Rachel Reeves to unveil plan to protect Britons from ‘unfair price rises’ amid Middle East crisis
The Chancellor is set to unveil measures aimed at protecting the public from “unfair price increases” following Sir Keir Starmer’s proposal to strengthen the competition regulator’s powers against profiteering.
Rachel Reeves will outline her proposed actions in a statement to MPs on Tuesday.
The plans were first presented to the Prime Minister and other colleagues at an emergency Cobra meeting on Monday afternoon.
Downing Street said in a statement: “In a statement to Parliament, the Chancellor outlined the steps he will take tomorrow to help protect workers from unfair price increases.”
These will include an “anti-profiteering framework” that will identify and crack down on companies taking advantage of the Middle East crisis and help the Competition and Markets Authority stamp out price gouging practices.
The statement comes after Sir Kier highlighted concerns about rising oil and fuel costs.
Earlier on Monday he said he was considering giving the CMA “more teeth” so it could better protect consumers and that the Government should “stand back” on price gouging.
This could include giving regulators “time-limited, targeted powers.”
The Treasury, the Department of Commerce and Trade and regulators are working “rapidly” on what those powers might be.
A Government spokesman said: “We’re fighting alongside you to keep living costs low in these uncertain times.
“We will not allow companies to take advantage of this crisis and raise their prices to unfair levels.
“Whether it’s at the fuel pump filling your car or paying for your groceries, we work with regulators to ensure the price you pay is fair.”
Sir Keir has previously downplayed the prospect of fuel rationing, saying the Government had “no meaningful concerns about energy supply” and admitting the price “fluctuates on a daily basis” when answering questions from MPs on the Liaison Committee.
The announcement comes as latest figures show diesel prices have reached a three-year high amid the ongoing Iran conflict.
He was asked about cost-of-living czar Lord Richard Walker’s calls for short-term intervention to stop energy companies and oil retailers from profiting too much from conflicts in the Middle East.
Lord Walker wrote in the Sunday Times that he wanted the Government to set a temporary profit cap “to prevent manufacturers and retailers from taking advantage of the crisis to make windfall profits at the expense of consumers”.
Sir Keir said: “I have just seen you say that we need to discuss these proposals together urgently, but we are looking at measures against profiteering.
“I’ve already asked the CMA to look at this, I think we can look at what other teeth we can give the CMA to deal with this.
“I think there is not enough regulation in this area.
“I want to see more about price gouging or profiteering.
“We certainly need to address this issue and so we are actively considering whether the CMA will have additional powers specifically to deal with this, but we are making sure they are focused on the not-for-profit steps they can take at the moment.”
Figures from the RAC showed the average price of unleaded fuel has risen by more than 14p per liter since the end of February to 147.19p; The RAC said £8 had been added to the cost of fueling a family car, currently £81.
It was stated that the last time oil prices were this high was at the beginning of June 2024.
The situation is “much worse” for diesel car drivers; The liter price increased by 29p to 171.17p; This was the highest price since mid-January 2023.
This means a tank now costs £94; this is £16 more than at the start of the Middle East conflict.
RAC head of policy Simon Williams said: “Households are really feeling the impacts of conflict in the Middle East, given how many people rely on their cars.
“Oil has been trading above $100 a barrel for the last three days and looks set to stay there, drivers face a tough time at the pumps as the Easter holidays approach and there is no end in sight to price increases.
“With the price of petrol likely to rise above 150 pence per liter next week and the price of diesel likely to rise to 180 pence, this looks set to be the most expensive Easter on the road in 2022 since the early days of the war in Ukraine.”
The AA reported strong fuel stocks across the UK on Monday and said it had not seen any increase in breakdowns as drivers ran out of fuel and had not seen any supply concerns during patrols.
AA chief executive Edmund King said: “The AA recommends motorists continue to fuel up as normal and use sites such as The AA App to find the best prices.”
