Army tanker drivers are to start delivering fuel to petrol stations from Monday in an emergency government move prompted by the continuing crisis at the pumps.
Senior ministers have been alarmed at how slowly the fuel supply disruption is improving, with motorists still forced to queue for hours for fuel after more than a week of forecourt chaos.
Almost 200 soldiers – including 100 drivers – have been training with haulage firms this week, learning how to fill up tankers and petrol pumps, and the first army deliveries will be made early on Monday morning.
Image: Fuel shortages have improved for most areas but are still not back to normal
Announcing the move, Defence Secretary Ben Wallace said: “Across the weekend over 200 military personnel will have been mobilised as part of Operation Escalin.
“While the situation is stabilising, our Armed Forces are there to fill in any critical vacancies and help keep the country on the move by supporting the industry to deliver fuel to forecourts.”
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At the same time, Cabinet Office minister Steve Barclay, who is in charge of the government’s response to the fuel crisis, appealed to motorists to stop panic buying at the pumps
“The government has taken decisive action to tackle the short-term disruption to our supply chains, and in particular the flow of fuel to forecourts,” he said.
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“We are now seeing the impact of these interventions with more fuel being delivered to forecourts than sold and, if people continue to revert to their normal buying patterns, we will see smaller queues and prevent petrol stations closing.”
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Gridlock in northwest London due to petrol queues
“Thanks to the immense efforts of industry over the past week, we are seeing continued signs that the situation at the pumps is slowly improving,” Business Secretary Kwasi Kwarteng claimed.
“UK forecourt stock levels are trending up, deliveries of fuel to forecourts are above normal levels, and fuel demand is stabilising.
“It’s important to stress there is no national shortage of fuel in the UK, and people should continue to buy fuel as normal. The sooner we return to our normal buying habits, the sooner we can return to normal.”
But the decision to send in the army came as Rishi Sunak, the chancellor, issued a gloomy warning that shortages of goods could last until Christmas.
“These shortages are very real,” Mr Sunak said in a Daily Mail interview. “We’re seeing real disruption in supply chains in different sectors, not just here but around the world.”
And admitting that families face a “challenging” winter, the chancellor added: “We’re determined to do what we can to try to mitigate as much of this as we can.”
Image: There continues to be long queues at petrol stations in some parts of the country
It also followed a warning by the Petrol Retailers Association, which represents independent garages, that more than a quarter of its filling stations have no fuel.
Calling on Boris Johnson to “take emergency action to get a grip”, Sir Keir also called for extended opening hours for petrol stations to help NHS shift workers and other key workers.
And he urged the prime minister to recall parliament and hold an emergency summit of the road haulage industry, training providers, business groups, government ministers and transport unions to focus on the immediate crisis.
The government says it is already taking a range of measures to ease temporary supply chain pressures in food haulage industries, brought on by the pandemic and the global economy rebounding around the world.
In a further step to manage these pressures in the short term, the government is introducing a scheme allowing fuel tanker drivers and food haulage truckers to work in the UK immediately on a temporary basis.
Under these plans:
• 300 fuel drivers will be able to arrive immediately, subject to immigration checks, and stay to work until the end of March 2022
• 4,700 food haulage drivers who will arrive from late October and leave by 28 February 2022
• 5,500 poultry workers who will arrive from late October and be able stay up to 31 December 2021
The government says these temporary, time-limited visa measures, do not detract from a commitment to upskill and increase the wages of domestic labour, but are in recognition of the extraordinary set of circumstances affecting the stability of the UK supply chain.
Image: Motorists are still forced to queue for hours for fuel after more than a week of forecourt chaos
Ministers say they want to see employers make long-term investments in the UK domestic workforce instead of relying on overseas labour to build a high-wage, high-skill economy.
In addition to short-term fixes, the government says it is also working with industry to find long-term solutions to the shortage of HGV drivers through improved testing and hiring, with better pay, working conditions and diversity.
To help with recruitment, the government also says it is collaborating with freight associations to drive up standards of lorry parking facilities, helping to make the HGV industry more attractive for prospective drivers and supporting the wellbeing of those currently working as lorry drivers.
Other moves include an immediate increase in HGV testing and new skills boot camps to train up to 4,000 more people to become HGV drivers.
The chancellor has confirmed she is considering “changes” to ISAs – and said there has been too much focus on “risk” in members of the public investing.
In her second annual Mansion House speech to the financial sector, Rachel Reeves said she recognised “differing views” over the popular tax-free savings accounts, in which savers can currently put up to £20,000 a year.
She was reportedly considering reducing the threshold to as low as £4,000 a year, in a bid to encourage people to put money into stocks and shares instead and boost the economy.
However the chancellor has shelved any immediate planned changes after fierce backlash from building societies and consumer groups.
In her speech to key industry figures on Tuesday evening, Ms Reeves said: “I will continue to consider further changes to ISAs, engaging widely over the coming months and recognising that despite the differing views on the right approach, we are united in wanting better outcomes for both savers and for the UK economy.”
She added: “For too long, we have presented investment in too negative a light, quick to warn people of the risks, without giving proper weight to the benefits.”
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6:36
Rachel Reeves’s fiscal dilemma
Ms Reeves’s speech, the first major one since the welfare bill climbdown two weeks ago, appeared to encourage regulators to focus less on risks and more on the benefits of investing in things like the stock market and government bonds (loans issued by states to raise funds with an interest rate paid in return).
She welcomed action by the financial regulator to review risk warning rules and the campaign to promote retail investment, which the Financial Conduct Authority (FCA) is launching next year.
“Our tangled system of financial advice and guidance has meant that people cannot get the right support to make decisions for themselves”, Ms Reeves told the event in London.
Last year, Ms Reeves said post-financial crash regulation had “gone too far” and set a course for cutting red tape.
On Tuesday, she said she would announce a package of City changes, including a new competitive framework for a part of the insurance industry and a regulatory regime for asset management.
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4:21
Reeves is ‘totally’ up for the job
In response to Ms Reeves’s address, shadow chancellor Sir Mel Stride said: “Rachel Reeves should have used her speech this evening to rule out massive tax rises on businesses and working people. The fact that she didn’t should send a shiver down the spine of taxpayers across the country.”
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The governor of the Bank of England, Andrew Bailey, also spoke at the Mansion House event and said Donald Trump’s taxes on US imports would slow the economy and trade imbalances should be addressed.
“Increasing tariffs creates the risk of fragmenting the world economy, and thereby reducing activity”, he said.
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