Healey’s profiteering warning on food and fuel risks row with retailers
Chancellor says the government wants to prevent shoppers being ‘taken for a ride’ at the pump or till The chancellor, John Healey , has said the government is standing by to prevent the public from “being taken for a ride at the pump or the till” as the Iran war continues to hit prices. While he said there had been “no significant evidence of so-called price gouging” during the crisis, he used a…
Chancellor John Healey warned that the government was ready to protect consumers from being "taken for a ride" at both the gas pumps and checkout counters due to the ongoing Iran war impacting prices. While asserting that there had been no substantial proof of profiteering during the crisis, Healey used a weekend column to express that the Ministry of Finance was closely monitoring any indications of price manipulation by large retailers.
This stance places Healey in a challenging position as the energy crisis resulting from the long-lasting conflict in the Middle East reignites the cost of living crisis.
In a Sunday Telegraph column, Healey emphasized that the conflict affects national security, UK bases, personnel, and allies in the Middle East, but also puts economic security at risk by affecting millions of British households' financial situations. He acknowledged that many businesses have faced pressure from rising costs as well, adding that conflict and uncertainty raise inflation, threaten growth, and increase costs for businesses and governments.
The comments about profiteering have the potential to spark a new conflict of words between the government and retailers. Earlier this year, when Rachel Reeves, who was then the Chancellor, proposed limiting inflation caused by the Middle East conflict by capping food prices, supermarket executives vehemently opposed the plans. Stuart Machin, the CEO of Marks & Spencer, referred to the proposal as "completely preposterous."
The British Retail Consortium suggested on Sunday that the new Chancellor should instead focus on addressing the impact of tax increases, such as employers' national insurance and business rates, on inflation. Andrew Opie, representing major retailers including Sainsbury's, Tesco, and Asda, stated that supermarkets operate competitively, delivering the most affordable food in Western Europe.
The CMA, the government's independent competition regulator, has repeatedly found that intense competition between retailers, not government intervention, has kept food prices as low as possible.
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