Politics latest: Chancellor to deliver spring forecast – Greens leapfrog Labour into second place in poll
Politics latest: Chancellor to deliver spring forecast – Greens leapfrog Labour into second place in poll
This afternoon, Rachel Reeves will present her spring economic outlook, as recent polling data shows the Green Party has surged past Labour to claim the runner-up position.
Hunt’s Economic Concerns
Former Conservative chancellor Sir Jeremy Hunt has raised alarms over the potential economic fallout from the Iran conflict, warning that escalating tensions could elevate energy prices and inflation.
“If international oil and gas prices rise by 20%, that equates to 1% higher inflation and a 0.5% drop in growth. You can’t overlook such economic effects,” Hunt stated.
He emphasized that while the government may avoid direct policy changes in the upcoming forecast, they must respond to ongoing events in Iran. Hunt also noted that the UK is more vulnerable to global energy price fluctuations due to domestic pricing being tied to international gas rates.
Starmer’s Defenses
Speaking in the Commons yesterday, Prime Minister Sir Keir Starmer defended his decision to withhold support for offensive strikes against Iran. “President Trump has expressed his disagreement with our choice, but it is my duty to assess what aligns with Britain’s national interest,” he said.
Donald Trump criticized Starmer’s approach to the conflict, claiming it reflects a “much different kind of relationship” with the UK. “I never thought I’d see that from the UK,” he remarked, adding that Starmer’s stance “was just very different” compared to allies like France and NATO.
Cabinet Minister’s Clarification
A senior cabinet minister told Sky News that the UK’s initial non-participation in the strikes against Iran was based on a legal threshold not being met. “The first wave of strikes didn’t satisfy the prime minister’s criteria, while this week’s actions are legally justified as defensive measures,” the official explained.
When asked about the UK’s role, Darren Jones reiterated that the government “were not involved in the initial action” but are now supporting defensive operations, including missile defense and base usage for US military efforts.
Impact on Cost of Living
The chief secretary to the prime minister acknowledged the conflict could “probably have some impact” on the cost of living, though the exact effects remain unclear. “We don’t know yet what that is,” he said, stressing the need to monitor the situation’s duration.
Trump’s comments about “clutching his pearls” were met with a response from Jones, who noted that “the UK makes decisions based on legality and national interest,” regardless of external criticism.
