Keir Starmer recognises ‘pressure on families’ as Iran war drives up prices

Sir Keir Starmer said he recognises the “pressure rising costs puts on families” as the conflict in the Middle East threatens to drive up prices.

The government will set out new measures on Friday to revamp neighbourhoods in the south east of England as part of the Government’s Pride in Place programme.

As households brace for a further squeeze on their wallets, Housing Secretary Steve Reed will meet local people and community leaders to discuss ministers’ efforts to protect their finances.

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 acting to protect household budgets, keep everyday costs down and provide reassurance at home – while listening directly to people about what matters most to them.”

The Iran war has sent oil and gas prices soaring, putting further pressure on already-battered household budgets in the UK and many countries worldwide.

Tehran’s throttling of the key Strait of Hormuz shipping route and attacks on energy facilities across the Gulf have heightened concerns about the security of the supply of fossil fuels.

Sir Keir has said that the longer the conflict continues, “the bigger the impact on the cost of living,” arguing that “the best way forward is a negotiated settlement with Iran”.

It comes as the Bank of England governor Andrew Bailey said reopening the Strait of Hormuz is the “best thing to do” to prevent interest rates rising, after a vote to leave the rate unchanged at 3.75% on Thursday.

Mr Bailey said any further cuts are “not on the horizon” as he hinted at possible hikes, adding that the war in the Middle East will likely increase household energy costs in summer and put pressure on food prices.

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

“I would also say very clearly that the best way to solve this situation is not through monetary policy. It is through sorting out the source of what’s going on.

“Frankly, reopening the Strait of Hormuz is the best thing to do. Get the energy market back on its normal footing, as it were.”

Iran has increasingly targeted energy sites in Gulf states after Israel bombed the South Pars offshore natural gas field on Wednesday.

On Friday, Kuwait said its Mina Al-Ahmadi oil refinery had been struck by Iranian drones, sparking a fire.

The Prime Minister has sought to focus on living costs since the start of the year with visits to local communities across Britain, but geopolitical turmoil has often shifted attention elsewhere and threatens to derail his plans to bring bills down.

Action already taken by the Government to support consumers includes a £53 million support package for low‑income households who rely on heating oil, the cost of which has skyrocketed since the start of the war, and frozen rail fares and prescription charges.

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