The government is intensifying its efforts to prevent price increases and mitigate the economic fallout from the Iran war on UK businesses, as concerns over energy prices continue to mount. In its latest initiative to alleviate the damage caused by the Middle East conflict, the government has opted to collaborate directly with businesses, with the prime minister set to chair the next Middle East Response Committee on Tuesday.
New Contingency Planning Group
The committee is now supported by a newly established Contingency Planning group, comprising secretaries relevant to the situation and chaired by Chief Secretary to the Prime Minister, Darren Jones. Jones will scrutinise the committee's plans to ensure effective implementation.
Seeking a Permanent Solution
Jones stated, "This is not our war. The government made the right call to stay out of the conflict and only take defensive action to protect Britain's interests. We are acting now to prepare for and mitigate where possible the impact on our economy and domestic security as a result of the conflict." He also noted that Prime Minister Starmer wants to see a toll-free Strait of Hormuz reopened as soon as possible and is working with international partners to find a permanent solution.
The status of the waterway has been a key element of the conflict, with both Iran and the US vying for control after President Trump sent the US Navy to enforce a blockade on 13 April, which Iran argues violates ceasefire terms. The US Navy has maintained a blockade in the waterway since then, initially claiming it would only stop ships going to and from Iran. French President Emmanuel Macron echoed Starmer's desire for the waterway, reiterating his wish to see the passage opened to oil traffic "in the coming days and weeks."
Speaking at a news conference in Athens, Macron said, "We are all in the same boat, and it is not a boat we chose, if I may say. We are victims of geopolitics and we are victims of this war that started several months ago." More than a dozen countries have expressed willingness to join an international mission led by France and Britain to protect shipping in the strait when conditions permit.
Additional Measures
Next week, Jones will urge Britons to continue filling up and using their cars as usual, while confirming that shipments of jet fuel are continuing to arrive and that the CO2 supply has been bolstered to avoid a shortage. The government has already taken steps to support businesses following outcry over potential soaring bills resulting from the war.
Earlier this month, Chancellor Rachel Reeves announced an expansion of support for the most energy-intensive UK businesses. The long-promised British Industrial Competitiveness Scheme will be expanded to cover 10,000 companies, up from the 7,000 originally announced. The scheme, which the government says will cut companies' bills by up to 25 per cent, will not come into operation until next year, although in a significant concession, Reeves said support would then be backdated to this month.
