London, United Kingdom. British Chancellor Rachel Reeves said government support for households facing higher energy costs linked to the conflict in the Middle East would not jeopardise her plans to repair the public finances.
Fiscal stance and lessons from 2022
Reeves told lawmakers that the government must learn from past mistakes. She said the previous Conservative government increased borrowing, interest rates and inflation with its response to the surge in energy costs in 2022, after Russia’s full-scale invasion of Ukraine, by providing support to all households.
Targeted support and contingency planning
With household energy bills expected to rise from July, Reeves indicated she was working on a more targeted approach. She said contingency planning was taking place for every eventuality to keep costs down and provide support for those who need it most, while acting within the government’s fiscal rules.
Meetings with businesses and tariff review
Reeves said she would meet this week with representatives of supermarkets and banks to discuss how they can support UK consumers. She also said she had asked officials to examine where certain agri-food tariffs could be cut to help limit grocery inflation, while considering implications for domestic producers.
What measures do you think would most effectively target support to households facing higher energy bills?