Chancellor Rachel Reeves has announced plans to protect British consumers from unfair price hikes linked to the Iran conflict, including new powers for the Competition and Markets Authority (CMA) to clamp down on profiteering. Speaking in the Commons, she said the government would monitor household essentials for price rises and disruption, and consider targeted tariff cuts on food to keep costs down.
Reeves ruled out a blanket household support package for energy bills, criticising the unfunded approach taken by Liz Truss during the Ukraine war. Instead, she confirmed contingency planning for every eventuality, with support targeted at those most in need, while adhering to fiscal rules to keep inflation and interest rates low.
The Chancellor also stressed the need for a diverse energy mix to shield the public from volatile fossil fuel markets, announcing exploration of government-backed indemnities for critical energy security projects. This comes amid fears that Donald Trump’s military actions in the Middle East could disrupt oil supplies and push up prices.
Prime Minister Sir Keir Starmer echoed the need to boost the CMA’s “teeth” against profiteering, while insisting the UK would not become more deeply involved in the conflict. He said he understood external pressure but remained focused on the British national interest.
Reeves will meet supermarket and banking bosses this week to discuss further support for customers, as the government seeks to balance economic stability with consumer protection during the ongoing crisis.
