Lord Richard Walker, the government's cost of living tsar and executive chairman of Iceland, has issued a stark warning to the incoming Prime Minister Andy Burnham, urging him to confront a looming wave of price hikes. In an exclusive piece for the Mirror, Walker cautioned that households and businesses face a 'freight-train of inflation' this autumn, driven by rising food and energy costs amid the fallout from the Iran war.
Walker calls for urgent action on household finances
Walker, appointed by former PM Sir Keir Starmer in February 2026 as the cost of living champion, stressed that political leaders must focus on practical relief for struggling families. 'When I visit our stores, people aren’t talking about leadership speculation. Because they simply don’t care. They are asking why their bills are still so high and whether anyone in politics is focused on the practical things that would actually help them,' he said.
His intervention comes as Andy Burnham, the newly re-elected MP, is set to replace Sir Keir Starmer, who resigned following a wave of senior cabinet resignations. Burnham's top priority will be to ease the cost of living squeeze affecting millions, kick-start the economy, and reduce the burden of high household bills.
Warning of 'freight-train of inflation' this autumn
Writing exclusively for the Mirror, Lord Walker warned: 'Now is not the time to duck tough decisions or to kick the can down the road. Because households and businesses up and down the country will have to grapple with a freight-train of inflation that will hit in the Autumn on everything from food to heating.' Economists predict that the Iran war's impact on energy and food prices could persist for months, despite a tentative peace deal between US President Donald Trump and Iran.
Although the Office for National Statistics reported that inflation eased to 2.8% last month, experts believe this is temporary, with living costs expected to rise again later this year before dropping back in 2027.
Walker urges retailers to absorb costs
Lord Walker also called on retailers to avoid passing on the full impact of higher costs to consumers. 'I urge leaders to consider where they can take a step to make things more affordable, especially if you’re dealing with essential goods. This is what I mean by thinking customer-first,' he said. He previously criticised fuel forecourts for 'taking the p***' with opportunistic price rises during the Middle East crisis.
Previous warnings and recommendations
This is not the first time Walker has intervened in political turmoil. Last month, he warned Labour against 'Westminster navel-gazing' and backed Sir Keir to remain as PM. As cost of living champion, he has made several recommendations to relieve household pressure, and the government has begun adopting measures where quick action is possible. 'I need the candidate or candidates who now fancy themselves in the top job to sit up and take notice of this agenda – to wake up and smell the coffee,' he added.
