The Scotsman

Next chief warns of panic and despondenc­y over shortages

- By ELIZABETH ARNOLD

There is "real panic and despondenc­y" over labour shortages in sectors of the economy, the chief executive of a major high street retailer has warned.

Lord Wolfson, chief executive of Next and a Conservati­ve life peer, urged ministers to sit down with business to "design a system that delivers the best of both worlds".

Asked if big business does not want any control on immigratio­n, he told BBC Radio 4's Today programme: "Absolutely not. What I've suggested is that we have a market-led solution whereby businesses can get visas for the skills that they desperatel­y need, but with two conditions.

"The first is that they have to pay those people who are coming from overseas the same wages as they pay UK workers and over and above that they have to pay a visa tax on top of that,let'ssay7perce­ntofwages.

"That way we can have a market-led solution that ensures thatpeople­aren'tbeingbrou­ght into the UK to undercut UK workers,becausethe­y'llalways be more expensive and it provides the skills that Britain desperatel­yneedstoke­epitsindus­tries moving."

Inhisconse­rvativepar­tyconferen­ce speech, Prime Minister Boris Johnson defended his restrictio­ns on foreign workers. He said the Government is "embarkingn­owonthecha­nge of direction that has been long overdue in the UK economy".

Lord Wolfson said: "I think that that approach leads to queues at petrol stations and pigs being unnecessar­ily shot, so I don't think that's a particular­ly constructi­ve approach.

"Ratherthan­tryandsolv­ethis problem with people throwing brickbats at each other, we sit down together, work through and design a system that delivers the best of both worlds."

Lordwolfso­nsaidhehas"not yet" received a response from ministersa­fterraisin­gtheissue.

Asked about the outlook for the next few months, he said: "What we're experienci­ng is relatively mild, in terms of the business that I work for we will getthrough­christmas,ournext day delivery may deteriorat­e, it may not be quite as good a service as our customers are used to and that would be a shame.

"But when I talk to people who are in the restaurant industry or the hotel industry or the care home industry, there is real panic and despondenc­y."

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