A worsening driver shortage in the U.K. - exacerbated by Brexit and the pandemic - is increasing costs for businesses and leading to empty shelves 1/ bloomberg.com/news/articles/…
Multiple factors have come to a head to cause the shortage, including:
- EU drivers returning home post-Brexit
- Brexit customs delays tying up vehicles for longer
- Covid disrupting tests for new drivers, creating a big backlog waiting to get licences 2/
So what's happening on the ground? Supermarkets are beginning to see gaps in their supplies. Fresh produce is going to waste because it's not being collected. And businesses face a daily struggle and higher costs to get their goods to market 3/
What's the solution? The haulage industry wants a temporary visa scheme to get more EU drivers back, but this is being resisted by the government. “Employers should invest in our domestic workforce'' DfT said in a statement 4/
Driver wages are starting to rise, which should help plug the shortfall. The average salary for an HGV driver pre-pandemic was £32k. Agency drivers can now make £40k+ and it's rising, according to @DriverRequire 5/
Moreover, there are 300,000 qualified lorry drivers in the U.K. who currently work in other fields, having quit the profession due to poor pay and conditions. They'll come back if the price is right, says @kieransmithuk 6/
But it's going to be a painful adjustment period. The July 19 easing of restrictions may also put more pressure on supply chains as demand in the economy increases further -- it's a tough time to be in logistics... 7/ bloomberg.com/news/articles/…
And here's my take on the problem on @BloombergTV
ends/
New: a fresh Brexit spat over fish has been averted, as Jersey extends a transition period for French vessels in its waters 1/ bloomberg.com/news/articles/…
You’ll remember the remarkable scenes in May, when France and Britain sent naval ships to the island after French fishermen threatened a blockade 2/ bloomberg.com/news/articles/…
Well a July 1 deadline was approaching, after which new licensing restrictions would’ve hit French boats. As locals predicted at the time, the French would be back… 3/ bloomberg.com/news/articles/…
New: Joining CPTPP would boost Britain's GDP by 0.08% over 15 years compared to its 2019 level, government says in scoping assessment 1/ bloomberg.com/news/articles/…
The government has finally published a long-awaited economic assessment of joining the CPTPP, an 11-nation pact which includes the likes of Australia, US, Japan, Canada and New Zealand 2/ assets.publishing.service.gov.uk/government/upl…
You'll remember the scoping assessment of the UK-Australia trade deal famously said it would boost GDP by 0.02% over the long run -- while quitting the EU is deemed due to leave Britain's economy 4% smaller 3/ obr.uk/box/impact-of-…
Safeguards in the UK-Australia trade deal aren't enough to protect British farmers, the NFU warns 1/ bloomberg.com/news/articles/…
The main controversy around the Australia trade deal is the prospect of British farmers being undercut by cheaper Australian meat produced on larger farms, which may use production methods and practices banned in the U.K., as @EmilyThornberry argued here 2/
Govt says it is protecting farmers by capping meat imports from Australia e.g. allowing only 35,000 tonnes of beef in tariff-free, with the cap gradually falling away over time. @trussliz said this cap represents 15% of all UK beef imports from the EU 3/
New: The U.K. is hiring for a director of a ‘Brexit Opportunities’ unit which will sit in the Cabinet Office, as Johnson seeks upsides outside the EU 1/ bloomberg.com/news/articles/…
The desired candidate will have “experience in economics, regulation or business’’ and will create a “cross-government strategy for regulatory change’’, the government said in a statement 2/
A separate taskforce including Iain Duncan Smith and Theresa Villiers has also published a report on post-Brexit opportunities - they urge simplifying rules and being more ‘flexible’ and ‘agile’ when regulating in future 3/
Broad terms of the agreement were finalized between Boris Johnson and Australian PM Scott Morrison at a dinner on Monday night 2/
Key question is the detail for farmers - we're expecting features like long transitions on cutting tariffs, to give British farmers chance to adjust to cheaper imports 3/ bloomberg.com/news/articles/…
And the situation wasn't resolved. UK businesses can't sell raw sausages to the EU since Brexit. But Northern Ireland got a 6-month grace period.. 2/ bbc.co.uk/news/business-…
Which is due to expire on June 30. (Remember, NI is treated as if in the EU's single market.) And now the UK is considering breaking the Brexit deal again by unilaterally extending the grace period, according to the Telegraph 3/ telegraph.co.uk/politics/2021/…