Chancellor Rachel Reeves warns Middle East conflict will spike UK inflation
Reeves Unveils £15bn Relief as Oil Hits $100 a Barrel
Chancellor Rachel Reeves has confirmed the Middle East turmoil is set to push inflation higher in the UK. Speaking in the Commons, she announced a £15 billion warm homes plan, handed out a £420 million discount on business electricity bills, and slashed fuel duty by 5p per litre — a desperate bid to curb the pain as oil prices soar past $100 a barrel for the first time since last year’s energy crisis.
Shadow Chancellor Mel Stride Slams ‘Gross Mismanagement’ on Energy
But Reeves faced a ruthless grilling from Shadow Chancellor Sir Mel Stride, who tore into the government’s handling of the economy. He branded the tax regime on North Sea oil and gas “ruinously high,” accusing ministers of ignoring domestic energy in favour of expensive imports.
“The government is continuing to impose ruinously high taxes on our oil and gas sector and choosing to rely on imports instead of maximising our own domestic energy supply,” Stride blasted. “It’s an incredibly short-sighted approach.”
Stride warned that sky-high oil prices would slam households and businesses alike, risking a repeat of last year’s energy disaster. Despite the criticism, Reeves refused to adjust energy taxes, opting instead for short-term relief measures amid the ongoing crisis.
Economic Storm Brewing: Will Reeves’ Plan Weather the Crisis?
The fate of Reeves’ £15bn package hinges on how long Middle East tensions drag on and whether oil prices stabilise or keep climbing. With no quick fix in sight, Britain braces for more inflation pain and economic turbulence ahead.
