Driver shortage could push food prices higher, warn hauliers and stores

SUPERMARKETS and hauliers have warned shoppers could face longterm higher prices as result of changes to the supply chain.

Bosses at the Road Haulage Association say the “substantial” pay rises offered by firms in need of new drivers could force supermarket bosses to pass costs to customers.

Hauliers have warned that there is a shortfall of around 100,000 drivers. This has been driven by thousands of European drivers leaving during the pandemic and not returning, as well as “high numbers” of workers retiring. The average age of an HGV driver in the UK is 55.

Retailers and restaurants chains, including Nando’s and McDonald’s, have been hit by product shortages as meat packers and other manufacturers have also faced significant worker shortages.

The Government introduced a seasonal worker visa scheme in December for 30,000 workers, primarily for the summer fruit picking season, but meat processors were excluded.

Rod McKenzie, managing director of policy and public affairs at the Road Haulage Association, said that the shortage of drivers needs urgent Government action and firms have offered better incentives and pay deals to secure potential recruits.

“Certainly drivers’ pay is increasing, often by quite substantial amounts,” he said.

“This in turn is a cost that will need to be passed on, and given the tight profit margins of most haulage operators that means their rates to customers will have to go up.

“In turn, this may mean more of us paying higher prices for goods, services and shopping – including food prices – going forward.”

One supermarket said increasing wages for drivers would result in inflationary pressure for retailers.

“Paying drivers more, in itself isn’t the solution as it is resulting in them making choices about the level of working hours and balancing reduced hours along with weekend working. It will also create more inflationary pressure in the sector, which no one clearly wants.

“To ease the pressure we need the

Government to quickly allow us to access the EU labour market, whilst the industry must also play its part in increasing the driver pool through fast-track driver programmes and apprenticeships.”

The Road Haulage Association added that the situation is “not getting better” and warned the Government action is needed.

On Tuesday, Tesco chairman John Allan and Iceland managing director Richard Walker were those to warn that they have been impacted by a shortage of HGV drivers.