The chancellor is to set out plans to tackle price hikes driven by the war in Iran, which has seen the cost of oil and gas soar.
Rachel Reeves will deliver a statement in the Commons this afternoon after advising the prime minister of her proposals during an emergency Cobra meeting yesterday.
They include an “anti-profiteering framework” to detect and crack down on firms exploiting the Middle East crisis and help the Competition and Markets Authority root out price gouging.
It could see the regulator given “time-limited, targeted powers” after Sir Keir Starmer told MPs he wanted to give it “further teeth”.
A government spokesperson said: “We will not allow companies to exploit this crisis to hike their prices to unjustifiable levels.
“Whether at the fuel pump filling up your car or at the till paying for your groceries, we are working with regulators to make sure the price you pay is a fair one.”
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Iran poses ‘grave’ threat to UK
Ms Reeves is also set to stress the importance of Britain diversifying its energy mix, including by not letting “blockers” stop the government’s ambition for nuclear power.
She will announce that she is exploring government-backed indemnities for critical energy security projects so construction can continue if a project is legally challenged.
And there could be word on further support when it comes to energy bills, which forecasters have predicted will hit a three-year high when the current price cap ends at the end of June.
With that in mind, and continued uncertainty over how long the Iran war could last, the prime minister has said he is “equally focused” on the next price cap.
Sir Keir revealed the first suggestion the government would offer support for household energy bills through the end of the year to parliament’s Liaison Committee on Monday afternoon.
But he warned support would not go so far as it did during the energy crisis of 2022, during the brief Liz Truss premiership, due to the costs and state of the public finances.
He also reiterated the UK would not be “dragged into” the conflict in Iran, saying it is “not our war”.
The biggest impact of the war on energy costs has been the effective closure of the Strait of Hormuz in the Gulf, through which 20% of the world’s oil and liquefied natural gas typically passes through.
For more on the government’s plans, watch the video at the top of this article from our deputy political editor Sam Coates. Follow live updates on the chancellor’s speech later in the Politics Hub.
