Sir Keir Starmer has acknowledged the “pressure rising costs puts on families” as the conflict in the Middle East threatens to drive up prices. The Prime Minister warned that the longer the Iran war continues, “the bigger the impact on the cost of living,” and argued that “the best way forward is a negotiated settlement with Iran”.
On Friday, the government will announce new measures under the Pride in Place programme to revamp neighbourhoods in the south east of England. Housing Secretary Steve Reed will meet local people and community leaders to discuss efforts to protect household finances.
The Iran war has sent oil and gas prices soaring, with Tehran throttling the Strait of Hormuz and attacking energy facilities across the Gulf. Bank of England Governor Andrew Bailey said reopening the Strait of Hormuz is the “best thing to do” to prevent interest rates rising, after a vote to hold rates at 3.75%. He added that any further cuts are “not on the horizon” and warned that the war will likely increase household energy costs in summer and put pressure on food prices.
Kuwait reported on Friday that its Mina Al-Ahmadi oil refinery was struck by Iranian drones, sparking a fire. The government has already taken action to support consumers, including a £53 million support package for low‑income households reliant on heating oil, and frozen rail fares and prescription charges. Downing Street also noted that the South East will benefit from new £99 million flood scheme funding announced this week.
