Chancellor John Healey has pledged to keep a close watch on petrol pump and supermarket pricing as prices continue to rise amid the ongoing Iran war, vowing to step in if consumers are overcharged. He conceded that families and businesses cannot be completely insulated from the financial strain, a position that comes as Prime Minister Andy Burnham seeks to signal a focus on the cost of living two weeks into his premiership.
Healey said: "We'll be watching closely for any suggestions that customers are being taken for a ride at the pump or the till." In the Telegraph, he wrote: "Companies' willingness to work with the Government throughout this crisis has been positive, and there has been no significant evidence of so-called price gouging, but I want to be blunt in reassuring the public that our regulators have the powers to clamp down on it if it happens."
No complete protection from global shock
The former defence secretary said he had spoken to international counterparts in his first days as chancellor about a joint economic response to the war in Iran. "Being frank, we can't completely stop the squeeze that families and businesses will feel with a global shock of this scale," he said.
"What we can do is be an active, hands-on Government that puts British interests first – giving breathing space to those feeling financial strain and making our country more resilient so we can better weather these shocks in the future."
Cost-of-living measures under Burnham
Since taking office, Burnham has announced a series of measures aimed at easing cost-of-living pressures, including a cut in VAT on energy bills and capping bus fares at £2 throughout 2027. He said on Sunday that he wanted to take further action on utility bills and rail fares. "I think rail fares are too high, outrageously so in some instances. So that's something that's in my sights," he said. He told the Sunday Mirror: "I mentioned VAT and electricity bills. It's a short-term measure at this moment, but let's see where we can go with that."
Other pledges from the Prime Minister, such as cutting business rates for pubs and expanding technical training in schools, are likely to require additional spending.
Budget date and fiscal discipline
Healey promised that his first budget would be "built on fiscal discipline" as he revealed this week that it would take place on October 28. He told The Times that he and the Prime Minister have written to the Cabinet to make clear there is no new money for the fresh pledges. Departments need to be ready to "shift funding away from unproductive or legacy programmes that no longer reflect this administration's priorities", he wrote in the letter.
