British business groups have warned that the ongoing rail strikes will cause “incredible” damage to the UK economy as firms brace themselves for serious disruption.
The Rail, Maritime, and Transport Workers’ union (RMT) has started a three-day nationwide industrial action. It said it wants to “shut down” the country’s railway network in what union leaders say will amount to the “biggest rail strike in modern history.”
Economists at the Centre for Economics and Business Research (CEBR) have warned that the strikes will cause at least £91 million ($112 million) in losses to the UK economy.
The London Chamber of Commerce and Industry warned that the capital “cannot afford a summer of chaos on the railways and tube lines.”
The group’s chief executive Richard Burge called the strike “damaging” and expressed concerns about the possibility that “this dispute continues through the year and we see multiple strikes into the future.”
“A week lost every month for the foreseeable future is going to do incredible short-term and long-term damage to the economy and the UK’s reputation as an attractive destination for investment,” he said.
Kate Nicholls, chief executive of UKHospitality, has warned that the rail strike could cost the hospitality sector up to £540 million ($664 million).
She said: “Fragile consumer confidence will take a further hit, thousands of people able and willing to spend money in hospitality venues across the country will be prevented from doing so, while staff will undoubtedly struggle to even get to work.
She called for “urgent and productive talks” to avoid further disruptions.
Meanwhile, James Hardiman, senior analyst at the British Retail Consortium (BRC), said the rail strikes will be “damaging” for the retail sector, as the strikes limit commuter and customer traffic.
“UK footfall is already down on pre-pandemic levels, and this will only slow the progress retailers have made to bring people back in-store,” he said.
At a Cabinet meeting on Tuesday morning, Prime Minister Boris Johnson said the strike was “so wrong and so unnecessary” and causing “significant disruption and inconvenience up and down the country.”
It was making it “more difficult for people to get to work, risking people’s appointments, making it more difficult for kids to sit exams—all sorts of unnecessary aggravations,” he said.
Johnson called on the “union barons” to return to the negotiating table and restart talks with Network Rail and the train companies.
But the main opposition Labour Party has accused the government of “hobbling” the talks between the unions and rail operators by refusing to take part.
