The 70s are in fashion again. But in the United Kingdom, that decade does not evoke disco music or the transition, but rather runaway inflation, above 20%, which toppled several governments and led to a decade of harsh adjustments. And the British hospitality industry has been the first to fire the red alert. In a statement at the UK Parliament’s Trade and Energy committee, the president of the country’s Food and Drink Federation (FDF), Ian Wright, warned that prices are skyrocketing “by 16 and 18% “for hoteliers. “It is a terrifying situation,” he summarized.
Wright explained his bad memories of “inflation at 27%” during the Labor government of James Callaghan (1976-1979), and made it clear that the situation could go in that direction if there are no changes soon. “Hospitality is the step before retail,” and the trends seen in the former will reach the latter in a short time, he explained.
“We’re seeing extraordinary scenes. In some supermarkets you used to see fresh seasonal food. Now you see big deodorant displays. It’s not that the nation has suddenly started to smell bad, it’s that it’s the only thing they have in sufficient quantities, so They put it on the shelves to make them look full, “he explained.
The cause, in his opinion, is a mixture of Brexit and the pandemic, which has shaken the job market. “In the last year, 1.4 million European workers have returned to their homes”, despite having an indefinite residence permit for having moved to the United Kingdom before leaving the EU. To this is added more than half a million people who have taken advantage of the pandemic to retire or return to the educational system, and have left the universe of active workers.
For Wright, one of the main causes of the situation is the resistance of the Government of Boris Johnson to understand and accept the reality caused by leaving the EU. “We need to understand the numbers, and I don’t think the government understands them. Until we know what the numbers are, we can’t find the solutions,” he said.
“Six months ago, our partners thought this was going to be temporary. Now, all companies expect inflation to extend into 2023 and probably 2024.”
A similar view is held by Duncan Buchanan of the Road Transport Association, who blamed the situation on the “toxicity” of the Brexit debate and the “complacency” of the government, which refuses to accept the consequences of the breakdown, even when its effects are being clearly felt. And their solutions are therefore useless. Asked about the 5,000 temporary visa program for European truckers, which has attracted barely a hundred people, Buchanan summed it up like this: “If you were to design a visa program specifically to fail, it would be very similar” to the one approved by the Executive.
For his part, John Allan, president of the supermarket chain Tesco, made it clear that there will be no general shortage of food at Christmas, and that there is no need to make mass purchases in panic, but admitted that the price increase was inevitable. “In food, we are seeing increases of between 5% and 10%, which is much more than what we have had in recent years.”
Wright warned that members of the FDF have been absorbing the cost increase, but that very soon they will have to pass it on to prices. “Six months ago, our partners thought this was going to be temporary. Now, all the companies I know expect inflation to extend into 2023 and probably 2024.” And he made clear the effects it would have on society: “Inflation is the greatest punishment on poor people, because it discriminates against them. If it is not solved, Johnson’s agenda of improving the standard of living of disadvantaged areas will be destroyed. And the last time it took us 15 years to recover “from inflation like this.
Back to the 70s? When the energy crisis led the UK to a three-day week to ration electricity
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