# Britain has 10 days to save Christmas, retail sector says
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-09-24
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Beware! Christmas Chaos Looms as UK Retail Industry Warns
Meta Description: British retailers issue urgent warning to government over the critical shortage of truckers, as energy prices soar and supply chains face potential collapse.
URL: https://financedigest.com/britain-has-10-days-to-save-christmas-retail-sector-sayshtml

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By James Davey, Victor Jack and Kylie MacLellan

LONDON (Reuters) -Britain’s retail industry warned the government on Friday that unless it moves to alleviate an acute shortage of truckers in the next 10 days then significant disruption was inevitable in the run-up to Christmas.

As the world’s fifth-largest economy emerges from COVID-19 lockdowns, 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](https://www.financedigest.com/queues-form-at-fever-clinics-as-china-wrestles-with-covid-surge.html "Queues form at fever clinics as China wrestles with COVID surge") 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](https://www.financedigest.com/online-reputation-and-customer-centricity-will-lead-the-way-for-retail-banking-in-this-new-era-of-approachability.html "ONLINE REPUTATION AND CUSTOMER CENTRICITY WILL LEAD THE WAY FOR RETAIL BANKING  IN THIS NEW ERA OF APPROACHABILITY:").

In a rush to fill up, drivers also queued at some gas stations in London and the southern English county of Kent. Diesel ran out at one station visited by Reuters.

For months supermarkets, processors and farmers have [warned that a shortage of heavy](https://www.financedigest.com/uk-motor-and-home-insurers-headed-for-heavy-losses-ey-warns.html "UK motor and home insurers headed for heavy losses, EY warns") goods vehicle (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](https://www.financedigest.com/valentines-day-spending-boosts-british-retail-sales-in-february-brc.html "Valentine’s Day spending boosts British retail sales in February – BRC") Consortium, the retail industry’s lobby group.

HGV drivers are the glue which hold our [supply chains](https://www.financedigest.com/ge-shares-slump-as-supply-chain-inflationary-woes-threaten-profit-outlook.html "GE shares slump as supply chain, inflationary woes threaten profit outlook") 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](https://www.financedigest.com/42-of-retailers-say-payment-over-time-solutions-are-very-important-to-ensuring-future-digital-innovation.html "42% of retailers say payment-over-time solutions are ‘very important’ to ensuring future digital innovation") 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](https://www.financedigest.com/spain-offers-to-pay-companies-testing-a-4-day-work-week.html "Spain offers to pay companies testing a 4-day work week") 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](https://www.financedigest.com/greece-britain-discussing-parthenon-sculptures-return-but-deal-not-close-athens-says.html "Greece, Britain discussing Parthenon Sculptures return but deal not close, Athens says") was cast by allies as the “sick man of Europe” with three-day weeks, energy shortages and rampant inflation.

‘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](https://www.financedigest.com/aussie-supermarkets-set-to-capitalise-on-high-inflation-but-softer-demand-ahead.html "Aussie supermarkets set to capitalise on high inflation, but softer demand 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](https://www.financedigest.com/russias-putin-indias-modi-to-discuss-trade-food-supplies-on-friday.html "Russia’s Putin, India’s Modi to discuss trade, food supplies on Friday") 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](https://www.financedigest.com/uk-not-planning-covid-testing-for-travellers-from-china.html "UK not planning COVID testing for travellers from China") so Britain was doubling the number of tests. Asked if the government would [ease visa rules](https://www.financedigest.com/britain-plans-new-data-rules-to-ease-compliance-burden.html "Britain plans new data rules to ease compliance burden"), 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](https://www.financedigest.com/accelerate-cloud-journey-make-sure-data-drivers-seat.html "As You Accelerate on Your Cloud Journey, Make Sure Data is in the Driver’s Seat").

We should [see it smooth out fairly quickly,”](https://www.financedigest.com/ifrs-16-cfos-can-see-quick-gains-connected-planning-technology.html "IFRS 16: CFOs can see quick gains with Connected Planning technology") he said.

[British ministers](https://www.financedigest.com/british-doctors-strikes-risk-patient-safety-minister-says.html "British doctors’ strikes risk patient safety, minister says") are due to meet later on Friday in an attempt to hash out a fix.

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](https://www.financedigest.com/analysis-energy-hungry-europe-cant-look-to-u-s-shale-to-fill-any-opec-gap.html "Analysis-Energy hungry Europe can’t look to U.S. shale to fill any OPEC gap"), while British drivers are being trained for the future.

“It’s an enormous challenge,” Rod McKenzie, head of policy at the RHA, told Reuters. 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](https://www.financedigest.com/thousands-of-british-postal-workers-walk-out-over-pay.html "Thousands of British postal workers walk out over pay").

“It’s a tough job. We the [British do not help truckers in the way that Europeans and Americans do by giving](https://www.financedigest.com/giving-substance-hype-digital-catapult-reveals-strength-depth-british-blockchain-industry.html "Giving substance to the hype: Digital Catapult reveals strength and depth of British blockchain industry") 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](https://www.financedigest.com/amazon-loses-bid-to-throw-out-case-by-uk-drivers-seeking-worker-rights.html "Amazon loses bid to throw out case by UK drivers seeking worker rights").

Shapps, who said the driver shortage was not due to Brexit, said COVID-19 exacerbated the problem given that Britain was unable to [test 40,000 drivers during lockdowns](https://www.financedigest.com/in-shanghai-lockdown-blues-make-way-for-covid-testing-gripes.html "In Shanghai, lockdown blues make way for COVID testing gripes").

(Additional reporting by Gerhard Mey, Kate Holton, Michael Holden and Paul Sandle; Writing by Guy Faulconbridge; Editing by Toby Chopra nd Nick Macfie)


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