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Campaign — UK policy

It's time to stop supply chain issues from putting the brakes on recovery

Material shortages and cost increases, energy price hikes and supply chain disruption are affecting all sectors, having a direct impact on production levels and holding back growth. Understand how supply chain challenges are playing out across the economy and help shape our messaging into government.


The change we're calling for

Supply chain challenges are not only holding back growth, but threaten to slow down progress against the UK’s net zero commitments and levelling up ambitions. That’s why we’re calling on government and industry to work together to tackle material and labour shortages and smooth the pressure being felt due to rising energy prices.

  • Improve communication with businesses on the work of the government’s Supply Chain Taskforce, including how business insight is being used

  • Target skills interventions and funding towards shortage areas so that skills supply matches economic demand

  • Create an agile migration system that is responsive to changes in short-term economic demand where labour shortages are most felt

Quote —

“Intense supply side challenges continue to put pressure on firms’ capacity to meet demand, and are likely to persist for much of this year. To tackle these issues, business is ready to work with the government to adopt a more holistic, cross-economy approach which supports the entire supply chain.”

Anna Leach, CBI Deputy Chief Economist

The challenge facing business

Firms across the economy are seeing significant cost pressures, caused by higher wages as well as increased distribution, component, and energy costs, which are beginning to be passed on to consumers.

For some businesses and particularly smaller firms, there is little resilience in the aftermath of COVID to stand up to these pressures - leading to fears of some business closures and lost jobs. On the consumer side, lower income households are also set to be hit hardest, with wage increases not keeping up with the much higher cost of living.

Concern related to the energy crisis are also continuing to grow, putting further pressure on businesses, particularly those in manufacturing or other sectors with high energy usage. These are issues which are being felt acutely in the short-term but will continue to have impacts beyond the end of the pandemic.

The impact of shortages

These challenges are being felt all across the UK economy

Firms are facing challenges on all fronts in the form of rising energy and material costs, alongside an inability to access key materials.

  • Average increase in energy costs firms were reporting in January 2022 

  • Manufacturers reported an increase in material costs of between 25-40%

  • of builders had delayed jobs in Q4 2022 due to availability of materials

The case for action

The case for tackling supply chain challenges is not just about driving our economic recovery, but protecting the long-term resilience of firms and their ability to invest. It’s about stretching beyond supporting just a handful of sectors, and instead taking action across the whole economy to deliver growth. Find out how these issues are affecting other businesses by reading our supply chain heatmap.

  • UK policy —

    Tackling supply chain challenges: CEO action plan

  • UK policy —

    CBI supply chain heatmap

Our progress and impact

The CBI campaigns tirelessly on behalf of our members so that business creates prosperity for all. Learn more about the work we do and the impact we are making on this issue.

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Support the change

  • Are you a business leader?

    Join the CBI

    Our members are our mandate, and the reason we’re the most influential business organisation in the UK. Join the voice of business and help us campaign to address supply chain challenges and drive economic recovery.

    Become a member

  • Are you a CBI member?

    Have your say

    Want to have your voice heard on supply chain issues and our wider work on shortages? Find out the practical ways you can get involved and drive real change on the issues that matter to your business.

    Get Involved

  • Are you a policymaker?

    Make a difference

    This campaign is led by the CBI's UK policy team. Contact Ed Richardson to find out about the change UK business urgently needs and how you can support it.

    Contact Us