The Business Secretary met with senior executives from the fuel industry last night following ‘supply chain issues’ at petrol forecourts.
During the meeting, attendees discussed issues caused by supply chain pressures and spikes in localised demand.
As a result, Businesses Secretary Kwasi Kwarteng agreed to implement a measure to temporarily exempt industry from the Competition Act 1998 for the purpose of sharing information and optimising supply.
Known as The Downstream Oil Protocol, this step will allow Government to work constructively with fuel producers, suppliers, hauliers and retailers to ensure that disruption is minimised as far as possible.
The measure will make it easier for industry to share information, so that they can more easily prioritise the delivery of fuel to the parts of the country and strategic locations that are most in need.
Business Secretary Kwasi Kwarteng said: We have long-standing contingency plans in place to work with industry so that fuel supplies can be maintained and deliveries can still be made in the event of a serious disruption.
“While there has always been and continues to be plenty of fuel at refineries and terminals, we are aware that there have been some issues with supply chains. This is why we will enact the Downstream Oil Protocol to ensure industry can share vital information and work together more effectively to ensure disruption is minimised.
“We thank HGV drivers and all forecourt staff for their tireless work during this period.”
The decision follows a package of measures announced over the weekend which will see the Government ease temporary supply chain pressures brought on by the pandemic and the global economy rebounding around the world.
These include an immediate increase in HGV testing, short term visas for HGV drivers and new skills bootcamps to train up to 3,000 more people to become HGV drivers.
In a joint statement, stakeholders* said: “We are in regular contact with Government ministers and policy officials and it was reassuring to meet with the Business Secretary again on Sunday evening and discuss further action.
“We will continue to work closely in partnership over this period with local and national Government and want to reassure the public that the issues that have arisen are due to temporary spikes in customer demand, not a national shortage of fuel.“
Up to 4,000 people will be trained as new HGV drivers to help tackle skills shortages and support more people to launch careers within the logistics sector.
Package of measures includes using MOD examiners to help increase immediate HGV testing capacity by thousands over the next 12 weeks.
Nearly 1 million letters to be sent to all drivers who currently hold an HGV driving licence, encouraging them back into the industry.
5,000 HGV drivers and 5,500 poultry workers added to existing visa scheme until Christmas 2021 to ease supply chain pressures in food and haulage industries during exceptional circumstances this year.
The UK Government is taking belated action to tackle the shortage of HGV drivers. Industry leaders have warned the government of an impending crisis since before Brexit.
Up to 4,000 people will soon be able to take advantage of training courses to become HGV drivers, as part of a package of measures announced yesterday by the government to ease temporary supply chain pressures in food haulage industries, brought on by the pandemic and the global economy rebounding around the world.
The Department for Education is investing up to £10 million to create new skills bootcamps to train up to 3,000 more people to become HGV drivers. The free, short, intensive courses will train drivers to be road ready and gain a category C or category C&E licence, helping to tackle the current HGV driver shortage.
An additional 1,000 people are expected to be trained through courses accessed locally and funded by the government’s adult education budget.
Fuel tanker drivers need additional safety qualifications, which the government will work with industry to ensure drivers can access as quickly as possible.
To help make sure new drivers can be road ready as quickly as possible, the Department for Transport (DfT) have also agreed to work with Driver and Vehicles Standards Agency (DVSA) to ensure that tests will be available for participants who have completed training courses as soon as possible.
The Ministry of Defence (MOD) has also announced the immediate deployment of their Defence Driving Examiners (DDEs) to increase the country’s testing capacity. MOD examiners will work alongside DVSA examiners, providing thousands of extra tests over the next 12 weeks.
The letter, which will arrive on doormats over the coming days, sets out that the steps the road haulage sector is taking to improve the industry, including increased wages, flexible working and fixed hours.
Alongside this, 5,000 HGV drivers will be able to come to the UK for 3 months in the run-up to Christmas, providing short-term relief for the haulage industry. A further 5,500 visas for poultry workers will also be made available for the same short period, to avoid any potential further pressures on the food industry during this exceptional period.
Recruitment for additional short-term HGV drivers and poultry workers will begin in October and these visas will be valid until 24 December 2021. UK Visas and Immigration (UKVI) are preparing to process the required visa applications, once made, in a timely manner.
However, we want to see employers make long term investments in the UK domestic workforce instead of relying on labour to build a high-wage, high-skill economy.
Visas will not be the long term solution, and reform within the industry is vital. That’s why the government continues to support the industry in solving this issue in the long term through improved testing and hiring, with better pay, working conditions and diversity.
Transport Secretary Grant Shapps said: This package of measures builds on the important work we have already done to ease this global crisis in the UK, and this government continues to do everything we can to help the haulage and food industries contend with the HGV driver shortage.
“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.
“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.”
Separately, the government is also bringing in legislation to allow delegated driving examiners at the three emergency services and the MOD to be able to conduct driving tests for one another. This will give the emergency services greater flexibility and help increase the number of tests DVSA examiners can provide HGV examiners.
The government will also provide funding for both medical and HGV licences for any adult who completes an HGV driving qualification accessed through the Adult Education Budget in academic year 2021/22.
Previously, adults who took these qualifications had to pay for their own licences. This change will be backdated and applied to anyone who started one of these qualifications on or after August 1st 2021.
Education Secretary Nadhim Zahawi said: “HGV drivers keep this country running. We are taking action to tackle the shortage of drivers by removing barriers to help more people to launch new well-paid careers in the industry, supporting thousands to get the training they need to be road ready.
“As we build back from the pandemic we’re committed to supporting people, no matter their background, to get the skills and training they need to get good jobs at any stage of their lives, while creating the talent pipeline businesses need for the future.”
Environment Secretary George Eustice said: “It is a top priority to ensure that there are enough workers across the country’s supply chains to make sure they remain strong and resilient.
“We have listened to concerns from the sector and we are acting to alleviate what is a very tight labour market.”
The government has been able to bring forward these solutions in response to a global issue made worse by coronavirus thanks to our existing work in this area. We have already taken a range of steps to support the industry, including streamlining the process for new HGV drivers and increasing the number of driving tests. Our measures provided a rapid increase in capacity and allow for an extra 50,000 tests to take place per year.
Progress has already been made in testing and hiring, with improving pay, working conditions and diversity. We continue to closely monitor labour supply and work with sector leaders to understand how we can best ease particular pinch points. Through our Plan for Jobs we’re helping people across the UK retrain, build new skills and get back into work.
The Food and Drink Federation’s Chief Executive, Ian Wright CBE, said: “We welcome the government’s pragmatic decision to temporarily add HGV drivers and poultry workers to the existing visa scheme.
“This is something UK food and drink manufacturers have asked for over the last few months – including in industry’s Grant Thornton report – to alleviate some of the pressure labour shortages have placed on the food supply chain.
“This is a start but we need the government to continue to collaborate with industry and seek additional long term solutions.”
Elizabeth de Jong, Logistics UK’s Director of Policy, said: “Logistics UK welcomes the government package of measures aimed at improving the ongoing driver crisis. The government’s decision to grant 5,000 temporary visas for HGV drivers to help in the short term is a huge step forward; we are so pleased the government has listened to our calls and has made this bold decision to support the UK economy.
“We are also delighted that DfT have agreed to jointly send nearly 1 million letters to all drivers who currently hold an HGV driving licence. With fantastic HGV driving opportunities available in the logistics industry, now is the perfect time to consider returning to the occupation.”
The Road Haulage Association says there is a shortage of around 100,000 drivers across the UK, with this particularly impacting the food and drink supply chain.
The Road Haulage Association’s Rod McKenzie said: “This is a major win for @RHANews in our long campaign on #lorrydriver shortage – but temp visas won’t solve it. Much more needs to be done on training, apprenticeships, testing and welfare facilities for truckers.”
British Chamber of Commerce President, Baroness Ruby McGregor-Smith CBE said:“Government has made clear its priority is to transition from a reliance on EU workers to a focus on the domestic workforce, and businesses have been ready to participate in this, but it is a long-term project.
“A managed transition, with a plan agreed between government and business, should have been in place from the outset. Instead, the supply of EU labour was turned off with no clear roadmap as to how this transition would be managed without disruption to services and supply chains.
“Now some action has been taken, but additional testing will take time and the low number of visas offered is insufficient. Even if these short-term opportunities attract the maximum amount of people allowed under the scheme, it will not be enough to address the scale of the problem that has now developed in our supply chains.
“This announcement is the equivalent of throwing a thimble of water on a bonfire.
“Government should be prepared to significantly expand the number of visas issued within this scheme and convene a summit that brings business and government together to find both immediate and longer-term solutions to the many challenges facing firms throughout the UK.
“Without further action, we now face the very real prospect of serious damage to our economic recovery, stifled growth as well as another less than happy Christmas for many businesses and their customers across the country.”
Hannah Essex, Co-Executive Director of the British Chambers of Commerce, said:“Chambers of Commerce have been warning Government about critical labour shortages for months now – not just in the food and haulage industries but in hospitality, construction, the care sector and elsewhere in the economy. Whilst businesses will welcome that government is finally taking action, this scheme does not go far enough.
“BCC data has shown that 76% of hospitality businesses, and 82% of construction firms have faced recruitment difficulties in recent months. At the same time, we found 3 out of 4 exporters reporting no growth in sales in Q2.
“Businesses are facing the most difficult environment for a generation. On top of labour shortages – border delays, increased debt and the rising cost of materials, shipping and energy are all putting huge pressure on firms struggling to recover from the pandemic. All of these issues are hitting smaller firms the hardest.
“Attempts to address the deficit of HGV drivers and poultry workers is a step forward, but these industries are only the tip of the iceberg when it comes to the huge impact of the current labour shortages. Without a comprehensive plan to tackle this issue across the board we are facing a winter of lost opportunities for our businesses, hampering the UK’s economic recovery.”
As increasing numbers of supermarkets and shops try to deal with the challenge of replenishing shelves in time to meet demand, the Scottish Government has asked consumers to shop considerately – in particular to ensure those in the frontline of dealing with COVID-19 are able to get the supplies they need.
Rural Economy Secretary Fergus Ewing said: “Ensuring that we all have access to food and other essentials is key to our safety and wellbeing in these unprecedented times.
“I want to thank everyone working to produce food, distribute it and sell it in shops and supermarkets for all their efforts to keep products on the shelves.
“For the past week I have been in close contact with Scotland’s national retailers, who confirmed that they have sufficient stocks to provide enough food and other essentials for everyone.
“The issue is that, currently, demand is so high that products cannot be replenished on shelves in time, which is creating a perception of food shortages. This is a false picture though, and pressure on the supply could be greatly eased if shoppers buy just what they need rather than stockpiling. So I am calling on consumers to please shop considerately.
“In particular I would ask people to think about the needs and interests of our frontline and key workers who cannot get to the shops as often as the rest of us and who are shopping at unsocial hours.
“Please also consider helping those who can’t get to the shops themselves, especially elderly and vulnerable neighbours, family and friends who are being asked to restrict their social contact. And consider supporting local businesses and smaller retailers in the community by giving them your custom as well.
“I also want to assure consumers that the Scottish Government is continually working with the food and drink industry and liaising closely with local government and other governments across the UK to ensure that fresh food and supplies remain available across all of Scotland.
We have already acted to enable local authorities to relax restrictions on delivery hours, delivery driver work patterns, and shop opening times to help supermarkets and shops remain stocked and allow shoppers more opportunity to access supplies out of normal business hours. We remain committed to doing all we can to keep the shelves stocked – the public has a pivotal role to play in helping us do that.”
This is a message of thanks to our customers for their patience and support and to our colleagues and suppliers for their hard work in dealing with the uncharted challenges and uncertainty presented by the spread of Coronavirus (COVID-19).
Whilst customers are stocking up, our colleagues are working around the clock to fill our stores with what you need, to serve our customers and communities and take care of one another when we need each other most.
We want to let you know that looking after our customers and colleagues is our priority at Morrisons, ensuring we all have a clean, safe place to shop and work.
We are working hard to fill our shops and online stores:
• We are a Foodmaker and Shopkeeper and we’re increasing the amount of food we make in our British manufacturing sites to meet customers’ needs
• We’ve increased the amount of stock being sent to stores from our warehouses, with colleagues working incredibly hard
• We’re extending our home delivery service so we can deliver to more customers on their doorstep at the times they need us
• We’re introducing temporary purchase limits on products where there is high demand, so they remain available for longer for more customers to buy
• Cleaning in our stores is being increased throughout the day to ensure high standards of food safety and store cleanliness are maintained
We are following guidance provided by the Government, working closely with our suppliers and ensuring we collectively do everything possible to help the country in these challenging times.
I want to personally thank all our dedicated colleagues who are working very hard in very challenging circumstances, to serve our customers, support our communities and take care of one another.
We expect the days, weeks and months ahead to be testing. I know that working together to support each other we will meet the many challenges we will face.
We have plans in place to respond as the situation develops and we are working every day to meet the changing nature of the impact of this pandemic.
I would like to ask all our customers, when shopping with us, to please consider others even more so everyone can buy what they need, especially those who are most vulnerable in our society. Please continue to treat our colleagues on the front line with the greatest respect.
Thank you for shopping with Morrisons. We promise to do our very best to work together, to support our customers and each other as we face into this challenge.
You will have seen that, due to the ongoing uncertainty around the full impact of Coronavirus, supermarkets have been much busier than usual and customers are choosing to stock up.
I wanted to personally reassure you that we have more food and other essential items coming to us from manufacturers and into our warehouses and distribution centres. If we all shop just for the food that we and our families need, there will be enough for everyone.
I also wanted to let you know that at Sainsbury’s, we are working really hard to ensure this remains the case. Over the past two weeks we have:
Ordered more stock of essential items from our suppliers
Put more capacity into our warehouses and
Set limits on a small number of items, including some cleaning products, soap and pain relief.
This is a precautionary measure – if everyone shops normally, there will be enough for everyone.
There are gaps on shelves because of increased demand, but we have new stock arriving regularly and we’re doing our best to keep shelves stocked. Our store colleagues are working tirelessly and doing the best job they can.
Which brings me onto a request. Please think before you buy and only buy what you and your family need.
If we all do this then we can make sure we have enough for everyone. And please help elderly and vulnerable friends, family and neighbours with their shopping if you can.
I wanted to take this opportunity to thank you for your continued support and to thank our colleagues who are all working incredibly hard to ensure we can continue to serve our customers well.
‘THERE IS ENOUGH FOR EVERYONE IF WE ALL WORK TOGETHER’
Food banks are facing huge challenges due to panic buying caused by public fears over the coronavirus.
Over the last week there have been growing shortages on supermarket shelves as worried shoppers stockpile tinned goods, pasta, toilet rolls and other essential goods – despite an appeal for common sense.
Major supermarkets responded to what is bordering on mass hysteria by issuing a joint letter yesterday:
Panic buying is having a serious effect on food bank stocks and there are fears that some may have to close unless some sanity is restored.
Emma Revie, chief executive of the Trussell Trust said last week: “Time and again over the past decade, food banks across the UK – aided by a generous public who have donated time, food and money – have stepped up to protect people on the lowest incomes in our communities. But with the spread of coronavirus we all now face an unprecedented challenge and uncertain future.
It is possible that food banks will face increased demand as people lose income, at the same time as food donations drop or staff and volunteers are unavailable, due to measures rightly put in place to slow the spread of infection. All of this comes when food banks are already dealing with a record level of need for emergency food.
“We’re working with our network on how best to support people as the situation unfolds. Wherever possible, food banks will continue to provide the lifeline of emergency food to people unable to afford the essentials and we encourage the public to continue donating after checking with their local food bank what items are most needed.
“We welcome the Department for Work and Pensions’ measures that will not penalise or sanction people for self-isolating, but we ask our government to go further and consider additional measures they could take to ensure everyone has enough money for essentials at this challenging time. Ending the five week wait for a first Universal Credit payment would be one such measure that could help significantly.”
