Rachel Reeves warns Iran warfare ‘will value UK households’ as vitality payments soar
Chancellor Rachel Reeves said the war in Iran will come at a cost to British families and businesses as the UK prepares for a further round of talks to reopen the Strait of Hormuz
We have been warned(Image: Dan Kitwood, Getty Images)
Chancellor Rachel Reeves has warned Brits that “the war in Iran will come at a cost to British families and businesses”. Reeves stated that while the extent of the costs is unknown, the Government is dedicated to offering support to those who require it.
Later this week, Britain will host additional discussions on reopening the crucial Strait of Hormuz shipping lane with a coalition of nations. The meeting will further the Government’s endeavours to reinstate freedom of navigation in the strait, which serves as a shipping route for oil and gas.
This follows the Prime Minister’s conversation with Donald Trump regarding the necessity for a “practical plan” to facilitate ships’ passage through the area, amidst suggestions that Iran intends to levy charges on vessels for transit.
US vice president JD Vance is currently in Pakistan for peace negotiations with Iran, although a 21-hour session concluded without an agreement being reached in the early hours of Sunday morning.
In an article for The Times, Ms Reeves wrote: “I am going to be straight with people… the war in Iran will come at a cost to British families and business.
“These are not costs I wanted, but they are costs we will have to respond to. As Chancellor, I have vowed that my economic approach to this crisis will be both responsive to a changing world and responsible in the national interest.
“We don’t yet know the full scale of those costs, but the immediate priority must be to ensure that the ceasefire holds.
“That is the best protection we have against higher costs at home and at the IMF meetings in Washington this week I will be working with allies on the action we can take to guarantee freedom of navigation, including the Strait of Hormuz, to keep energy supplies moving again.
“But I know rising prices are being felt now. So, we are taking action to keep costs down for families and provide support for those who need it most.”
Gas prices have soared dramatically during the continued blockade of the strait, through which 20% of the world’s oil was transported prior to the US and Israel’s decision to attack Iran.
“I know that rising energy bills are not only felt by households,” Ms Reeves added. “They are felt by business too, including the UK’s manufacturing sector that has faced uncompetitive energy prices for too long.
“So later this week I will be setting out the next phase of our plans to boost Britain’s competitiveness. I will also set out the principles that will guide how we support businesses in the months ahead.”
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