Lorry driver shortage 'leaving shops and caterers 30% down on goods'

The shortage of haulage drivers is leaving the north of Scotland 30% down in volume of goods reaching shops and caterers, say their suppliers.

There is also a 15% shortfall in goods getting to the central belt, according to Scottish Wholesale Association.

Its chief executive, Colin Smith, told MSPs that consumers should no longer assume that everything will be available in shops all the time.

The shortfall in drivers is estimated at 10% - down from 18% in the autumn.

Holyrood's economy and fair work committee heard the shortage is not as acute as in England.

But there is a knock-on effect in Scotland when imported product is coming through warehouses in England.

Mr Smith said that was due to staff being redeployed into driving - leaving staffing gaps in warehouses.

A further result is that members of the wholesaler organisation are holding more stock, and in some cases up to three times more than usual.

That brings extra cost, and Mr Smith said cash flow is a growing problem, when allied to the higher levels of debt taken on by companies during the pandemic.

He added that major food producers, in facing constraints on haulage, are focussing their supplies on bigger retail chains, which they can do more efficiently, and that leaves smaller wholesalers and retailers at a disadvantage in securing supplies.

There was a warning to the public sector, including catering for schools and care homes, that costs will continue to rise into the new year, with price increases of at least 5%.

And where sourcing food closer to home can be done, said Mr Smith, it is at higher cost.

In the same parliamentary hearing, Ewan MacDonald-Russell of the Scottish Retail Consortium told MSPs that retailers were making special efforts to ensure they get stock in place for Christmas.

"Retailers have to make Christmas work, and that is coming through in prices," he said. "We're seeing month-on-month increases in cost being passed on to consumers."

He said everything for a traditional Christmas meal would be available in shops, but with a lower range of options.

John Lee, head of policy at the Scottish Grocers Federation, said there was a shortage of staff across the supply chain.

"We're worrying about cost price inflation," he said.

"There are real concerns about rising interest rates. The Centre For Economic Research is estimating that households will be spending £1,700 more on consumer costs next year.

"We're beginning to see concerns about the impact of that and how it might lesson consumer demand.

"Brexit, pandemic, labour shortages are all major challenges, but this is the economic restructuring of the UK, and there's no way Scotland can be immune from that."

All three men appearing before MSPs called for continued business rates reductions for the retail sector, with Mr Smith calling for it to be extended to wholesalers.