Rachel Reeves is set to address the House of Commons today with a package of measures designed to shield British consumers from soaring prices triggered by the ongoing conflict in Iran.
The Chancellor will outline her proposals following discussions with Sir Keir Starmer at an emergency Cobra meeting held on March 23.
Central to the Government’s response is an "anti-profiteering framework" aimed at identifying and penalising businesses seeking to capitalise on the Middle East crisis.
The conflict has sent oil and gas prices surging, placing considerable strain on household budgets across the UK.
Ms Reeves’s statement comes after the Prime Minister indicated for the first time ministers are examining options to assist families with their energy costs through to the end of 2026.
The Competition and Markets Authority (CMA) could receive "time-limited, targeted powers" to root out price gouging after the PM told MPs he wished to give the regulator "further teeth".
Ministers are seeking to ensure consumers are not exploited at petrol stations or supermarket checkouts.
A Government spokesman said: "We will not allow companies to exploit this crisis to hike their prices to unjustifiable levels."
The Chancellor will unveil crackdown on crisis profiteering as energy prices surge amid the Iran conflict
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They added: "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."
The measures represent a response to concerns some firms may be using the geopolitical turmoil as cover for price increases.
Beyond tackling profiteering, the Chancellor is expected to emphasise Britain’s need to broaden its energy sources and reduce reliance on volatile international markets.
Ms Reeves will signal her intention to prevent "blockers" from impeding the Government’s nuclear power ambitions.
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The Treasury is examining Government-backed indemnities for energy security projects
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Such guarantees would allow construction work to proceed even when developments face legal challenges.
The move reflects a push to accelerate domestic energy production at a time when global supply chains remain under pressure.
The effective closure of the Strait of Hormuz has underscored Britain’s exposure to international disruption, with roughly a fifth of the world’s oil and liquefied natural gas typically transiting through that route.
Forecasters predict household energy bills will reach a three-year peak when the current price cap expires at the end of June.
Sir Keir Starmer has said he does not want Britain dragged into the conflict
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With uncertainty surrounding the duration of the Iran conflict, Sir Keir has indicated he is "equally focused" on the subsequent price cap period.
The PM told Parliament’s Liaison Committee on March 23 the Government is considering support for household energy bills extending through to the end of the year.
However, he cautioned any assistance would fall short of the measures implemented during the 2022 energy crisis under Liz Truss, citing fiscal constraints and the condition of the public finances.
Sir Keir also reiterated Britain would not be "dragged into" the Iranian conflict, declaring it is "not our war".
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