Retailer Next has called for the government to take a “more decisive” approach as it warned a lack of foreign workers could hamper Christmas shopping deliveries.

The business, led by Conservative peer Lord Wolfson, said that “for the sake of the wider UK economy”, ministers needed to address the “looming skills crisis” in areas such as warehouses, restaurants, hotels and care homes.

Next also revealed that supply chain problems had taken their toll on sales while higher shipping costs were pushing up prices.

Despite the challenges, the retailer reported pre-tax profits of £347m for the six months to 31 July, 5.9% up on pre-pandemic levels, as full-price sales climbed by 8.8% – and also bumped up its expectations for full-year earnings.

But looking ahead to its peak trading season ahead of Christmas, it said it was concerned about recruitment in warehouse and logistics.

“Without the contribution of overseas workers to assist with these peaks, we suspect customer deliveries may take longer to arrive as we go into the peak trading season,” Next said.

The retailer said that the current HGV driver crisis – currently creating chaos at petrol pumps – had been “widely predicted for many months”.

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“For the sake of the wider UK economy, we hope that the government will take a more decisive approach to the looming skills crisis in warehouses, restaurants, hotels, care homes, and many seasonal industries,” it said.

“A demand led approach to ensuring the country has the skills it needs is now vital.”

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