British Finance Minister Rachel Reeves is set to outline her approach to helping businesses cope with high energy prices later this week amid the ongoing conflict involving Iran, she said in an article published in the Sunday Times.
Reeves warned that Britain remains exposed to the economic impact of the conflict and expressed frustration over the absence of a coordinated plan from the United States and Israel regarding Iran’s potential closure of the Strait of Hormuz, a crucial route for global oil shipments.
The UK government has so far taken a cautious approach, waiting to assess how the conflict develops before announcing broad-based support for households and businesses. However, with peace talks in Pakistan ending without agreement, Reeves indicated that further details on business support measures will soon be revealed.
The government has already pledged to reduce some green levies and lower electricity costs for energy-intensive industries. However, Reeves said the UK manufacturing sector has “faced uncompetitive energy prices for too long.”
“So later this week I will be setting out the next phase of our plans to boost Britain’s competitiveness,” she wrote in the Sunday Times. “I will also set out the principles that will guide how we support businesses in the months ahead.”
Reeves is also expected to attend International Monetary Fund (IMF) meetings in Washington this week, where she said she will discuss safeguarding freedom of navigation in the Strait of Hormuz with international partners.
“The war in Iran will come at a cost to British families and businesses,” she said. “We don’t yet know the full scale of those costs, but the immediate priority must be to ensure that the ceasefire holds.”
She has previously stated that any support for household energy bills—expected to rise in July—would be targeted and based on income levels.