Chancellor monitors prices amid Iran conflict
Chancellor John Healey has stated he will be “watching closely” to protect the public from price gouging at petrol stations and in supermarkets as the conflict in Iran continues to affect prices, reports BritPanorama.
Mr Healey acknowledged that “we can’t completely stop the squeeze” on families and businesses, as Prime Minister Andy Burnham aims to focus on addressing the cost of living since assuming office two weeks ago.
However, he indicated his readiness to step in to safeguard consumers from unfair price increases.
“We’ll be watching closely for any suggestions that customers are being taken for a ride at the pump or the till,” he remarked.
“Companies’ willingness to work with the Government throughout this crisis has been positive, and there has been no significant evidence of so-called price gouging, but I want to be blunt in reassuring the public that our regulators have the powers to clamp down on it if it happens,” Mr Healey wrote in The Telegraph.
The former defence secretary mentioned he has communicated with international counterparts in the early days of his chancellorship regarding their collective economic response to the ongoing conflict in Iran. He stated: “Being frank, we can’t completely stop the squeeze that families and businesses will feel with a global shock of this scale.”
“What we can do is be an active, hands-on Government that puts British interests first – giving breathing space to those feeling financial strain and making our country more resilient so we can better weather these shocks in the future.”
Since the beginning of Mr Burnham’s premiership, he has announced a series of measures aimed at reducing cost-of-living pressures, including a cut in VAT on energy bills and capping bus fares at £2 until 2027.
The Prime Minister reiterated on Sunday that he intends to take further actions to lower utility bills and rail fares.
“I think rail fares are too high, outrageously so in some instances. So that’s something that’s in my sights,” he commented.
“I mentioned VAT and electricity bills. It’s a short-term measure at this moment, but let’s see where we can go with that,” he told the Sunday Mirror.
The array of measures Mr Burnham has introduced, including cutting business rates for pubs and expanding technical training in schools, is expected to necessitate additional spending.
Mr Healey assured that his first budget would be “built on fiscal discipline” and revealed this week that it will take place on October 28.
He and the Prime Minister have communicated to the Cabinet that there will be no new funding available for the fresh commitments, as stated in a letter to The Times.
Departments must be prepared to “shift funding away from unproductive or legacy programmes that no longer reflect this administration’s priorities,” he added in the correspondence.
