By Guy Faulconbridge, James Davey and Kate Holton

LONDON (Reuters) – Consumers should not panic buy products as Britain is not heading back into a 1970s-style “winter of discontent” of strikes and power shortages, a junior minister said on Thursday.

Soaring wholesale European prices have sent shockwaves through energy, chemicals and steel producers, and strained supply chains which were already creaking due a shortage of labour and the tumult of Brexit.

Britain needed to offer emergency assistance to avoid a shortage in poultry and meat because of the spike in gas prices.

Tesco, Britain’s most popular supermarket company, warned last week that the lack of truck drivers would cause panic-buying during Christmas. If nothing was done.

Some supermarket shelves were empty of water and carbonated beverages, and turkey producers warned families that they could lose their Christmas dinner if there is a continued shortage in carbon dioxide.

Paul Scully, Small Business Minister at Times Radio said that there is no reason for anyone to panic shop.

He said, “Look. this isn’t a 1970s phenomenon at all.” When asked about Britain’s upcoming winter of discontent. His reference was to 1978-1979 when the country experienced severe inflation and other industrial actions that left it in complete chaos.

Tesco spokesperson stated that although the group has great availability currently, there have been “distribution challenges” caused by a lack of HGV driver drivers.

Representative for No. 2 player Sainsbury’s said “availability in some product categories may vary but alternatives are available”.

Farmers and supermarkets have appealed to Britain for relief from labour shortages in critical areas, such as truckers and processing. This has strained food supply chains.

LABOUR CRUNCH

The trucking industry needs another 90,000 drivers to meet demand after Brexit made it harder for European workers to drive in Britain and the pandemic prevented new workers from qualifying.

Richard Walker, supermarket Iceland’s managing director, stated that his business is short about 100 HGV drivers, which makes it more difficult for him to serve customers. He also said that delivery cancellations were occurring.

This is worrying. As we work to increase stock, in order to reach Christmas season, this shortage has become a major problem. It is a concern.

Boris Johnson, Prime Minister of the National Farmers Union, has been asked by them to immediately introduce a new visa system in order to address labour shortages throughout the supply chain.

COAL POWER

The rising natural gas prices are adding to chaos. Six of the world’s largest energy providers have closed their doors this month. This means that nearly 1.5 million customers are now facing an increase in their bills.

Just over a month before Johnson hosts world leaders at a United Nations climate conference, known as COP26, power generator Drax Group (LON:) Plc said it could keep its coal-fired power plants operating beyond their planned closure next year.

Scully explained that Britain is in discussions with Ofgem to determine if a price cap for electricity or gas may be necessary.

This cap was put in place to prevent energy companies from gauging customers, but it has made their businesses less profitable as it falls below wholesale prices. It means that consumers are being subscribing to energy companies.

A household using average amounts of energy will see the price cap rise to 12% by Oct. 1, to 1,277 pounds ($1,740). The normal review would take place in April 2022.