Driving tested: George Osborne reacts to a looming crisis in the freight industry

Delivering Christmas 2014 was a trying time for many freight and logistics operators across the UK; despite the economy at last seeing an up-turn with reported significant growth, which businesses had been waiting a long time for,  there was a genuine concern over who was going to deliver the goods.

There has been a growing demand for professional HGV drivers as the economy picks up and increasing numbers of people take advantage of home deliveries.  However, an ageing workforce and the costs associated with obtaining an HGV licence means there is now a shortfall of around 60,000 trained drivers. 

The problem became more significant last year following the deadline for completion of the Driver Certificate of Professional Competence (DCPC), as all HGV drivers in scope of the regulation were required to have completed 35 hours approved training, and be in possession of a Driver Qualification Card (DQC) issued by DVLA.  Whilst many transport operators paid for the DCPC training on behalf of their permanent employees, the concern was that ‘freelance’ agency drivers would not all have done so.  

In the past fleet managers have turned to their employment agencies to supply temporary drivers to meet the peak demand periods such as Christmas, but surveys of agency driver availability suggested that 2014 would be different, that there simply wouldn’t be enough drivers to deliver the goods as older, more experienced drivers were choosing not to complete DCPC at this late stage of their career and instead were looking to leave the industry or move on to other driving work which didn’t require the training. 

In the event, Christmas was delivered if not without hitch, then certainly without major catastrophe. But it is clear that the driver shortage is not only here to stay, but according to available data, looks set to get worse.

Chancellor George Osborne is sufficiently concerned about the impact this could have on the wider economy that he recently called a roundtable meeting between the Treasury, FTA and other key stakeholders.

Following the meeting FTA said: “The Treasury got the clear message that the road transport industry is now facing an unprecedented situation which needs urgent government intervention and that an immediate cash injection is vital if the impact on the UK economy is to be minimised.  Grants to road transport operators would have a fast and beneficial effect on the number of new drivers trained and would help fill the current 60,000 driver shortfall.

“Industry set out a framework for how these systems would work.  They would be nationwide, straightforward, accessible and time-limited. The meeting also discussed how a student loan-type arrangement could have a role in the long term – the Chancellor has an opportunity in his Budget to reverse a damaging driver shortage and help drive positive change in the industry.”

It is clear however, that this problem requires action not only from Government, but from industry itself. In response FTA is holding an Industry Summit – ‘Solving the driver Crisis’ - at the Ricoh Arena, Coventry on 12 March 2015.  The event will bring together more than 650 politicians, government officials, professional HR advisors, union representatives and experienced operators intent on identifying solutions. This problem is too big and too important to be left to any one party or any one measure to solve.