- Rachel Reeves is facing pressure to address the economic shock caused by the US's war with Iran, which is predicted to significantly increase the cost of living.
- Ministers will hold an emergency meeting with the Bank of England governor to discuss measures to support households, with average annual energy bills alone forecast to rise by £332 from July.
- Economists warn that the energy crisis could lead to higher inflation, interest rates, and weaker real incomes, potentially forcing Ms Reeves to either abandon her borrowing rules or raise taxes.
- Conservative leader Kemi Badenoch criticised Labour's approach, suggesting it would result in higher taxes and advocating for spending cuts, tax cuts, and business support instead.
- Ms Reeves has allocated funding for households using heating oil and is developing a longer-term strategy, but has indicated that a broad energy bailout, similar to previous interventions, is unlikely due to high national debt.
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