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Media caption, Asked about rising prices and inflation, Boris Johnson says he believes that "supply will match demand”.

Boris Johnson is "not worried" about the current jobs gap and rising prices in the UK, saying supply chains will sort themselves out "rapidly".

The PM told the BBC that the economy was facing the "stresses and strains" of a post-Covid recovery.

But he said the country was "moving to a new approach", with companies paying higher wages for UK workers, rather than relying on low paid immigration.

And he claimed government schemes, like the hardship fund, would help people.

Mr Johnson also said he was not worried about inflation as he believed "supply would match demand".

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Earlier, the prime minister denied there was a crisis in the UK, despite a shortage of HGV drivers disrupting fuel deliveries and a range of industries warning there was a lack of skilled workers as a result of both the pandemic and Brexit.

He told BBC Radio 4's Today programme the country was at a "turning point" and the UK's "world leading" logistics industry would fix the issues.

The PM also said on BBC Breakfast that only 127 HGV drivers had applied for temporary visas offered by the government to help tackle the shortage.

But the Road Haulage Association said a three month visa "simply wasn't attractive enough for European truckers to give up their current jobs for a short term contract – perhaps only weeks long – with all the hassle, including short term rents, that would be involved."

'Government can't magic up changes'

In an interview with the BBC's Laura Kuenssberg at the Conservative Party conference, Mr Johnson was asked about appeals from industry for help to fill vacancies and concerns from the public about prices – in a week when a weekly £20 top-up to universal credit claimed by 5.8 million people is due to end.

He said the government was "giving all the protections that we can" to consumers through schemes like the winter hardship fund and increasing the warm homes allowance.

But he focused on the UK moving away from the "tired, failed approach" of relying on low skilled and low paid workers from abroad, saying the long term effects would be higher wages, better working conditions and a rise in productivity.

The PM added: "Some people who have been writing to me maybe worried about this, but I'm not worried about this because, actually, I think it will be good for their businesses to invest in people."

He also said companies in control of supplying goods will "manage" any issues, rather than the government "stepping in to patch and mend every bit of our supply chains".

Mr Johnson said: "The government can't magic-up changes to their systems overnight.

"People need to recognise that we can't simply continue with models which have basically held this country back and held our economy back."

Boris Johnson says he's "not worried" about the squeeze on supply chains, labour shortages or inflation.

He's trying to use this moment to argue that what we are seeing is merely the birth pangs of a new economic model.

But talk to some of his colleagues – some of whom made their own warnings about specific economic pinch points before the summer – and you don't quite hear the same.

When the prime minister displays a disregard for Westminster's conventions or politesse it's one thing.

But running the risk of looking like you don't understand everyday concerns is another.

The polls right now suggest that the government is not being punished for queues at the pump or empty shelves.

Johnson loyalists credit his political appeal that seems to defy natural gravity.

But if prices continue to creep up and disruption continues, those feelings could turn.

Downing Street is in a bullish mood, but confidence can tip into complacency – a sentiment that few voters would reward.

Read more from Laura here.

And when it came to inflation – the rate at which prices are rising – Mr Johnson dismissed the worries of some economists.

"I think that people have been worried about inflation for a long time [but] it hasn't materialised," he said.

"What you're seeing stresses and strains that are caused by the global economy coming back to life and supply will match demand."

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