Chancellor Rachel Reeves has warned Parliament that the ongoing crisis in the Middle East is likely to contribute to higher inflation in the UK. She highlighted concerns over rising energy prices and supply chain disruptions as key factors that could impact the cost of living. Reeves emphasized the need for careful economic management amid global uncertainties, noting that any escalation in regional tensions could further strain domestic price levels.
The Conservative Party responded by urging the government to pause its planned increase in fuel duty, arguing that such a move would add pressure on households already facing financial challenges. They contended that maintaining current fuel taxes would provide short-term relief during a period of heightened economic risk. The debate reflects broader concerns about balancing fiscal policy with the need to protect consumers from external shocks.