The SNP has urged the UK Government to provide an emergency cost-of-living support package as fuel and food prices are expected to rise.
Oil prices have soared since the US-Israeli attack on Iran last week, hitting more than 100 dollars a barrel for the first time since 2022, while London’s FTSE 100 Index fell nearly 2% soon after opening.
SNP Westminster leader Stephen Flynn has urged the Government to scrap its planned fuel duty hike this autumn, and to ensure the energy price cap does not have to rise because of the turmoil in the Middle East.
He urged Sir Keir Starmer and Chancellor Rachel Reeves not to be “commentators on this growing crisis”.
“People are already struggling to get by, and afford a decent standard of living, in Brexit Britain,” he said.
“Many families are at breaking point and simply can’t take any more – in a broken UK economy where bills always rise and nothing ever seems to improve.
“The Labour Government must intervene and deliver an emergency package of financial support to help families and put money back in people’s pockets.
“Energy bills are already higher than when Keir Starmer came to power and they will be £373 higher than promised from April. The price of petrol and food is sky-high, inflation has increased by 50%, and people are struggling to keep a roof over their heads.
“Keir Starmer must cancel the Labour Party’s plan to hike fuel duty by 5p per pound, and instead slash rates if the cost of petrol and heating oil remains high.
“If energy bills look like they are going to rise again this summer and winter, Starmer must deliver UK Government subsidies to ensure the Energy Price Cap either continues to fall or, at minimum, does not rise one penny.
“And the Prime Minister must do everything possible to reduce mortgage interest rates and food prices.
“Keir Starmer promised voters he would reduce the cost of living – but energy bills are up, inflation is up, food prices are up, and unemployment is up.
“The Prime Minister and Chancellor cannot just be commentators on this growing crisis – and the Labour Party will not be forgiven if it stands by and allows another punishing hike in costs, which will hammer families.”
Speaking at a community centre in London, Sir Keir acknowledged the worries people had about potential spiralling costs, saying: “People will sense, you will sense I think, that the longer this goes on, the more likely the potential for an impact on our economy, impact into the lives and households of everybody and every business.
“And our job is to get ahead of that, to look around the corner, assess the risk, monitor the risks, and work with others in relation to that.”
Most UK households will be protected from the impact of rising energy prices in the short-term by the energy price cap.
But rising oil prices will feed through to higher costs at petrol stations.
And the risk of high energy costs pushing up inflation means the Bank of England is now unlikely to cut interest rates this month, as had previously been expected.
The Treasury has been contacted for comment.
