UK must brace for war fallout
CAN we really be confident our Government knows what it is doing, as it faces wild turbulence in the energy markets?
Many will pray that Donald Trump is right that his war is nearing its conclusion, or that a short-term spike in oil and gas prices is worth it to get rid of Iran’s terrorist regime.
The problem is, no one can be sure if the US President will stick to this position, or what the Iranians — still lashing out wildly with rockets and drones — will do next.
If the conflict drags on for weeks or months, our fragile economy is in for another battering.
Households can already wave goodbye to the idea that Ed Miliband will save them £300 off their bills.
In the short term, families are protected until June by the energy price cap. After that, all bets are off.
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Gas prices have doubled in a fortnight and some economists warn average household bills could top £2,500 by the summer.
As one UK energy company boss said yesterday, customers could be in for a “white-knuckle ride”.
Miliband’s Net Zero madness forces us to spend billions to import energy.
His point-blank refusal to allow drilling for gas in the North Sea now looks more negligent than ever.
Britain has limited reserves and pays more for gas than any other country in Europe.
Yesterday stock market losses came at the same time as yields on massive Government debt soared again.
Despite Britain facing the very real threat of recession, Miliband is now said to be considering putting together another bailout for energy customers — like the one which followed the invasion of Ukraine.
But Sir Keir Starmer and Rachel Reeves’s failure to reform welfare spending means Britain is already drowning in debt.
Spending billions on helping to fund energy could even lead to a bond market revolt.
If it turns out Iran cannot be tamed quickly after all, a perfect storm of economic misery awaits.
Higher inflation and unemployment. No more interest rate cuts for mortgage-holders.
There is also a more urgent problem.
As Nigel Farage rightly warns on this page, fuel prices are already rocketing — up 5p for petrol and 8p for diesel since the start of the war.
Drivers are being warned by the AA to make essential journeys only.
Yet the Chancellor STILL plans to end the current 5p fuel duty cut, starting in September. By then, Britain could be in the grip of an inflation spiral.
In the coming months, the cost of living looks set to be the biggest issue in UK politics.
If the PM truly gets that working families are suffering, as he claims, he MUST order his Chancellor to keep fuel duty down.
