Connect with us

Published

on

If the trainee truckers the haulage industry so desperately needs could change direction as fast and frequently as government ministers they would sail through the HGV test.

The latest U-turn, executed to address the supply chain crisis, comes from the Department for Transport, and even by the standards of recent weeks it is a screecher.

To try and increase deliveries the government is to waive rules limiting the number of stops European Union drivers can make while in the UK.

Please use Chrome browser for a more accessible video player

Is the supply crisis global?

The regulations, known as “cabotage”, currently limit international drivers to two deliveries in the UK, including the one they enter the country with, in a seven day period.

That’s one fewer than EU drivers can make while working inside the bloc, but the government’s plan is for them to be allowed to make unlimited stops for 14 days, letting them deliver and drop as they see fit.

It comes after the government granted 5,000 short-term visas for British hauliers to hire EU drivers, a move that so far has attracted only a trickle of candidates.

A further 800 seasonal worker places have been agreed for butchers to clear the backlog of pigs on farms.

More from Business

The intention is to address the chronic driver shortage that is affecting every link in the supply chain, from container ports that can’t clear goods to supermarkets trying to fill shelves.

Some in the logistics industry think the cabotage change may make a marginal difference, but the real impact they say will be to disadvantage British drivers and companies.

Please use Chrome browser for a more accessible video player

Why are there supply shortages in UK?

As well as the removal of cabotage restrictions European drivers also face no export checks on arrival in the UK – the government has delayed them until next year – unlike their British counterparts who face full Brexit red tape heading in the other direction.

Coming just days after the prime minister said business could no longer “pull the lever marked uncontrolled immigration”, and should pay higher wages to British workers, the Road Haulage Association (RHA) says it’s closer to “sabotage than cabotage”.

“It’s allowing foreign hauliers who charge low rates, and the lorry drivers who get very small pay packets, to come in and undercut the work that could be done within the UK by British haulage firms,” said Rod McKenzie of the RHA.

It’s estimated around 4-5% of deliveries were made by cabotage before Brexit, a figure that has decreased as the number of European drivers coming to the UK has dried up.

Follow the Daily podcast on Apple Podcasts, Google Podcasts, Spotify, Spreaker

Shane Brennan of the Cold Chain Federation estimates the issue is not even in the top-ten reasons EU drivers are staying away.

“It’s fine as far as it goes and we need all the help we can get, but it’s not going to make a massive difference,” he says.

“The main reason drivers are staying away isn’t cabotage, it’s because of COVID, because of the working conditions, and because there is easier work to be done on the continent.

“You might be able to make a little bit more money by doing a drop from Doncaster to Leeds before you head home, but you need a load to return with, and those have dried up massively because of export checks at the border.

“Why would you risk being stuck at Calais if you don’t need to?

“At the moment it’s as easy as you like to trade with the UK if you are European, and as easy as you like to come in, as long as you don’t work for a British company.”

Continue Reading

Business

Eco-tycoon Vince weighs sale of solar energy project

Published

on

By

Eco-tycoon Vince weighs sale of solar energy project

The energy group founded by Dale Vince, the eco-tycoon, is kicking off a hunt for investors in a solar park which is expected to become one of Britain’s biggest renewable energy projects.

Sky News understands that Ecotricity, Mr Vince’s company, has hired KPMG to explore talks with prospective investors or buyers for the project at Heckington Fen in Lincolnshire.

The development was approved by Ed Miliband, the energy secretary, earlier this year, and when completed it is expected to generate roughly 600MW of solar power.

It has been designated a Nationally Significant Infrastructure Project by the government.

Heckington Fen will also provide 400MW of battery storage capacity.

According to documents circulated to potential bidders, Ecotricity is prioritising the sale of 100% of the project, but is open to retaining a minority stake.

The company wants to complete a deal during the third quarter of the year.

More from Money

Responding to an enquiry from Sky News, Mr Vince said: “Heckington Fen is a fabulous opportunity; it’s also a massive one, possibly the biggest onshore renewable initiative in Britain.

“The project is shovel-ready with a grid connection in 2028 – something which is increasingly hard to find these days.

“Whilst this is a great project which is going to go ahead, the sums of money required to build this alone in a short timeframe, means we’re looking for investors or partners to help make this happen.”

Continue Reading

Business

Sir Keir Starmer pledges to protect UK companies from Trump tariff ‘storm’

Published

on

By

Sir Keir Starmer pledges to protect UK companies from Trump tariff 'storm'

Sir Keir Starmer has said his government stands ready to use industrial policy to “shelter British business from the storm” after Donald Trump’s new 10% tariff kicked in.

The UK was among a number of countries hit with the lowest import duty rate following the president’s announcement on 2 April – which he called ‘Liberation Day’, while other nations, such as Vietnam, Cambodia and China face much higher US levies.

But a global trade war will hurt the UK’s open economy.

The prime minister said “these new times demand a new mentality”, after the 10% tax on British imports into America came into force on Saturday. A 25% US levy on all foreign car imports was introduced on Thursday.

It comes as Jaguar Land Rover announced it would “pause” shipments to the US for a month, as firms grapple with the new taxes.

On Saturday, the car manufacturer said it was working to “address the new trading terms” and was looking to “develop our mid to longer-term plans”.

Please use Chrome browser for a more accessible video player

Jobs fears as Jaguar halts shipments

Referring to the tariffs, Sir Keir said “the immediate priority is to keep calm and fight for the best deal”.

Writing in The Sunday Telegraph, he said that in the coming days “we will turbocharge plans that will improve our domestic competitiveness”, adding: “We stand ready to use industrial policy to help shelter British business from the storm.”

It is believed a number of announcements could be made soon as ministers look to encourage growth.

NI contribution rate for employers goes up

From Sunday, the rate of employer NICs (national insurance contributions) increased from 13.8% to 15%.

At the same time, firms will also pay more because the government lowered the salary threshold at which companies start paying NICs from £9,100 to £5,000.

Also, the FTSE 100 of leading UK companies had its worst day of trading since the start of the pandemic on Friday, with banks among some of the firms to suffer the sharpest losses.

Sir Keir said: “This week, the government will do everything necessary to protect Britain’s national interest. Because when global economic sands are shifting, our laser focus on delivering for Britain will not. And these new times demand a new mentality.”

Please use Chrome browser for a more accessible video player

Trump defiant despite markets

UK spared highest tariff rates

Some of the highest rates have been applied to “worst offender” countries including some in Southeast Asia. Imports from Cambodia will be subject to a 49% tariff, while those from Vietnam will face a 46% rate. Chinese goods will be hit with a 34% tariff.

Imports from France will have a 20% tariff, the rate which has been set for European Union nations. These will come into effect on 9 April.

Read more:
Red wall on Wall Street – but Trump undeterred
How will UK respond to Trump’s tariffs?

Sir Keir has been speaking to foreign leaders on the phone over the weekend, including French President Emmanuel Macron, Italian Prime Minister Giorgia Meloni and Australian Prime Minister Anthony Albanese, to discuss the tariff changes.

A Downing Street spokesperson said of the conversation between Sir Keir and Mr Macron: “They agreed that a trade war was in nobody’s interests but nothing should be off the table and that it was important to keep business updated on developments.

“The prime minister and president also shared their concerns about the global economic and security impact, particularly in Southeast Asia.”

👉 Follow Trump 100 on your podcast app 👈

Trump’s warning

Mr Trump has warned Americans the tariffs “won’t be easy”, but urged them to “hang tough”.

In a post on his Truth Social platform, he said: “We are bringing back jobs and businesses like never before.

“Already, more than FIVE TRILLION DOLLARS OF INVESTMENT, and rising fast!

“THIS IS AN ECONOMIC REVOLUTION, AND WE WILL WIN. HANG TOUGH, it won’t be easy, but the end result will be historic.”

Continue Reading

Business

Santander UK lines up ex-Treasury chief Scholar as new chair

Published

on

By

Santander UK lines up ex-Treasury chief Scholar as new chair

Sir Tom Scholar, the former top Treasury civil servant sacked by Liz Truss during her premiership, is being lined up as the next chairman of Santander UK, Britain’s fifth-biggest high street bank.

Sky News has learnt that Sir Tom, who played a pivotal role in the UK’s response to the 2008 financial crisis, is the leading candidate to replace William Vereker.

The appointment, which is subject to regulatory approval, could be announced later in the spring, according to insiders.

Sir Tom’s prospective recruitment comes amid a period of intense speculation about the future of Santander UK, which bulked up rapidly during the banking crisis by absorbing Alliance & Leicester and Bradford & Bingley.

The Spanish banking giant entered the British retail market in 2004 when it bought Abbey National, setting in motion a chain of dealmaking which would result in it becoming a serious challenger to Barclays, Lloyds Banking Group and NatWest Group.

If confirmed in the role, Sir Tom will follow a pattern of former senior public officials in taking on the chairmanship of Santander UK.

The post has been held in the past by Baroness Vadera, a Treasury minister during the 2008 meltdown, and Lord Burns, the former Treasury permanent secretary.

Sir Tom also held that latter role until his ousting during the shortlived Truss government, which led to him receiving a payoff of more than £350,000.

In addition to his position during the banking crisis, he was instrumental in devising the COVID-19 furlough scheme, which protected millions of private sector jobs during the series of lockdowns imposed on the British public.

He was widely respected among international banking regulators and finance ministers, and his sacking by Ms Truss sparked fury among senior civil servants.

Since leaving the Treasury, he has been appointed as chair of the European operations of Nomura, the Japanese bank.

At Santander UK, he will work closely with Mike Regnier, the former building society boss who has been its chief executive since 2022.

In recent months, there has been growing speculation that Santander UK’s parent is open to a sale of the business amid frustration about the scope and burden of British banking regulation.

Both Barclays and NatWest have been sounded out about a potential merger of their UK retail businesses with that of Santander UK, although formal talks have not progressed to a meaningful stage.

Ana Botin, Santander’s group executive chair, has appeared to publicly rule out a disposal, saying that the UK remains a “core market” for the group.

An attractively priced offer could yet gain Ms Botin’s attention, according to people close to the earlier talks.

One insider said, however, that Sir Tom’s recruitment was likely to dampen further speculation about a possible sale of the British business.

Shares in the Madrid-listed parent company, Banco Santander, have performed strongly in recent months, but fell by more than 8% on Friday as investors digested the fallout from President Donald Trump’s global tariffs blitz.

The company now has a market capitalisation of about €83.25bn (£70.7bn).

City sources said the search for Mr Vereker’s successor had been led by Heidrick & Struggles, the headhunter, in conjunction with Baroness Morgan, the former cabinet minister who sits on Santander UK’s board as its senior independent director.

This weekend, Santander UK said in a statement issued to Sky News: “Santander UK is conducting a thorough appointment process.

“The new chair will be announced once that process has concluded, including having obtained board and regulatory approval.”

Continue Reading

Trending