Fears over more price rises as twice as many haulage companies going bust since Brexit
The number of shipping companies defaulting on their debts has almost doubled in the five years since Brexit, raising fears of supply chain disruption and food prices.
Data revealed in response to a Parliamentary question presented by Liberal Democrat Europe spokesman Al Pinkerton shows 2,051 transport companies went bankrupt between 2021 and 2025; This is almost double the 1,068 that went bankrupt in the previous five years.
This comes at a time when oil prices have risen in response to Iran’s pressure on tankers passing through the Strait of Hormuz, amid growing fears about rising prices and shortages as a result of the Iran war.
Figures are expected to worsen in the coming months, with the Road Transport Association warning that 80 per cent of operators expect a drop in business as transport firms scramble to adapt to the full implementation of the EU’s Entry-Exit System.
Meanwhile, industry bodies have previously warned that the damage to the economy from the new EES system, which requires UK travelers to register their fingerprints and take photographs when entering the Schengen area, could be as high as £400 million.
The Liberal Democrats are now renewing their calls for the government to urgently secure a deal from the EU to allow British HGV drivers to record biometric details away from the border.
Liberal Democrat Europe spokesman Al Pinkerton MP told The Independent: “The Government must immediately strike a deal with the EU to allow British hauliers to record biometric details away from the border.
“Failure to do so will be catastrophic not only for shipping companies that cannot survive, but also for supply chains, leading to a subsequent rise in food and goods prices for those already facing the effects of the rising cost of living.
“Therefore, ministers need to start negotiations on the Customs Union with our European partners as well.
“The Customs Union is the biggest lever the government can use to boost jobs, deliver growth and cut through unnecessary Brexit bureaucracy. The government knows this and it’s high time it did something about it.”
It comes just days after a Bank of England survey of financial bosses at UK companies revealed they expect to raise prices more quickly as they come under pressure from rising energy prices linked to the Iran war.
Decision Maker Panel (DMP) research showed that firms expect to increase their prices by 3.5 per cent over the next 12 months, based on data for the three months to March.
This is 0.1 percentage point higher than forecast in the three months to February.
While Sir Keir Starmer signaled earlier this week that the government would forge stronger relations with the EU in light of the global impact of the Iran war, he insisted that the red lines of Labour’s manifesto on closer ties with Europe remained.
In the general election, the party vowed not to seek a customs union, rejoin the single market or establish freedom of movement as part of closer ties with the bloc.
Speaking on Wednesday, the prime minister said the “volatile” international situation caused by the US-Israeli conflict with Tehran meant Britain’s “long-term national interests require closer partnership with our allies in Europe and the European Union”.
UK and EU negotiators will meet this summer to discuss closer ties on food standards and emissions, as well as a youth mobility scheme.
A Cabinet Office spokesman said: “EES is an EU system and hauliers will only need to register once to use the system. “The Government is working closely with ports and transport operators to ensure the rollout goes as smoothly as possible.
“More broadly, our food and drink trade deal with the EU will reduce red tape and checks for British lorry drivers and add £5.1bn to the economy.”
