Labour crisis causing ‘panic,’ says retail boss

THERE is “real panic and despondency” over labour shortages in sectors of the economy, the boss 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’s say 7% of wages.

“That way we can have a market-led solution that ensures that people aren’t being brought into the UK to undercut UK workers, because they’ll always be more expensive, and it provides the skills that Britain desperately needs to keep its industries moving.”

In his Conservative Party conference speech yesterday, Prime Minister Boris Johnson was expected to defend his restrictions on foreign workers.

He was expected to tell activists the Government is “embarking now on the change 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.”

He added: “Rather than try and solve this problem with people throwing brickbats at each other, we should sit down together, work through and design a system that delivers the best of both worlds.”