As the conflict in Iran escalates, the UK Treasury has this afternoon announced a package of emergency measures aimed at shielding British households from the economic fallout. But for millions already struggling with soaring food and energy bills, the question is whether these steps will be enough to stop the kitchen table from breaking.
The Chancellor said the escalating crisis in the Middle East had created “unprecedented volatility” in global energy markets, pushing wholesale gas prices up by a further 40% in the past week. Petrol at the pump has already hit £1.85 a litre in some northern cities. Today’s announcement includes a temporary cut in fuel duty, a freeze on energy price caps until January, and a one-off £300 payment to all households on universal credit.
But trade unions and anti-poverty campaigners say these measures fall short. The Trades Union Congress called the package “a sticking plaster on a gaping wound.” Sarah Griffiths, a single mother of two from Rotherham, told me: “I’ve already cut heating to one hour a day. Now petrol is going up again. I can’t get to work. This isn’t help, it’s a delay.”
Regional inequality will deepen. In the North East, where wages are already 15% lower than London and reliance on cars is higher, every penny rise in fuel prices hits harder. The Chancellor’s fuel duty cut of 5p per litre will save the average driver about £3.40 per tank. That’s three days of bread and milk.
The Treasury insists this is just the beginning. “We will not hesitate to go further if needed,” a spokesperson said. But with the conflict showing no signs of easing, and inflation predicted to hit 12% by autumn, families are bracing for a long winter.
The Bank of England is expected to raise interest rates again next week, adding to mortgage pain. Meanwhile, food banks are reporting a 30% surge in demand since the crisis began. The real economy is being squeezed from all sides.
I asked the Chancellor whether the government would consider windfall taxes on oil and gas companies, whose profits have doubled since the conflict started. He did not rule it out, but said any such move would be “part of a broader fiscal event” in the autumn. For the woman in Rotherham, that may be too late.
This is not a story about geopolitics. It is about the price of a loaf of bread, a litre of milk, and the dignity of a warm home. The Treasury has blinked, but the storm is far from over.
