The Chancellor has to come up with a plan to tackle price rises caused by the war in Iran, which has sent oil and gas prices soaring.
Rachel Reeves Will make a statement in the Commons this afternoon after giving advice Prime Minister of their proposals during an emergency Cobra meeting yesterday.
These include an “anti-profiteering framework” to detect and crack down on companies taking advantage of the Middle East crisis, and the Competition and Markets Authority to help root out price gouging.
The regulator could be given “time-limited, targeted powers” after Sir Keir Starmer told MPs he wanted to give it “further powers”.
A government spokesperson said: “We will not allow companies to take advantage of this crisis to raise their prices to unreasonable levels.
“Whether when filling up your car at the fuel pump or paying for your groceries, we are working with regulators to make sure the price you pay is fair.”
Read more from Sky News:
Iran poses a ‘serious’ threat to Britain
Ms Reeves is also set to stress the importance of diversifying Britain’s energy mix, including not letting “disruptors” hold back. Government’s ambition for nuclear energy.
She will announce that she is exploring government-backed compensation for critical energy security projects so that construction can continue if a project is legally challenged.
And there could be talk of more support when it comes to energy bills, which forecasters have predicted will reach a three-year high When the current price range expires at the end of June.
With this in mind, and uncertainty remaining over how long the Iran war could last, the Prime Minister has said he is “equally focused” on the next price range.
Sir Keir made the first suggestion to Parliament’s Liaison Committee on Monday afternoon that the Government would offer support for household energy bills by the end of the year.
But he warned that due to costs and the state of public finances, support would not go as far as it did during the brief Liz Truss premiership, amid the 2022 energy crisis.
He also reiterated that Britain would not be “dragged” into the conflict in Iran and said it was “not our war”.
The war’s biggest impact on energy costs is effectively closing the Strait of Hormuz to the Gulf, through which 20% of the world’s oil and liquefied natural gas typically passes.
For more information about the government’s schemes, watch the video at the top of our article Deputy Political Editor Sam Coates. Watch live updates on the Chancellor’s speech later political center.
