London Daily

Focus on the big picture.
Wednesday, Nov 04, 2026

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
Department for Energy Security and Net Zero Approves Construction of New North Sea Offshore Wind Hub
Northern Ireland Executive Finalizes Public Sector Pay Agreements Following Months of Inter-Agency Negotiations
Welsh First Minister Eluned Morgan Secures Cross-Party Support for Regional Clean Energy Infrastructure Bill
Competition and Markets Authority Launches Formal Investigation Into Dominant Artificial Intelligence Cloud Partnerships
United Kingdom Foreign Secretary David Lammy Concludes High-Level Diplomatic Mission to Washington and Ottawa
Scottish Government Announces Emergency Housing Investment Package to Address Escalating Urban Homelessness
Chancellor Rachel Reeves Finalizes Corporate Tax Adjustments Ahead of Upcoming Business Investment Summit
National Health Service England Unveils Emergency Winter Resilience Plan to Combat Projected A&E Overcrowding
Bank of England Monetary Policy Committee Votes to Hold Base Interest Rate Steady at Four Point Seven5 Per Cent
UK Gross Domestic Product Expands by Zero Point Four Per Cent in Third Quarter Driven by Resilient Services Growth
Northern Ireland Executive Agrees on Multi-Year Public Sector Pay Restructuring Framework at Stormont
Department for Transport Confirms Acceleration of Electric Vehicle Charging Infrastructure Rollout Along Strategic Motorways
Welsh Government Announces Emergency Funding Package to Support Agricultural Sector Facing Severe Weather Impacts
High Court Rules in Favor of Environmental Coalition Over Government Carbon Reduction Plan Deficiencies
Office for National Statistics Reports Stable Retail Sales Growth Supported by Strong Digital Commerce Volumes
Scottish First Minister John Swinney Secures Cross-Party Support for Renewable Energy Export Expansion
National Health Service Digital Reports Major Breakthrough in Reducing Elective Waiting Lists Across England
Chancellor Rachel Reeves Outlines Infrastructure Spending Reforms to Boost Regional Economic Growth Across Northern England
Bank of England Holds Baseline Interest Rate at Five Percent Amid Persistent Core Inflation Pressures
House of Lords Advances Representation of the People Bill to Modernize Electoral Law Ahead of General Election
Financial Markets and Private Equity Assess Tax and Corporate Realignment Following Recent Chancellor Budget Adjustments
Justice Committee Warns Legal Aid Is a Service in Managed Decline Due to Inadequate Government Funding Responses
Royal Navy Intercepts Russian Intelligence Vessel and Warships Across Intensive North Sea Operations
Business and Trade Committee Slams Government Policy on China as Fragmented and Lacking Strategic Direction
Home Secretary Shabana Mahmood Softens Immigration Plans Following Intensive Cabinet Backlash Over Settlement Timelines
Automotive Industry Data Reveals Continued Acceleration in Battery Electric Vehicle Registrations Across British Dealerships
High Court of England and Wales Rules on Landmark Legal Challenge Regarding Local Government Housing Mandates
Department for Energy Security and Net Zero Approves Expanded Offshore Wind Infrastructure Along Scottish Coastline
Competition and Markets Authority Launches Broad Investigation Into Artificial Intelligence Infrastructure and Cloud Partnerships
United Kingdom and European Union Launch High-Level Preparations for Bilateral Defense and Security Summit in Brussels
National Health Service England Unveils Emergency Workforce Reforms to Alleviate Winter Accident and Emergency Pressures
Chancellor Rachel Reeves Finalizes Autumn Budget Adjustments to Meet Fiscal Rules and Fund Public Services
Bank of England Prepares for Interest Rate Decision Amid Rising Bond Yields and Inflationary Pressures
House of Lords Begins Detailed Legislative Scrutiny of Representation of the People Bill and Cyber Security Laws
Metropolitan Police Detain More Than Three Hundred Individuals Following Large-Scale Demonstration Outside London Embassy
Home Office Prepares Stricter Residency Rules Requiring Vulnerable Migrants to Wait Decade for Settlement Rights
Professional Mental Health Bodies Demand Statutory Regulation for Counsellors and Psychotherapists
National Grid Confirms Construction of Britain's Largest Electrical Substation to Power Teesside Data Centre
Prime Minister Keir Starmer Travels to Samoa for Commonwealth Summit Amid Debates on Economic Cooperation and Reparations
Home Office Implements Enhanced Digital Border Controls and Visa Processing Systems at Major Airports
Office for National Statistics Reports Stable Employment Participation Rates Across Regional Labor Markets
Department for Business and Trade Announces Strategic Partnership to Secure Critical Mineral Supply Chains
Scottish Government Unveils Regional Economic Development Strategy to Boost Advanced Manufacturing in Glasgow and Dundee
Treasury Officials Review Taxation Frameworks and Capital Gains Rules Ahead of Autumn Budget Disclosures
National Health Service Leaders Warn of Winter Capacity Pressures Across Acute Care Facilities
Bank of England Prepares for Key Interest Rate Decision Amid Sticky Inflation and Fiscal Policy Pressures
Home Office Expands Border Security Operations and Intelligence Sharing With European Partners
Office for National Statistics Reports Modest Retail Sales Growth Ahead of Crucial Christmas Trading Season
Welsh Government Unveils Strategic Plan to Boost Regional Technology Innovation and Digital Skills Training
Department for Environment Food and Rural Affairs Implements New Agricultural Subsidies Framework for English Farmers
×