The publisher has also decided that from September the percentage terms that retailers receive for handling the publication on weekdays and Saturdays will be reduced to 20 per cent. The margin for handling the Sunday edition will be maintained at 20.5 per cent.

Responding to the news, the Fed National President Narinder Randhawa said: “While the cover price increases are welcome, we are disappointed that, once again, the Telegraph is hitting retailers in their pockets with yet another cut to our percentage trading terms.

“Despite repeated conversations with the Telegraph, we are equally dismayed that any ‘improvements’ to our margin payments are being delayed for six months.”

Mr Randhawa added: “Only last month, and at the Fed’s newspaper summit in London, we listened as the Telegraph’s CEO Chris Taylor insisted that the printed word had a bright future as he updated retailers, news wholesaler and his publishing colleagues on its subscription strategy and the importance of our support in achieving that.

“This latest decision to accompany these price increases with a cut in our terms and deferred payment is a bitter blow – especially as they come at a time when our costs are rocketing, and we have no way of passing these increased costs on to our customers.

“This annual cycle of terms cuts and deferred payment needs to stop.  It leaves a sour taste in retailers’ mouths.  We would politely ask Telegraph Media Group to reconsider on both the terms and deferred payment fronts.”

Mr Randhawa continued: “Decisions like these leave me to question my commitment to the news category.  It is time that publishers like TMG understand the precarious financial position that moves such as these make to our members.  It is also time that the Telegraph looks to other categories in our members’ stores that work with us in true partnership.”

The Fed head of news Brian Murphy said: “While many members do support the Telegraph’s subscriptions first strategy, they still have a number of customers who prefer to purchase their newspaper in the more traditional manner.  It is unfair to expect these retailers to wait six months to be paid for this.”

From Monday, in England, Scotland and Wales the weekday cover price will rise by 30p to £2.80; the Saturday newspaper is going up 50p to £3.50p and the cost of the Sunday Telegraph will be £3.00.

In Northern Ireland, weekday editions will cost £3, the Saturday edition is rising a whopping 80p to £3.80 and the Sunday Telegraph will cost £2.70.

In the Republic of Ireland, the cost of both weekday and Saturday editions are rising but the cover price of the Sunday Telegraph will remain at €3.  The new Monday to Friday price will be €3.20, while the Saturday edition is increasing to €4.

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From December 27 and throughout January 2022, a total of 177 editions across England, Scotland and the Republic of Ireland will go up by 5p or 10p.

All price increases will include pro rata profit margins for retailers.

NFRN National President Narinder Randhawa said: “This is great news and a timely New Year boost for thousands of retailers.

“When publishers put the prices of their titles up, there is always a danger that retailers will suffer because of reduced profits, which has recently been the case. But it is pleasing to see that our calls for fairness have been heeded by JPI.

“We encourage our members to get behind these important local community titles and look forward to building on this with JPI.”

It comes after News UK Direct to Retail (DTR) told its retailers last week that it was increasing delivery charges by 3% next year, with 50% of the increase deferred until 5 July as “a gesture of goodwill”.

In a letter to newsagents, the publisher of the Sun and The Times argued that although it had frozen delivery charges last year during the pandemic it now needed to increase its charges to reflect increased costs.

Narinder Randhawa said: “Last year, we were relieved when News UK DTR, along with Smiths News and Menzies Distribution, took the common-sense decision to suspend any carriage charge reviews in the light of the challenging position that independent retailers were facing.

“News UK DTR pressing ahead with an increase to its charge will only add to newsagents’ angst.

“The company is also running the risk of causing yet even more news retailers to exit the industry. For swathes of retailers, handling news is becoming increasingly unprofitable.”

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Many of the details, particularly relating to the day to day operation of the scheme, have yet to be decided.  However, the regulations will place a number of obligations on retailers, including to itemise the deposit on till receipts, register with the scheme administrator and take back empty containers.

The level of the deposit has not been specified, but it will apply to PET bottles and cans used for drinks up to a size of 3l.

The NFRN’s head of political engagement Adrian Roper said: “We are pleased that this important scheme is moving in the right direction. We will continue to engage with ministers and the scheme administrators, when appointed, to ensure that DRS in Ireland is robust and works for all retailers.”

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‘Crippling effects of HGV shortages’

RHA chief executive Richard Burnett has written to Boris Johnson stressing the need for action on the crippling effects of the current HGV driver shortage.

The RHA says it needs access to EU and EEA labour to address the shortage and has asked for the introduction of a temporary worker visa for HGV drivers. It is also calling for this occupation to be added to the Home Office Shortage Occupation List.

Concluding the letter to the Prime Minister, Burnett said: “It is our collective view that there has never been a more challenging time for this industry and we urge you to take decisive steps to ensure that we can continue to maintain the UK’s integrated and finely balanced supply chains.”

The exodus of foreign workers brought about by Brexit has left masses of unfilled driver vacancies.

There are 16,000 fewer lorry drivers in the UK than there were at the start of 2021 – tipping the road haulage sector into crisis. The RHA has asked the government to take urgent action.

The situation has potential to hold up supplies, and force food prices up.

The RHA (Road Haulage Association) driver shortage data was featured on BBC Newsnight, as the programme investigated the UK’s ongoing HGV driver shortage.

The RHA presented the programme with a wealth of information which cast a harsh light on the full extent of the driver shortage.

The information supplied showed that 95% of all food consumed is moved by lorry.

Forty of the largest haulage firms have a total of 3,654 vacancies – this works out at 91 vacancies per haulier. Small and medium haulage firms have at least 2,573 vacancies; while 58% of the haulage industry said that driver shortages were due to Brexit

Brexit transition

The shortage has been made worse by the ending of the Brexit transition period, which saw changes to the way goods move between the UK and EU, including approximately 15,000 EU lorry drivers returning home to mainland Europe.

“The full effects of the shortage had been masked by the impact of the Covid-19 pandemic, which saw a downturn in demand for haulage from many sectors” the RHA stated.

“However, with all parts of the UK economy ramping back up as restrictions are eased and the vaccine rollout progresses, the crippling lack of fully trained truck drivers is truly starting to show.

“There are also concerns within the industry that the lack of HGV drivers will increase the price of haulage, which will in turn be passed on to the consumer with an increase in the price of goods in supermarkets and other businesses.

Dangerous Situation

Rob Hollyman of Youngs Transport and Freight also spoke out on BBC Newsnight last night, saying: “It’s a very, very dangerous situation.”

He also told the BBC that ultimately, we could see the driver shortage “having a very detrimental effect on pricing structures within supermarkets and the like”.

Empty shelves ahead

The Federation of Independent Retailers (NFRN) is also urging the government to take immediate action to avoid shops being faced with empty shelves. The Road haulage Association (RHA) has warned that a shortage of HGV drivers will have a serious impact on maintaining delivery levels to stores.

NFRN president Stuart Reddish said: “Some of our members are already experiencing difficulties in obtaining stock and, if this shortage of drivers is not addressed, the situation will only get worse.

“As many retailers are just starting to recover from the hardships caused by the coronavirus pandemic, the last thing we need is a lack of availability of stock, especially when it comes to essential products.”

Food shortages are possible if urgent action not taken by UK government

FTAI – issues of Covid and Brexit affecting the sector

However the FTAI – the Freight Trade Association of Ireland – has said that the situation isn’t quite as severe in Ireland – there are the dual issues of Covid and Brexit affecting the sector.

“While the situation in Ireland isn’t as extreme as GB, it’s still exasperating,” Aidan Flynn told IFCR. “We saw how resilient the supply chain could be during the early stages of the pandemic – which tested its resilience, but now we also have the changing environment caused by Brexit to deal with. There’ll be a need to consolidate and consider solutions.

“With an ever decreasing pool of drivers, with the easing of restrictions and with the opening up of the construction sector in particular, thereby increasing demand for that work, it’s definitely making it more difficult to recruit drivers, even from further afield.

“What we’ve seen in the UK, with the exodus of EU drivers going home, it all has implications for the UK and Ireland – but it’s a pan-European problem. Along with that we have the inevitable costs of doing business increasing. The impact of Brexit will likely force prices up 11-12% because of the additional administrative burdens.”

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From January 1, 2022, the cheapest bottle of wine will cost €7.75, where previously it could cost under €5. A 700ml bottle of supermarket gin or vodka costing between €13 and €14 will rise to €20.71 under the system, while a 440ml can of lager will be a minimum of €1.32.

The plan was originally approved in 2018 but implementation has been delayed because the government wished to do this at the same time as Northern Ireland, in order to discourage potential smuggling and consumers travelling to retailers in the north.

However, Stormont has now indicated it will not be proceeding with similar legislation in the near future.

NFRN Ireland president Martin Mulligan said: “We broadly welcome the move to introduce minimum unit pricing because it levels up the playing field. The big multiples have taken our confectionery and Christmas trade, so it will give us all a fighting chance to compete.”

Clonmel convenience store owner Tom McDermott added: “For years the multiples have been using cheap alcohol as a loss leader. Minimum pricing will help smaller retailers to compete, especially on leading brands.”

However other representative bodies and trade associations have a different view.

RGDATA, which also represents members in the independent retail grocery sector has strongly criticised government plans to unilaterally introduce Minimum Unit Pricing on alcohol sales. The organisation said that the Government’s proposals to introduce the measure unilaterally, without any equivalent proposals in Northern Ireland, are an act of national folly and will merely drive the market for cheap alcohol across the border to Northern Ireland.

An all-island solution is needed to address cheap alcohol says Tara Buckley. Minister Feighan must explain measures to address cross border cheap booze, she says.

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