Starmer acknowledges ‘pressure on families’ as costs rise amid Iran war

Sir Keir Starmer acknowledged the “pressure rising costs are putting on families” as conflict in the Middle East threatens to drive up prices.

On Friday the government will outline new measures to regenerate neighborhoods in the south-east of England as part of its ‘Pride in Place’ programme.

Housing Minister Steve Reed will meet local residents and community leaders to discuss efforts to protect finances as households prepare to tighten their wallets further.

Ahead of Friday’s visit, Sir Keir said: “I know how much pressure rising costs can put on families here in the South East and beyond, especially when there is uncertainty on the global stage.

“That’s why this Government is taking action to protect household budgets, keep everyday costs low and provide security at home, while listening directly to people on the issues that matter most to them.”

The Iran war has caused oil and gas prices to soar, putting further pressure on already battered household budgets in the UK and many countries around the world.

Tehran’s narrowing of a key shipping route in the Strait of Hormuz and attacks on energy facilities in the Gulf have raised concerns about the security of fossil fuel supplies.

Sir Keir said the longer the conflict lasts, “the greater the impact on the cost of living will be” and argued that “the best way forward is to reach a negotiated agreement with Iran”.

Bank of England Governor Andrew Bailey said reopening the Strait of Hormuz was “the best thing to do” to prevent interest rates from rising, following Thursday’s vote to leave interest rates unchanged at 3.75%.

Mr Bailey said further cuts were “not on the horizon”, pointing to possible increases, adding that the war in the Middle East was likely to increase energy costs for households in the summer months and put pressure on food prices.

He told LBC’s Andrew Marr: “The duration of this issue is crucial.

“I can also say very clearly that the best way to solve this situation is not monetary policy, but to solve what is happening at the source.

“Obviously reopening the Strait of Hormuz is the best thing to do. Get the energy market back to normal as it is.”

The Prime Minister has tried to focus on living costs with visits to local communities across Britain since the start of the year, but geopolitical turmoil has often diverted attention elsewhere and threatened to derail plans to cut bills.

Actions the Government has already taken to support consumers include a £53 million support package for low-income households reliant on heating oil, the cost of which has soared since the start of the war, and frozen rail fares and prescription charges.

Downing Street also said the South East will benefit from new funding for flood plans announced this week, with a £99 million investment promised to protect homes and businesses in the region.