What shortages and supply troubles reveal about Boris Johnson’s government
Few things spook a prime minister like
a petrol crisis. In his autobiography, Tony Blair recalls one in 2000 caused by fuel
protests. The Downing Street machine was
moving at a glacial pace. Decisive orders
were needed. “I would like the army to
come in and if necessary drive your tankers,” he recalls saying, “and if they meet
with any violence from protesters, I want
you the police to deal with them very firmly, and if not, to let the army take care of
them. They’re very good at it.”
Where Mr Blair had protesters to rage
at, Boris Johnson has had to make do with
gummedup global supply chains. The Petrol Retailers Association, a lobby group,
says that fuel is now returning to the
pumps. But for the past week many Britons
have been unable to fill their cars, and others have wasted hours queuing to do so. Although the crisis is in large part the result
of temporary forces beyond ministerial
control, it also highlights enduring problems with both British logistics and Mr
Johnson’s government. Global supply chains have been under
stress for the past 18 months, thanks to
lumpy consumption patterns caused by covid19. An ageing workforce and grim
conditions have created shortages of lorry
drivers across Europe. Both problems are,
though, especially acute in Britain. Supply chains have been stressed by Brexitrelated
formfilling. Tax tweaks have cut takehome pay for some lorry drivers, and the
number from the eu has fallen by more
than 12,000, or 10% of the total.
Throughout, ministers have insisted there is no shortage of petrol. The fact that
rumours, which emerged from talks over
driver shortages, led to a run on the pumps
reflects two issues. One is a frazzled public.
Recent weeks have seen surging gas prices
and empty supermarket shelves. In the
words of Dominic Cummings, the prime
minister’s former adviser, “The stooges
who trusted No 10, and those who trusted
the stooges, now have no petrol.”
The other is the government’s abject
communication. Studying past fuel crises,
Eben Upton and William Nuttall of the University of Cambridge find that “unbiased propagation of information about inventory levels can help to reassure consumers”. On September 24th Nadine Dorries, the culture secretary, tweeted, in a
typical message: “There is no fuel shortage.
I repeat, THERE IS NO FUEL SHORTAGE”,
followed by a redcar emoji.
The government has propagated precious little information about petrol
stocks. Its solutions have twinned the
technocratic with the desperate. Migrant flows used to respond to the state of the economy, but under the postBrexit immigration regime they have responded to
ministerial diktat. The government spent
the summer resisting pleas to allow in
more workers, insisting that firms should
improve conditions and raise wages instead. Data from Indeed, a joblistings
website, suggests they did. Pay in advertisements for heavygoods vehicle (hgv)
drivers increased by 12.8% from February
to August, compared with 1% for all jobs.
Still, problems persisted. Under the
new immigration regime, drivers count as “lowskilled workers”, and are not welcome in Britain. In an attempt to reduce
the pressure, on September 26th the government announced 5,500 visas for
hgv
drivers, as well as 5,500 for poultry workers
(another industry suffering shortages). Although the extra workers will be welcome,
they will not make an enormous difference given the small numbers involved. The
visas expire on Christmas Eve.
Other measures kicked in more quickly.
Before leaving the eu, officials drew up a
“National Emergency Plan for Fuel”, which offers ministers a menu of escalating op tions.
In July Grant Shapps, the transport secretary, increased the number of hours
lorry drivers were allowed to work.On September 27th the government activated
the “Downstream Oil Protocol”, which exempts firms
from competition rules, allowing them to share data on shortages. Combined with
the fact that there is only so much petrol that can fit
in a car’s fuel tank, this was enough to get the
stuff flowing
once more. The army was put on standby, with 150 soldiers preparing to drive
tankers, but as The Economist wentto press it had not been called into action.
Given the difficult circumstances, it may not be
the last time it goes on alert this winter. Indeed, Mr Johnson highlighted the
possibility of problems until “Christmas and beyond”. There is, however, some
reassurance for the government as it faces up to the possibility of festive
disruptions. Despite a crisis that was partly created by its flagship policy and was mismanaged by ministers, it is escaping
the blame. A poll by YouGov asked who was at fault. Some 23% said the
government. Nearly half said the media.