a test purchase operation in which you sold an illegal vape to an under-age child. The sub-committee feels that you have no regard to the protection and safety of children.
“The sub-committee feels that there is insufficient management control at the premises. There is no credible system to prevent under-age sales of age-restricted products and no measures in place to avoid harm to children and to prevent crime and disorder
“Therefore, given the number of incidents, the circumstances surrounding the incidents and the fact that the matter involves safeguarding issues relating to young, vulnerable minors, we consider that the seriousness of the incidents and the crimes committed against young children undermines the licensing objectives to prevent crime and disorder, and protect children from harm.”
The shop has the right of appeal to a magistrates court within 21 days of the date of the notice.
SPAR North of England retailer Dara Singh Randhawa’s family store has been awarded £100,000 of free stock after hitting all his targets since moving to the symbol.
Dara and his family, who have their SPAR store in Patrington in the East Riding of Yorkshire, joined SPAR through its association with James Hall & Co. Ltd in August 2023 having taken the decision to maximise the store’s potential.
It is a decision they have not looked back on, with sales increasing by up to 25% and margins also showing significant uplift in the last 12 months.
Key to the store’s improved performance is the complete overhaul of products available in-store, particularly the fresh food range, to better support people who live in Patrington and the surrounding area.
A new store layout and refrigeration, better Food To Go and meal deal options, a coffee machine, and a Calippo slush machine were also installed during a major refurbishment prior to launch.
Dara said: “Our move to SPAR has been excellent. We have seen fantastic sales uplift and the support from the team at James Hall & Co. Ltd has been brilliant. The £100,000 of free stock is the cherry on the cake.
“We have been very impressed with the Price Locked promotions, in particular. These give customers confidence to do bigger shops with us as they see value on our shelves and the products at the same prices for longer.
“At times over the summer when tourists and visitors to the area add trade, we have seen sales £6,000 a week higher than our average. This is against a backdrop of the popular caravan park in the village being closed almost all year.
“We are really pleased with the position we are in, and we will be looking to achieve more in 2025.”
Peter Dodding, Sales Director at James Hall & Co. Ltd and Chairman of the SPAR Northern Guild, said: “Congratulations to Dara and the Randhawa family on hitting their targets and earning £100,000 of free stock.
“We recognise switching brand is a big decision for a retailer which is why this isn’t a gimmick, and we offer this to all retailers who join the SPAR family with James Hall & Co. Ltd.
“As well as our £100,000 incentive, we also offer retailers the chance to achieve up to an additional £5,000 of free stock if they successfully refer a friend.
“These opportunities provide additional motivation to retailers alongside the comprehensive benefits that joining the SPAR brand brings with it.”
James Hall & Co. Ltd is a fifth-generation family business which serves a network of independent SPAR retailers and company-owned SPAR stores across Northern England six days a week from its base at Bowland View in Preston.
The government has on Wednesday announced its acceptance of the Low Pay Commission’s (LPC) recommendations on the rates of the National Minimum Wage (NMW), including the National Living Wage (NLW).
The rates which will apply from 1 April 2025 are as follows:
NMW Rate
Increase (£)
Percentage increase
National Living Wage (21 and over)
£12.21
£0.77
6.7
18-20 Year Old Rate
£10.00
£1.40
16.3
16-17 Year Old Rate
£7.55
£1.15
18.0
Apprentice Rate
£7.55
£1.15
18.0
Accommodation Offset
£10.66
£0.67
6.7
The recommended NLW rate is expected to equal two-thirds of median earnings and to have the highest real value in the history of the UK’s minimum wage. The increase in the 18-20 Year Old Rate narrows the gap between that and the NLW, in anticipation of the adult rate being extended to 18 year olds in future years.
“The government have been clear about their ambitions for the National Minimum Wage and its importance in supporting workers’ living standards. At the same time, employers have had to deal with the adult rate rising over 20 per cent in two years, and the challenges that has created alongside other pressures to their cost base,” Baroness Philippa Stroud, chair of the LPC, said.
“It is our job to balance these considerations, ensuring the NLW provides a fair wage for the lowest-paid workers while taking account of economic factors. These rates secure a real-terms pay increase for the lowest-paid workers. Young workers will see substantial increases in their pay floor, making up some of the ground lost against the adult rate over time.”
Stroud admitted that the data show some signs of employers finding it harder to adapt to minimum wage increases.
“The tightening of the labour market since the pandemic has unwound, but the overall picture is similar to 2019. The economy is expected to grow over the next year, although productivity growth remains subdued,” she noted.
Business secretary Jonathan Reynolds said:
Good work and fair wages are in the interest of British business as much as British workers. This government is changing people’s lives for the better because we know that investing in the workforce leads to better productivity, better resilience and ultimately a stronger economy primed for growth.
The recommended increase in the 16-17 Year Old Rate restores that rate to its original value relative to the adult minimum wage. In line with previous recommendations, the Apprentice Rate will remain equal to the 16-17 Year Old Rate.