Chancellor warns retailers of profiteering as Iran war fuels price surge

Chancellor John Healey used a weekend column in the Sunday Telegraph to tell large retailers that the government is closely watching for any signs of profiteering as the Iran war continues to lift fuel and grocery prices. While he said investigations have not uncovered substantial evidence of price-gouging, he warned consumers against being “taken for a ride at the pump or the till.” Healey highlighted the dual threat the conflict poses to national security and household finances, noting that higher energy costs are reigniting the UK’s cost-of-living crisis.

The comments revived tensions from earlier this year when then-chancellor Rachel Reeves suggested a cap on food prices, a proposal that Marks & Spencer CEO Stuart Machin called “completely preposterous.” The British Retail Consortium responded that fierce competition among supermarkets, overseen by the Competition and Markets Authority, already keeps prices low, and suggested the focus should be on tax burdens such as national insurance and business rates. Meanwhile, the Bank of England has kept interest rates unchanged but warned that further escalation in the Iran conflict could push inflation above 4% next year, adding pressure on households.