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UK chancellor warns retailers over food and fuel profiteering amid Iran war
John Healey said there was no significant evidence of price gouging so far, as the Bank of England warned risks of inflation above 4% if the conflict escalates.
UK Chancellor John Healey warned big retailers that ministers are watching closely for signs of profiteering on food and fuel, as conflict and uncertainty tied to the Iran war continue to feed into higher prices. He said the government’s goal is to prevent shoppers from being “taken for a ride” at the pump or at the till.
Healey said there was “no significant evidence” of so-called price gouging during the current crisis, but pointed to broader cost pressures from the conflict, arguing it raises costs for businesses and governments while threatening household finances. The comments come as the UK cost of living remains a central political and economic issue.
The warning follows recent guidance from the Bank of England, which kept UK interest rates on hold while warning that escalation in the Iran war could drive inflation above 4% next year. Healey said the conflict affects UK national security and economic security, linking it to inflation, growth risks, and higher costs.
The report also notes earlier proposals from the prior chancellor, Rachel Reeves, to consider a cap on food prices to limit inflation linked to the Middle East conflict, which drew backlash from retailers including Marks & Spencer chief executive Stuart Machin, who called the plans “completely preposterous.” According to the British Retail Consortium, it said the new chancellor should instead focus on how tax increases, including employers’ national insurance and business rates, affect inflation.