Business: Supply Chains

Treasury written question – answered on 4th April 2022.

Alert me about debates like this

Photo of Matt Vickers Matt Vickers Conservative, Stockton South

To ask the Chancellor of the Exchequer, what fiscal steps he plans to take to help UK businesses maintain effective supply chains.

Photo of Helen Whately Helen Whately The Exchequer Secretary

Many economies around the world are currently facing supply chain disruptions. This is due to a combination of global factors, including the strong recovery from the pandemic and the war in Ukraine.

The Government understands the pressure that this is placing on UK businesses, and we are in regular contact with business groups and suppliers about the challenges they are facing.

Where problems are global in nature, we will work with international partners to maintain effective supply chains and build greater resilience into trade networks. And in extraordinary circumstances, Government has helped domestically. For example, we have supported the haulage industry through HGV driver shortages and eased pressures on the movement of goods into and out of the UK. This package of support includes £32.5m support for improved lorry park facilities, to aid with retention in the sector.

However, we should also recognise that Government intervention is often not the solution to supply chain issues. Where supply faces constraints government spending can merely add further to price pressures rather than resolve then. Furthermore, businesses should not be perpetually reliant on taxpayer support and should adjust their business models in response to market pressures. For example, in the case of HGV drivers, better pay and conditions are required in the long-term and the private sector has a role to deliver this.

Does this answer the above question?

Yes1 person thinks so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.