Darren Jones, the Chief Secretary to the Prime Minister, delivered a grim verdict on the economic hit from the Iran war as the Government steps up planning to shield Brits
People in the UK could face higher costs for food, energy and flights for at least eight months after the Iran war ends, a top minister has warned.
Darren Jones, the Chief Secretary to the Prime Minister, delivered the grim verdict on the economic hit from the US-Israeli conflict with Iran as the Government steps up planning to shield Brits from being clobbered.
Tehran’s effective blockade of the Strait of Hormuz has caused energy prices to rocket around the world, and ministers have carried out worst-case scenario planning for food shortages this summer.
Mr Jones said “price pressure” was more likely than shortages on supermarket shelves during an interview with the BBC’s Sunday with Laura Kuenssberg programme. He said: “You’re going to see prices go up a bit as a consequence of what Donald Trump has done in the Middle East.
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“And quite frankly, that’s probably going to come online, not just in the next few weeks, but the next few months. There’s going to be a long tail from this.”
Asked how long higher prices – such as for petrol and diesel – might remain, he said: “I think our best guess is eight-plus months from the point of resolution that you’ll see economic impacts coming through the system.”
He added: “People will see higher energy prices, food prices and those types of issues, flight ticket prices, as a consequence of what Donald Trump has done in the Middle East.
“The Government here in the UK, the work that I’m doing with the Prime Minister is looking at all of those things and saying, ‘What can we do within our power to help people to get through those difficult times?’”
Keir Starmer is expected to chair another meeting of the crisis committee set up to deal with shortfalls on Tuesday. A contingency planning group of ministers led by Mr Jones to monitor supply chains and stock levels is also meeting twice a week.
The Government is working to ensure pubs don’t run out of beer during the World Cup, he said.
Asked if there was a beer committee to ensure there are no shortages if supplies of carbon dioxide run low, Mr Jones said: “I raised this issue because if there is a problem with jet fuel on holidays and carbon dioxide on beer the summer might be pretty depressing for people, but we’re doing everything we can to make sure that it’s not the case.”
Meanwhile, ministers are drawing up plans to make it easier for airlines to cancel flights without running the risk of losing their allocated slots if fuel shortages prevent them from flying.
Supermarkets are also working with the Government to plan for a worst-case scenario of shortages of carbon dioxide, which is used in the slaughter of some animals and in food preservation.