There’s a quiet battle raging on the streets of Britain.

It’s the war for workers – getting people into jobs, behind steering wheels and into fields and farms to keep the economy moving in the run-up to Christmas.

And increasingly dramatic tactics “reek of competition” not everyone can keep up with, experts have warned.

The hospitality sector has already begun hiking up its wages in a bid to attract the likes of chefs and front of house staff away from competitors.

Across East Anglia bosses are offering four day working weeks, bonuses based on productivity and extra holiday.


And this week Amazon has thrown down the gauntlet for the big Christmas recruiters by offering a £3,000 signing bonus for staff joining ahead of the festive period.

Meanwhile M&S has also begun its seasonal recruitment drive and has chucked in a 20pc staff discount to sweeten the deal.

So the big names need more feet on their shop and factory floors.

And that’s before the ongoing demand for HGV and delivery drivers, factory workers and agricultural staff are thrown in.

The tactics “reek of competition”, said Professor Eric Smith of the University of Essex.

Prof Smith said: “This issue has come about because of two factors: Brexit and the pandemic. No one was really sure of the impact of either of these and the problems are being exacerbated because of existing shortages like drivers.

“These are jobs which traditionally are fairly unattractive for domestic workers and now we don’t have the labour coming in from abroad, so vacancies have to be filled from a limited pool.

“This move from Amazon doesn’t reek of desperation but of competition. They have deep pockets and they’ll do whatever they need to keep packing parcels and getting them out to customers, especially with Christmas around the corner.

“The impact of this is interesting and at the moment pretty unknown. If we are seeing the likes of factory workers and milk men being paid more then there is potentially some redistribution of wealth and welfare.

“In terms of a wider macroeconomic impact I think it’s too early to say. In the housing market for example we’re not going to suddenly get loads of people on the housing ladder thanks to a signing-on bonus from Amazon.

“Where we’ll see the early indications is not in average house prices it’ll be in the average prices of the lower-priced homes. This is where people will be able to get a foot on the housing ladder but to be honest, I think that will be influenced more by the wider changes in the economy than shorter-term factors like wage increases for Christmas.

“The only way we can benchmark where we really are is against other countries. In the US and on the continent, I think they are having trouble with filling roles.

“But they’re not having it to the same extent that we are. Higher wages means higher cost for goods – previously some economists insisted we didn’t need to worry about inflation but it will be interesting to see whether or not that outlook changes.”

But some simply can’t keep up with “golden handshakes” – and it’s the businesses which make the region’s high streets unique.

Candy Richards is the East of England development manager for the Federation of Small Businesses and said that some companies will be looking at their staff rota and wondering if they’ll make it through until Christmas.

She said: “Small business can’t offer a golden handshake – they just can’t compete. Not all SMEs are in crisis but some will be wondering whether or not they’ll make it through until next year – let alone whether they can grow and expand.

“They’ll be looking at their staff and wondering whether they can even open fully over what is a really key trading period for them.

“They can offer other bonuses though. If you work for an SME you can make a real impact to a business and your local community and I think there is more of an awareness of supporting local after the pandemic.

“I also think it offers more opportunity for long-term career options thanks to the level of training they tend to put staff through.”

She added: “But that might not necessarily be enough of a motivation for some people. So there are three things the government can do to support SMEs to level the playing field.

“The first is making changes to employment allowance from £4,000 to £5,000. The second is changes to business rates and the third is addressing the skills shortage. Not just in the skills we think we need – but across the board.

“We estimate that these changes could be worth about £57bn to the sector – any support would be hugely appreciated and could mean the difference between a business surviving and not.

“Something needs to happen – this isn’t just one sector, it’s across the board. I speak to people in hospitality who are struggling but also those in haulage and businesses you wouldn’t necessarily think of like back office staff.”

And her point has been echoed by the British Retail Consortium (BRC).

Helen Dickinson, chief executive of the BRC, said: “The evidence is clear – business rates are costing shops and jobs and undermining the government’s ‘levelling up’ agenda.

“Retail is the UK’s largest private sector employer and serves as a vital lifeline to places most in need of levelling up, offering flexible jobs, supporting other businesses on the high street, and breathing life into local communities. The business rates review is a great opportunity for government to put the ‘shops tax’ into reverse, and support investment and growth in the regions that need them the most.”