British Prime Minister Keir Starmer will deliver a national address by 10:00 AM local time (2:30 PM IST) to discuss the conflict in the Middle East and the rising cost of living.
It comes after US President Donald Trump and Australia’s Anthony Albanese announced similar speeches over the next 24 hours, with the Albanians scheduled for Wednesday at 7pm AEDT and Trump at 12pm AEDT on Thursday.
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Keir Starmer has highlighted the measures his government is taking to help people cope with rising living costs, even as it faces mounting calls to introduce more support due to the economic fallout from the Iran crisis.
Starmer wrote on Facebook earlier Tuesday: “I know people are worried about global instability affecting prices at the pump and at the box office. We are working hand-in-hand with industry leaders to ensure we can provide economic stability at home and keep the cost of living low. And because of the decisions my government has made, our economy is better prepared to weather these shocks.”
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Iran’s control of the Strait of Hormuz, a narrow waterway at the exit of the Persian Gulf through which about a fifth of the world’s oil normally flows, has contributed to a rise in global energy prices.
Brent crude futures rose more than 1.8% to $105.8 a barrel after falling 3.2% on Tuesday. Meanwhile, WTI crude gained nearly 1.7% to $103 a barrel on Wednesday.
Starmer under pressure
The Iran war has disrupted a central part of Starmer’s plan to place 2026, when voters will begin to see the benefits of his Labor government, including initiatives such as raising the minimum wage and reducing energy bills announced in Chancellor Rachel Reeves’ latest budget, according to a Bloomberg report.
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Instead, his cost-of-living campaign was derailed, with rising oil and gas prices raising inflation expectations and prompting traders to expect three rate hikes this year, reversing earlier expectations of a cut, the report said.
Here’s what the UK Chancellor of the Exchequer had to say
British Chancellor of the Exchequer Rachel Reeves told the BBC on Wednesday morning that any government support to offset rising energy prices caused by the Middle East conflict would be based on household income, Reuters reported.
Household energy bills are expected to rise in July and Reeves said in March that any support would be targeted.
“We are looking at ways we can support people based on their household income,” Reeves told the BBC, adding that it was too early to say who would get help, Reuters reported.
With Starmer taking no major new measures, Britain’s main opposition, the Conservative Party, urged the prime minister to increase drilling in the North Sea to increase energy supplies, while Reform UK, Nigel Farage’s poll leader, proposed on Tuesday to scrap the duty of air passengers on short-haul flights to help reduce the cost of living, a Bloomberg report noted.
For now, the Starmer government says it is reviewing potential economic responses, noting that it is too early to fully assess the impact of the war and stressing that the existing gas and electricity price cap until July already offers immediate protection for most households, Bloomberg reported.
(With input from agencies)
