British Conservative ministers gather at the annual party conference in the city of Manchester. It has traditionally been a time when the party’s course is announced, ambitious policy plans are unveiled and political successes are toasted late into the night.
But in between the applause, there are also many Tories who frown in concern. Because in recent weeks, the country has been faced with one crisis after another.
So there were empty shelves in supermarkets, long lines at empty gas stations and cries for help from countless companies in the food sector that cannot handle the pressure of the Christmas season. The underlying problem: a shortage of personnel in all kinds of sectors and in particular a glaring shortage of truck drivers.
New kind of economy
Prime Minister Boris Johnson nevertheless does not speak of a “crisis”, but calls it part of the “birth of a new kind of economy”. The country is in “transition” according to the prime minister and thus on the way to a better economic model, where companies pay higher wages for British workers instead of relying on low-paid foreign workers. According to the prime minister, this will lead to better working conditions and an increase in productivity in the country in the long term.
To remedy the acute petrol shortages, since Monday the british army with tankers around to resupply the gas stations. Temporary visas have also been issued for a limited number of migrant workers: 5000 for truck drivers and 5500 for employees in the poultry sector.
So far, only 27 European drivers have signed up for this scheme. That low number raises questions. How willing are European workers to save Britain’s Christmas dinner? According to the transport industry, it is ‘not attractive enough’ for European truck drivers to leave their current job for a short-term contract in the UK.
The army’s assistance at the gas stations could possibly be extended in the event of a lack of applications, but that does not apply to the open vacancies in the food industry. It is unlikely that military personnel will also be used to assist in slaughterhouses or on turkey farms.
Rising costs
Andrew Bailey, governor of the Bank of England, warned that tough weeks lie ahead for the UK economy as inflation picks up and the recovery weakens.
In addition, gas prices are rising across Europe, which will push the energy bills of British households sharply this winter. Some economists are concerned about the combination of rising energy bills, higher food prices and announced tax hikes; a triple financial blow that can hit especially poorer families in the country hard.
But according to Johnson, concerns about inflation and rising prices are premature. What we are seeing now, according to the prime minister, are economic shocks expected from a “giant” awakening after the pandemic.
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