Rachel Reeves to unveil cost-of-living rescue package as Iran war drives prices up
Rachel Reeves will unveil a cost-of-living package next week – after indicating she might abandon a fuel duty increase later this year.
The Chancellor will outline plans for the assistance households and businesses will receive as the Iran war drives up prices.
She has directed Treasury officials to develop a package of measures to support families.
However, it is understood that assistance with energy bills will be targeted to avoid further increasing inflation.
The energy support is also likely to begin after the summer months when households consume less energy.
Reeves has been under immense pressure to abandon a 5p fuel duty increase scheduled for September.
She told The Sun last month that she would do “everything in my power” to protect households and businesses by preventing a rise in pump prices.
Fuel costs have soared after the Strait of Hormuz was effectively closed during the conflict, halting oil and gas transport.
Figures this week showed that the economy grew by 0.6 percent in the first six months of the year.
Amid a Labour leadership crisis, the Chancellor said that now is not the time to “put our economic stability at risk.”
She added: “To do so would leave families and businesses worse off.”
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