Keir Starmer warned Brits to brace themselves for a long-term hit to the cost of living from Trump’s war with Iran today – but stopped sort of unveiling concrete measures to help.
The Prime Minister warned the fighting in the Middle East ‘will affect the future of our country’ as he spoke to reporters about the cost of living.
Fears are mounting of shortages as Iran maintains a blockade on the Strait of Hormuz and the US President swings wildly between saying the war will end soon and threatening escalation.
Around a fifth of the world’s oil supplies usually run through the channel, and there are huge knock-on effects for products such as fertiliser and aluminium, as well as natural gas.
The food industry has raised alarm about inflation heading towards double digits by the end of the year.
And the boss of Ryanair has suggested there could be issues with jet fuel supplies by next month.
But amid increasingly strident calls to unveil specific solutions and mitigations he was accused of falling back on platitudes and vague allusions, like warning that reopening Hormuz ‘will not be easy’.
He insisted there would be a ‘long-term plan’ in place to emerge a ‘stronger and more secure nation’ and announced plans for summits with the EU and other nations.
He also outlined measures already taken by the government in last year’s Budget, months before the fighting broke out.
Former Conservative minister turned Reform UK Treasury spokesman Robert Jenrick said: ‘Is Keir Starmer allergic to action? Another non-statement this morning.
‘Drill the North Sea. Scrap the fuel duty rise. Take VAT and the stealth levies off energy bills.’
And Sir Mel Stride MP, the Conservative Shadow Chancellor, said: ‘Keir Starmer’s Labour blame everyone but themselves.
‘Britain is weaker because of Rachel Reeves and Ed Miliband’s choices. Tax hikes and Labour’s net zero obsession are driving up costs and hitting families in the pocket.
‘Reeves offers nothing but more borrowing, more taxes, more welfare – and working people are paying for Labour’s spending spree. Hardworking families are almost £1,000 worse off this year, while those on benefits get ever more cash.
‘Only the Conservatives will Get Britain Drilling in the North Sea, axe the fuel tax hike, cut bills by £200, lower taxes, and deliver a stronger economy and a stronger country.’
The price most households pay for energy under regulator Ofgem’s price cap fell by 7%, or £117 a year, to £1,641 from Wednesday.
But respected energy analyst Cornwall Insight said its prediction for the watchdog’s price cap from July to September now stands at £1,929 for a typical dual fuel household – an increase of £288 or 18% on April’s cap.
Chancellor Rachel Reeves has indicated she will not provide a Liz Truss-style blanket energy bailout for households, instead focusing help if it is needed on the poorest.
One minister told the Daily Mail that there should be advice similar to that proposed by the International Energy Agency recently.
‘We should be making more effort to brace people for what they need to do. Drive at 55, WFH, don’t go out as much… the stuff the IEA was talking about,’ they said.
‘These things are coming down the track. We need to help nudge people towards the things they can do to cut down on fuel use and energy bills.’
A Whitehall source said there is a live debate within government about when to level with the public about the looming economic crisis.
‘There is a balance to be struck between not freaking people out completely and preparing them for what is coming,’ the source said.
‘Obviously we don’t know how long this is going to last or how bad it will get, but it’s already clear that the impact is going to be serious.
‘I’m not sure we’ve got the balance right at the moment – we need to start bracing people for the fact this is going to be difficult.’
Families with a 55-litre diesel car face paying more than £100 at the pump for the first time since December 2022.
But Ms Reeves played down the prospect of a fuel duty cut this morning, and insisted any bailout would go to poorer households rather than middle earners.
In an interview on BBC Breakfast, the Chancellor was challenged that a host of other countries had cut VAT and duty at the pumps and that was the quickest way to help Brits.
But Ms Reeves merely stressed she had already frozen fuel duty until September, and warned about levels of Government borrowing.
Speaking on Times Radio, Mr Kyle said: ‘I was looking immediately after the conflict started, where we interact in order to get resilience into our society, into our economy, we’ve been working with all these key sectors, identifying sectors where there may well be challenges down the track.
‘We have no (fuel) supply chain issues at this moment at all.
‘So people need to just realise that our country is well supplied when it comes to critical infrastructure and fuel.’
Mr Kyle was pushed on supply of medicines, after NHS England chief executive Sir Jim Mackey said he was ‘really worried’ about the issue.
The Cabinet minister said: ‘What the NHS boss said this week was that he was worried about live medicines, one very specific medicine type in the NHS.
‘He has raised that concern, and we will look at that concern. But he is not talking about all medicine and all parts of the NHS.’
Ryanair chief Michael O’Leary said that if the war continues for much longer there would be questions about jet fuel supplies.
‘We don’t expect any disruption until early May, but if the war continues, we do run the risk of supply disruptions in Europe in May and June, and we hope the war will finish sooner than that and the risk to supply will be eliminated,’ he told Sky News.
Mr Trump said yesterday that the UK and other countries which did not take part in strikes against Iran should secure the Strait of Hormuz themselves.
He posted on his Truth Social site: ‘All of those countries that can’t get jet fuel because of the Strait of Hormuz, like the United Kingdom, which refused to get involved in the decapitation of Iran, I have a suggestion for you: Number 1, buy from the U.S., we have plenty, and Number 2, build up some delayed courage, go to the Strait, and just TAKE IT.
‘You’ll have to start learning how to fight for yourself, the U.S.A. won’t be there to help you anymore, just like you weren’t there for us.’
Sir Keir has faced calls to ease the cost of living from shadow chancellor Mel Stride, who said his party ‘will get Britain drilling in the North Sea, cut bills by £200, lower taxes, and deliver a stronger economy and a stronger country’.
The price most households pay for energy under regulator Ofgem’s price cap will fall by 7 per cent, or £117 a year, to £1,641 from Wednesday.
But respected energy analyst Cornwall Insight said its prediction for the watchdog’s price cap from July to September now stands at £1,929 for a typical dual fuel household – an increase of £288 or 18 per cent on April’s cap.
RAC figures yesterday showed average diesel prices at UK forecourts were 182.8p per litre, up 40p since the start of the conflict, which brought the cost of filling up a 55-litre family car to £100.52.
Should the Government be more upfront about what is coming?
The average cost of petrol is 153.8p per litre, an increase of 20p since the war began.
Mr Trump later declared a visit to the US by the King and Queen later in April will be ‘TERRIFIC!’
He revealed the ‘historic state visit’ will take place between April 27 and 30.
State visits are undertaken on ‘the advice of His Majesty’s Government’.
The White House said Mr Trump will also deliver an address to the US public on Wednesday evening to provide an update on the war.
