Energy shortages to make existing crises worse warn experts

Members of the cross-party, cross-industry UK Trade and Commission have called on the government to act quickly to address ongoing crises in the UK labour market and supply chain before they are made significantly worse by current global energy shortages.

The UK was already experiencing acute supply shortages including food products and important medical supplies. Many industry experts have attributed the issues to labour shortages, logistical problems and increased administrative burdens from the government’s Brexit deal.

The current global energy shortage threatens to exacerbate these issues with it’s impact on CO₂ production already affecting the production and transport of food. This week, leading food manufacturers warned that the UK was days away from shortages of packaging and meat before the government announced they would provide temporary support.

However, members of the UK Trade and Business Commission have today warned that other parts of the supply chain could be impacted by the energy crisis and called on the government to act now to address the pre-existing problems that are within its power to fix.

Geoff Mackey, who sits on the UK Trade and Business Commission and who is Corporate Affairs & Sustainability Director at BASF, the largest chemical producer in the world said,

“Unlike other countries, UK supply chains were already under intense pressure before the energy crisis started to bite, from lorry driver shortages, a recruitment crisis and mountains of new bureaucracy from Brexit.

"The current CO₂ situation is another example of how fragile supply chains are. It will not be the last."

They also warned that while Brexit may not have caused energy shortages, the UK’s position outside the common market means British citizens are more likely to feel the pain from global supply issues.

David Henig, trade advisor to the UK Trade and Business Commission said,

“Brexit hasn't caused the energy shortage, but the UK is now less resilient in withstanding shocks without close neighbourhood relations.”

This week the UK Trade and Business Commission published a new report including recommendations on how the government could begin to address existing supply issues. 

Caroline Lucas MP who also sits on the Commission said,

““People are facing a double hit on their finances, with less money coming in because of tax hikes and cuts to universal credit, and more going out because of the soaring costs from the gas crisis and Brexit supply issues.  

“Yet again, the Government’s mismanagement has left the UK woefully ill-prepared.  It needs to implement the recommendations put forward by the UK Trade and Business Commission and urgently address the pre-existing problems which are behind these shocks.”