A crackdown on companies profiteering from the Iran war at the expense of millions of Brits is among cost-of-living plans announced by Rachel Reeves today.
The Chancellor vowed that the Government would guard against unfair price rises amid fears over surging oil and fuel costs sparked by Donald Trump’s conflict in the Middle East.
She told MPs on Tuesday that she was investigating cuts to tariffs on food in a bid to keep prices low and would be meeting with supermarket and banking bosses this week to “discuss how they can further support their customers”.
The Government will “monitor the cost of household essentials for both price rises and disruption” and the Competition and Markets Authority (CMA) will have the power to "crack down on price gouging", the Chancellor said.
But Ms Reeves ruled out a blanket household support package for energy bills like the one introduced by Liz Truss when Russia launched its full-scale invasion of Ukriane.
She added: “Today, I can announce that we are going further to make sure that the Competition and Markets Authority have the powers that they need... to detect and to crack down on price gouging, bringing in a new anti-profiteering framework and considering time limited targeted powers for the CMA and other regulators.
“This week, the business Secretary and I will convene the regulators council to discuss their work to protect consumers, because, let me say again, this Government will not tolerate any company exploiting this crisis at consumer expense.”
On energy bills, the Chancellor said: “The previous government pushed up borrowing, interest rates, inflation and mortgage costs with an unfunded, untargeted package of support under Liz Truss.
“That gave the support to the most wealthiest of households...That left us with high levels of national debt, a cheque written then for a bill that is still being paid today.
"I can confirm to the House that contingency planning is taking place for every eventuality so that we can keep costs down for everyone and provide support for those who need it most, acting within our ironclad fiscal rules to keep inflation and interest rates as low as possible.”
It comes after Sir Keir Starmer said he was looking at boosting the competition regulator’s powers, giving it “further teeth” to deal with profiteering.
This could involve giving regulators “time-limited, targeted powers” and the Treasury, Department for Business and Trade and regulators were said to be working “at pace” on what those powers could be.
The Chancellor also told the Commons that Britain needs a diverse mix of energy to shield the public from volatile fossil fuel markets.
She announced that she is exploring government-backed indemnities for critical energy security projects so construction can continue if a project is legally challenged.
Though the US pause on strikes against Iranian energy infrastructure calmed markets and saw oil prices ease back, the Prime Minister said Britain must be prepared for the Iran war to continue “for some time” on Monday.
Donald Trump had threatened to obliterate Iranian power plants if Tehran did not open the Strait of Hormuz to shipping by 11.45pm on Monday, and then said he would “postpone” the strikes after “very good and productive” talks with Tehran.
But Iranian officials have denied any such negotiations took place.
The Prime Minister insisted the UK would not become more deeply involved in the conflict as he faced questions from Parliament’s Liaison Committee on Monday.
Asked about Mr Trump’s recent public comments about him and the UK, Sir Keir said he was “unapologetic” about remaining focused on the British national interest.
“A lot of what is said or done is undoubtedly said and done to put pressure on me. I have no doubt about that. I understand exactly what is going on, but I’m not going to be wavering on this,” he said.
