Boris Johnson has not ruled out a further relaxation of immigration rules to help ease the UK’s fuel and supply shortages – but the prime minister insisted he does not want to see a return to “a lot of low-wage immigration”.
Amid the continuing queues at petrol stations across the country, the government has said 300 fuel tanker drivers will be able to come to the UK from overseas “immediately” under a bespoke temporary visa which will last until March.
Some 4,700 other visas intended for foreign food haulage drivers will be extended beyond the initially announced three months and will last from late October to the end of February.
And a total of 5,500 poultry workers will also be allowed in to help keep supermarket shelves stocked with turkeys before Christmas.
But business groups have said the emergency visa schemes do not go far enough, with the UK estimated to have a shortage of 100,000 HGV drivers, according to the Road Haulage Association (RHA).
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There have also been calls for the visa programme to be extended to HGV drivers in all sectors of the retail industry.
Asked on Saturday whether he would rule out further relaxations to immigration rules, Mr Johnson said the possibility of more visas would be kept “under review”.
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“What we have now is a system that allows us to control immigration,” he said.
“That gives us flexibility – we can open up our markets if we need to. And, of course, we’ll keep everything under review.”
Image: Boris Johnson and Health Secretary Sajid Javid visited Leeds General Infirmary on Saturday ahead of the Tory conference
However the prime minister stressed he was hesitant about relaxing immigration rules even further.
“What we don’t want to do is go back to a situation in which we basically allowed the road haulage industry to be sustained with a lot of low wage immigration,” he added.
“That meant that wages didn’t go up and facilities, standards and the quality of the job didn’t go up.
“So the weird thing is now that people don’t want to go into the road haulage industry, don’t want to be lorry drivers, precisely because we’ve had that massive immigration approach and held wages down and held the quality of the job down.
“So we want to see an improvement, we want to see investments in facilities.
“And what you’re now starting to see is, for the first time in over a decade, you’re seeing wages going up around the country, and that is fundamentally a good thing.
“That’s what we need. Wages are going up faster for those on the lower incomes and that is what we mean by levelling up.”
Mr Johnson spoke on a visit to Leeds General Infirmary in West Yorkshire before he travelled to Manchester for the Conservative Party conference, which begins in the city on Sunday.
Asked whether his message to other industries – who have also called for a similar relaxation of immigration rules for their sector – was for them to offer higher pay to attract new workers, the prime minister said: “Getting talented people in from abroad is always a great thing.
“I’ve always been in favour of allowing people who want to come to make their lives here and work hard and have a lot to contribute.
“I’m the descendant of immigrants – many, many people are. But what I also want to see is standards of jobs going up around the country, pay going up around the country.
“And investment in people, in their skills, in their training and also in capital and equipment and facilities.
“Because I think what the UK shouldn’t do is continue to try to be a low-wage low skill, low productivity economy.
“This is the moment. I think people don’t want to see that. They want us to be a well paid well skilled, highly productive economy and that’s where we’re going.”
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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