Furious business chiefs accuse PM of 'buck-passing' as he shrugs off supply chain chaos saying it is 'not my job' to fix them - and DISMISSES inflation fears despite Cabinet alarm over 'complacency' about soaring prices
- Boris Johnson has been giving a series of interviews from the Conservative Party conference in Manchester
- The PM blamed the wave of supply chain chaos on Covid and Britain changing from a 'low wage' economy
- He insisted the disruption was like a 'giant waking' up and 'creaking' after the pandemic stalled activity
- Mr Johnson said 'not the job of government to come in and fix every problem' amid fears of Christmas misery
- He admitted that just 127 foreign lorry drivers have applied for emergency visas under government scheme
How inflation threatens families and the public finances
Headline CPI inflation has been spiking, reaching 3.2 per cent in August, and is expected to reach double the Bank of England's 2 per cent target
Inflation has long been seen as one of the biggest threats to economies.
In extreme examples, it has spiralled out of control and sparked panic.
The German Weimar Republic effectively collapsed after the value of the mark went from around 90 marks to the US dollar in 1921 to 7,400 marks to the dollar in 1921.
In Zimbabwe between 2008 and 2009 the monthly inflation rate was estimated to have reached a mind-boggling 79.6billion per cent.
Although inflation has faded in the minds of Britons who have become used to ultra-low interest rates and stable prices, it caused chaos in the 1970s.
Deregulation of the mortgage market, the emergence of credit cards and an overheating economy drove the rate to an eye-watering 25 per cent in 1975.
People would rush to buy goods with their wages after pay-day, as the costs were rising so quickly.
Strikes erupted as there was pressure for pay packets to keep pace with prices.
Unemployment rose as the economy tipped into recession, and the government had to pump up interest rates in a bid to bolster the pound and control the surge.
That meant mortgage interest payments spiked into double digits.
And as a result servicing the national debt became a serious problem.
The UK's headline CPI inflation rate hit 3.2 per cent in August, its highest level in nearly a decade and way above the Bank of England's 2 per cent target.
There was a record jump from July, but even though the Bank now expects the rate to peak above 4 per cent it still believes the spike will be 'transient'.
Boris Johnson defiantly dismissed fears over spiking inflation and supply chain chaos today, saying the UK is switching to a 'new approach' and it is not his job to fix all the problems for business.
In interviews at Tory conference that will spark fresh fury from industry, the PM denied that the country is in 'crisis' comparing the disruption to a 'giant waking up' and 'creaking' after the pandemic.
Despite Cabinet ministers telling MailOnline they were concerned about 'complacency' about inflation, now on track to be double the Bank of England's target, Mr Johnson said he was not 'worried' about it running out of control.
He also pushed the responsibility for solving the problems back on the private sector, insisting it is 'not the job of government to come in and fix every problem'.
Referencing Margaret Thatcher's 1980s dictum - which ironically she used to stress the need to control inflation - Mr Johnson said: 'In a famous phrase, there is no alternative. There is no alternative.
'The UK has got to - and we can - do much, much better by becoming a higher-wage, higher-productivity economy.'
But he admitted that Christmas might only be better from a 'low base' amid fears of ongoing shortages - after it was effectively cancelled during the pandemic last year.
And he conceded that the government's efforts to bring in more lorry drivers from abroad are having limited success, with just 127 having applied for emergency visas.
The uncompromising line from Mr Johnson came as new figures showed pump prices have hit 136.10p per litre, the highest level since September 2013
Tensions have been rising between ministers and business over the crisis, with Foreign Secretary Liz Truss warning that firms will be to blame if the festive season is blighted by shortages and price rises.
One Cabinet source told the Telegraph that companies have been 'drunk on cheap labour' and failed to plan for the changes.
In other developments at the Tory conference builds towards the leaders' speech:
- Mr Johnson has branded Insulate Britain protesters 'irresponsible crusties' as Priti Patel unveiled tougher measures to stop them blocking roads;
- The PM called for people to return to offices warning otherwise they will be 'gossiped' about and miss out on 'stimulus' and 'competition';
- Mr Johnson clashed bitterly with the BBC's Nick Robinson in his first Today programme interview in two years;
- The premier refused to rule out calling an early election but insisted he is focused 'on the job at hand';
- The number of offenders forced to wear electronic tags will double under a major initiative from Dominic Raab;
In a round of interviews at the Tory conference in Manchester, the PM insisted the country is at a 'turning point' as businesses are weaned off cheap labour after Brexit
Mr Johnson tried out a bike as he toured stands at Tory conference in Manchester this morning
The premier also tried out a hydrogen car as he was shown around the stands at the conference centre today
Boris Johnson compared the current disruption to a 'giant waking up', saying it was what you would expect of the global economy recovering and 'sucking in demand'
Mr Johnson's broadcast round included his first interview on BBC Radio 4's Today programme in two years.
And it quickly descended into acrimony, with presenter Nick Robinson demanding that the PM 'stop talking' as he blustered through responses to questions.
A clearly stung Mr Johnson repeatedly referred to the rebuke, asking why he was there if he was not meant to be talking.
In another wave of interviews this afternoon, Mr Johnson said he is 'not worried' about staffing shortages and rising energy prices and dismissed concerns about rising inflation.
He told BBC News in Manchester: 'We're moving to a new approach, and I do not want to go back to what I think is a tired old failed approach, which people voted against twice in 2016 and in 2019.
'Some of the people who would be writing to me, may be worried about this, but I'm not worried about this because, actually, I think it would be good for their businesses to invest in people.'
Asked about inflation having the possibility to eat up wage rises, he said: 'Actually I think that people have been worried about inflation for a long time and it hasn't materialised.'
Pressed if he is not worried about inflation, he said: 'I believe that supply will be encouraged, and we want to encourage people to invest in.'
Mr Johnson told GB News: 'It's not the job of government to come in and try and fix every problem in business and industry.
'We have fantastic supply chains in this country, fantastic logistics, there is a problem of demand.'
He said in the haulage industry has depended on low wage workers migrating to the UK to work under tough conditions.
Speaking on BBC Breakfast, the premier said: 'The supply chain problem is caused very largely by the strength of the economic recovery.
'What you will see is brilliant logistic experts in our supermarket chains, in our food processing industry, getting to grips with it, finding the staff that they need, we will help them in any way that we can.
'But the shortage is global.'
He went on: 'What you can't do is go back to the old, failed model where you mainline low-wage, low-skilled labour – very often very hard-working, brave, wonderful people – who come in, working in conditions that frankly are pretty tough and we shouldn't be going back to that.'
That had led to a situation where there was not investment in the industry and 'people had to urinate in bushes' because of the lack of facilities for drivers, he said.
Mr Johnson told LBC: 'I sympathise very much with the frustrations of people who have been queueing for petrol. I really, really do.
'I understand how infuriating it is when you can't get petrol at the pumps, but I must repeat that this has overwhelmingly been a problem of demand, not supply.'
He added: 'What I am getting at is that the tanker drivers, the lorry drivers, they have got more than the average week's supply to the pumps for the last few days, and that is the situation.'
He also said: 'I think even the Petrol Retailers Association have been saying that the situation has been improving markedly.
'What you are seeing is the UK economy coming back into life, really sort of stretching its legs, starting to move again, and of course there's been a bit of creaking here and there because we haven't had such activity in a long time.'
Mr Johnson played down fears over spiralling inflation, saying the tackling underlying productivity problems was the way to 'fix' rising prices.
He said the market would address current demand-led shortages and the shift away from fossil fuels would have a long-term effect on energy bills.
'This Government is going to fix it for the long-term by making investments in renewable power that we can rely on in this country,' he said.
Mr Johnson added: 'This Government is doing the difficult, long-term things. We got Brexit done, which was a very difficult thing to do, and we are now going to address the big, underlying issues that face the UK: long-term lack of productivity, long-term lack of investment in energy and infrastructure.
'We are going to fix that.
'That will have a big downward pressure on costs and that is the way to tackle inflation.'
He also defended ending the £20 a week boost to Universal Credit, arguing the taxpayer should not subsidise low wages.
'I understand that people feel times are difficult at the moment because we have got an economy that's coming out of a very tough period with the Covid pandemic and it's growing strongly now,' he said.
'We've got the fastest economic growth in the G7.'
However, Mr Johnson's relaxed attitude on inflation is not shared by all his top team.
One Cabinet minister told MailOnline the Bank of England is 'complacent' on inflation.
'They should be unwinding quantitative easing now, before acting on interest rates. They could try reducing it a back and gauge the reaction,' they said.
'It might push the pound up, but that is not a bad thing as the pound has been falling and it would help reduce inflation.'
Despite the PM's stance, there is increasing frustration from many sectors.
Ali Capper, executive chair of the trade body British Apples and Pears, who also runs a hop and fruit farm.
'Like all British apple and pear growers, staff are short this year. On our own farm we're running 10 to 15 per cent short of the numbers we need, but I am speaking to farms that are 30 or 40 per cent short of staff.
'It's a combination - Brexit, Covid… but really what we need are sensible policies put in place. We have the seasonal workers scheme for our sector. This year it's bringing 30,000 workers. There is no doubt that needs to be expanded, probably doubled, and we need the number of permanent operators increased as well.'
Mark Reynolds, chief executive of construction company Mace said: 'It's constantly a challenge (to get workers) and it's not helped through the effects of Brexit and the current fuel situation, getting people to work, is making things more difficult.
'I think we pay pretty well as a sector – the average salary for a construction professional in the UK is in excess £44,000 a year and in London is excess of £50,000. So I think the industry pays pretty well compared to most and has great opportunities.'
Gary Parsons, of HR consultancy Talk Staff, said: 'Great leaders take the blame and pass on the credit, not point the finger and ignore the support being asked for.
'SMEs account for 99.9 per cent of businesses in the UK and with the right support, government leadership and industry interventions they could be the answer to all of Boris Johnson's problems.'
As the Conservative gathering enters its final stages, Home Secretary Priti Patel will today announce plans to hit eco-warriors with a new type of Asbo in an attempt to halt their motorway protests.
Justice Secretary Dominic has unveiled a deal to force criminals in 'chain gangs' to clear rubbish from waterways.
Mr Johnson said Insulate Britain protesters are 'irresponsible crusties' who have been 'doing considerable damage to the economy'.
'There are some people who call those individuals legitimate protesters,' he said.
'They are not. I think they are irresponsible crusties who are basically trying to stop people going about their day's work and doing considerable damage to the economy.
'That is why we have taken the powers and why Priti Patel is doing the right thing to bring in powers so they can get six months or an unlimited fine.'
Ms Patel has confirmed plans for tougher powers against the likes of Insulate Britain and Extinction Rebellion in her conference speech.
Protesters from Insulate Britain have blocked major roads including the M25 and the M4 in recent weeks.
A court injunction was taken out to prevent their blockade of the M25, but demonstrations have continued, most recently on roads across London on Monday.
A hearing on the original injunction, granted to National Highways on September 22, will take place at the High Court in central London later on Tuesday.
Ms Patel announced an increase in the maximum penalties for disrupting a motorway, while also criminalising interference with major roads, railways and the press.
The Home Office will also give the police and courts new powers to deal with the 'small minority of offenders' who are 'intent' on travelling around the country with the aim of 'causing disruption and misery across our communities'.
Ms Patel has unveiled a £15million expansion in testing suspects for drugs on arrest, and is expected to say that 'unconscionable crimes and acts of violence against women and girls have no place in our society'.
Mr Johnson is expected to use his Tory conference speech tomorrow to encourage a return to the workplace.
'He believes very strongly in the value of face-to-face working,' a senior source told the Daily Mail. 'It is critical for the training and development of young people. How can you learn a new job on Zoom?'
Mr Johnson launched an ill-fated attempt to get office staff back to their desks last year, which was wrecked by the emergence of the second wave of Covid.
Scientific advisers have pressed him not to repeat the exercise this year because working from home is one of the most effective ways of slowing the spread of the virus.
Instead the Government left it up to employers to encourage a 'gradual return to the workplace'.
But a second Tory source said ministers were now hopeful they would not have to issue another work from home order this winter.
'You can never rule anything out with Covid,' the source said. 'But we are now in early October and hospitalisations are still running at manageable levels.
'We are not at the point of anyone thinking about Plan B.
'Even if we get to that point, it would start with things that cause relatively little disruption, such as mandatory masks and Covid certification.'
Mr Johnson climbed on a digger as he carried out his whistlestop tour of the conference stands this morning
Dominic Raab has unveiled an initiative to double the number of offenders forced to wear electronic tags
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2021-10-05 15:27:52Z
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