Boris Johnson, UK prime minister, has refused to put away speculation that the current economic crisis due to workers’ and commodities shortages could last till the festive period in December. He stresses the fact that the economy is passing through a transition period due to the aftermath of the Brexit.
The UK Fuel Crisis Has Started to Reduce
The prime minister spoke about the fuel crisis at a conference in Manchester. He claims the petrol and gas crisis is not much more under control as measures have been taken to stock up fueling stations. Indeed, dozens of military drivers have been commissioned to supply fuel to several gas stations.
Brian Madderson, chairman of the Petrol Retailers Association, confirms that the situation has improved considerably in Scotland, the Midlands and in the North, but a lot of fuel supply is still needed in London as well as the South East.
General Shortages in the Economy May Linger Till Christmas as the Economy Keeps Transitioning
Boris Johnson, however, stopped short of giving any clue as to whether the trunk driver and other labour shortages would be entirely resolved before Christmas. He claimed, however, that things would definitely be better than last year when the country was ravaged by COVID.
He, however, acknowledged that the economy was facing tough times as it tries to transition from the broken model, which he claims was refused by voters in the 2016 and 2019 Brexit referendums. According to him, the broken model relied on lower wages for lower skills, which eventually resulted in very low productivity.
In another interview with the BBC, Johnson claims to be well acquainted with the situation of trunk driver shortages long before they happened and that the solution to their shortage was better wages and salaries
Uncontrolled Immigration Will Be Discouraged Despite the Labor Shortage
Boris Johnson did make it clear that he would not attempt to solve the crisis of labor shortages by removing the strict check on immigration. The government has, however, agreed to award temporary visas to 5000 truck drivers and another 5000 poultry workers to address the chronic shortages in those sectors.
Shevaun Haviland, who is the Director General for the British Chambers of Commerce, insists that more business sectors need to be added to the shortage occupation list and supported by the ministers. Although this is not an excuse to ask for uncontrolled immigration, she added. Businesses like this include care, manufacturing, care, construction, hospitality etc.
As the UK transitions into the Brexit era, the situation in the UK crisis could have a bearish long-term effect on the pound and the economy.
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