Iceland Food Group boss who warns inflation will hit households; urged September rate pause amid fuel-price spikes amid Iran conflict
Andy Burnham is weighing a bid to lead Labour, with editors and economists warning that markets watch his moves closely. Starmer faces scrutiny over foreign and economic policy as his successor potential emerges amid cabinet turmoil and cost‑of‑living pressures.
As of April 2026, the UK government is managing the economic and diplomatic fallout from the US-Israel war on Iran, which has disrupted global oil supplies via the Strait of Hormuz. Prime Minister Sir Keir Starmer faces strained relations with US President Donald Trump over UK non-involvement in offensive strikes. The government is implementing targeted cost-of-living support, including a £1 billion Crisis and Resilience Fund and energy price cap reductions, while urging de-escalation and closer ties with Europe.
Oil prices have risen sharply due to Iran's control of the Strait of Hormuz, pushing up UK fuel costs. Calls grow for the government to extend or cut fuel duty before planned increases in September, with opposition parties proposing relief measures amid rising petrol and diesel prices.
The UK economy has grown 0.3% in March and 0.6% in the first quarter, surprising economists as the Iran war continues to weigh on outlook. Chancellor Rachel Reeves has defended the government’s stance on economic stability, saying choices have strengthened the economy as political leadership questions persist.