London Daily

Focus on the big picture.
Sunday, Jul 13, 2025

Business group says investing in UK workers won’t solve labour crisis

Business group says investing in UK workers won’t solve labour crisis

Institute of Directors rejects official advice and says flexible visas also needed to cut staff shortages
One of the UK’s biggest business lobby groups has hit back at government advice to invest in domestic workers, saying the move will not solve short-term labour shortages that are increasingly putting retailers and supply chains under pressure.

Leading a growing chorus of business organisations, the Institute of Directors (IoD) called for new, flexible visas that would allow foreign workers to step in to fill crucial roles, particularly as lorry drivers, after an exodus of workers due to Covid and Brexit.

“Whilst UK business should certainly be investing in the skills and capabilities of the domestic workforce, that is unlikely to be a solution to short-term labour market shortages,” said Roger Barker, the IoD’s director of policy. “The government needs to adopt a more pragmatic approach, including a more flexible visa regime, which alleviates some of the current pressures on business.”

A lack of lorry drivers, due in part to the Covid crisis and Brexit, has already put pressure on UK supply chains and left some retailers, fast-food chains and supermarkets struggling to refresh their stock.

Last week, the Confederation of British Industry (CBI) reported that stock levels in August had fallen to their lowest level since retail industry trends were first tracked nearly four decades ago, while McDonald’s ran out of milkshakes and Nando’s was forced to close 50 outlets because of shortages that meant it couldn’t provide its most popular peri-peri dish.

The supply crunch has been blamed on worker shortages in several key industrial sectors, which have been compounded by Covid pressures and a lack of foreign labour due to Brexit. It has forced companies to increase salaries to attract staff, including Waitrose, which is now reportedly prepared to pay £53,780 a year for large goods vehicle drivers, trumping the salaries of some of its head office executives.

Industry groups, including Logistics UK and the British Retail Consortium, have also called on the government to provide temporary UK visas to EU truck drivers to help address the issue.

However, the business secretary, Kwasi Kwarteng, responded by saying employers should invest in UK-based staff rather than relying on foreign labour, particularly as domestic workers could be left without financial support after the furlough programme comes to an end on 30 September.

In a letter to business groups on Friday, Kwarteng urged employers to help the “many UK-based workers [who] now face an uncertain future and need to find new employment opportunities”.

“I am sure you would agree on the importance of utilising the strength of our domestic workforce and how our migration policies need to be considered alongside our strategies to ensure UK-based workers are better able to secure decent employment opportunities,” Kwarteng added.

But other industry bodies, including the CBI and Federation of Small Businesses (FSB), are warning that current staff shortages, if left unaddressed, could put the post-Covid recovery at risk.

“From HGV drivers to hospitality, from skilled food manufacturing workers to expert trades in construction, there’s no doubt that staff shortages are putting pressure on the post-pandemic recovery,” said the CBI’s chief policy director, Matthew Fell.

While the furlough scheme will help ease labour gaps in some cases, he said there were “deeper, structural challenges to address”, including skill shortages.

The number of small businesses saying that skill shortages are holding them back has soared in recent months, according to the FSB’s national chairman, Mike Cherry. “Unless we bring the situation to bear, we risk stifling our economic recovery before it’s even really started,” he added.

“Balance is key here: we need both an immigration system that’s accessible for firms of all sizes, enabling them to access the international talent they need to thrive, as well as renewed efforts to upskill the next generation and reskill workers already in the UK. It’s misleading and unfair to suggest this is an either/or – it’s not a choice,” he said.

“We need to attract back international HGV drivers temporarily, while at the same time investing in domestic training – a process which can take many months.”
Newsletter

Related Articles

0:00
0:00
Close
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
President Trump Visits Flood-Ravaged Texas, Praises Community Strength and First Responders
From Mystery to Meltdown, Crisis Within the Trump Administration: Epstein Files Ignite A Deepening Rift at the Highest Levels of Government Reveals Chaos, Leaks, and Growing MAGA Backlash
Trump Slams Putin Over War Death Toll, Teases Major Russia Announcement
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
A 92-year-old woman, who felt she doesn't belong in a nursing home, escaped the death-camp by climbing a gate nearly 8 ft tall
French Journalist Acquitted in Controversial Case Involving Brigitte Macron
Elon Musk’s xAI Targets $200 Billion Valuation in New Fundraising Round
Kraft Heinz Considers Splitting Off Grocery Division Amid Strategic Review
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
EU Proposes New Tax on Large Companies to Boost Budget
Trump Imposes 35% Tariffs on Canadian Imports Amid Trade Tensions
Junior Doctors in the UK Prepare for Five-Day Strike Over Pay Disputes
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
Bitcoin Reaches New Milestone of $116,000
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
Grok Chatbot Faces International Backlash for Antisemitic Content
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
×