'This will not be easy' says PM, setting out plans to counter impact of Iran war

Sir Keir Starmer has warned that combating the effects of the ongoing war in Iran “will not be easy” and “will affect the future of our country”.

Speaking at a Downing Street press conference on Wednesday, the PM set out a series of measures his government had already brought in to support people with the cost of living.

Starmer insisted the UK was “well-placed” to weather the storm as the conflict hits the economy and pushes up fuel and energy costs for consumers.

He also highlighted the “deep damage to our economy” Brexit had done, as he pledged closer alignment with the European bloc.

‘Well-placed’ to weather the storm

Starmer’s words come against a backdrop of the war in the Middle East and the continued blockade of the Strait of Hormuz, which has pushed up petrol prices to their highest level since 2023.

Addressing reporters, the prime minister highlighted a set of measures the government was already taking to address the rising cost of living.

These included cutting energy bills by over £100 per household, extending the cut in fuel duty until September, a £53 million support package for consumers relying on heating oil, and investments in renewable energy.

“I’m sick and tired of your energy bills fluctuating up and down because we’re on the international market,” he said.

“If we took control of our energy and had homegrown renewables, we could stabilise your bills.”

The Prime Minister also pointed to several other measures Labour had taken since taking office to address costs for consumers, including frozen prescription prices, rising national living wages, a rising state pension, and scrapping the two-child benefit cap.

The Prime Minister maintained that de-escalation in Iran remained the best way to bring down costs for UK consumers.

To this end, Starmer announced that later this week, the Foreign Secretary Yvette Cooper will host a meeting of international partners to discuss how best to ease tensions.

“Following that meeting, we will also convene our military planners to look at how we can marshal our capabilities and make the Strait accessible and safe,” he said.

“Whatever the pressure on me and others, whatever the noise, I’m going to act in the British national interest,” the PM said

A closer EU partnership

Starmer emphasised the need for “closer economic cooperation” with Europe, after Brexit caused “deep damage to our economy.”

He continued: “The opportunities to strengthen our security and cut the cost of living are simply too big to ignore.”

The Prime Minister announced that the UK would seek a new partnership with the EU, participating in a summit in the coming weeks to establish “economic cooperation” and “security cooperation”.

Asked whether Labour’s manifesto red lines on closer relations with Europe remain, Starmer insisted they did, denying he was choosing EU partners over the special relationship with the US.

“The manifesto commitments remain, but we made it clear in the manifesto that we wanted a closer relationship with Europe, so that is perfectly consistent with our manifesto.

“I think it is in our interest to have a strong relationship with the US and with Europe. But I do think that when it comes to defence and security, energy emissions, and the economy, we need a stronger relationship with Europe.

“I actually think that will help strengthen our relationship with the US, because successive presidents have said that Europe needs to do more on their defence and security.”

Help is coming, but not for everyone, and not yet

The chancellor Rachel Reeves had already told ITV News that further help would come, but that it would be targeted at those most in need, with the government using the following three months of cheaper energy bills, thanks to a falling price cap, to assess what was needed.

“We’re using this time we have to work through all the different contingencies and different options, for more tailored and targeted support,” she said.

“What we’ve done so far is reducing costs for everybody’s prescriptions, trains, and of course, most of all on energy bills,” she said. “But we’re looking at what else might be needed.”

“This will not be easy,” said Starmer as he set out some of the measures Labour are taking to insulate the UK from the effects of the war in Iran

Some bills set to rise

Responding to Labour’s claims of tackling the cost of living, the Conservatives argued the opposite, highlighting several bills set to rise for consumers instead.

“Despite promising to put the cost of living first, Keir Starmer and his Chancellor have piled on extra costs, leaving families almost £1,000 worse off this year,” the Conservatives said.

Conservative leader Kemi Badenoch said: “Keir Starmer and Rachel Reeves claim they care about the cost of living, but today they are hammering families with new taxes and rising charges, and businesses with new regulations and red tape.

“Since Labour came in, they have done nothing but make life harder for working families and the small businesses that power our country. Meanwhile, they hand out more and more to those on benefits.

“Labour have no plan to fix the mess they have created. The Conservatives are the only party who will get Britain working again and deliver a Stronger Economy and Stronger Country.”

Whilst Ofgem’s price cap will see consumer’s energy bills fall by around 7%, the latest predictions see these rising by around £300 in three months time when the effect of the war begins to show in energy prices.