Starmer to meet business leaders amid Hormuz blockade

Sir Keir Starmer will gather business leaders in Downing Street on Monday to address the impact of the Iran war.

The Prime Minister is expected to meet senior representatives from the energy, shipping and financial services industries amid warnings the UK could suffer serious economic damage as a result of the conflict.

Discussion is expected to focus on Iran’s ongoing blockade of the Strait of Hormuz, which has disrupted a vital shipping route for the oil and gas industry along with supplies of other products such as fertiliser.

The meeting will also hear an update on the situation in the region from Major General Richard Cantrill, the UK’s maritime operations commander.

It comes after the Royal Navy announced it was fitting the transport ship RFA Lyme Bay with minehunting drones, understood to be a move intended to provide ministers with options for securing the strait once the situation stabilises.

Downing Street said the aim of the meeting was to hear directly from businesses and discuss how the Government and private sector can work together in responding to the conflict.

With oil prices spiking and Iran continuing to blockade the vital Strait of Hormuz, Britain is now expected to face higher inflation and lower growth.

Petrol prices have already risen sharply, while disruption to the global oil supply has seen some developing countries impose restrictions on fuel usage and sparked concern shortages could spread to the UK.

Ministers have consistently played down the possibility of fuel shortages, with Education Secretary Bridget Phillipson telling broadcasters on Sunday that drivers should fill up their cars as normal.

Monday is also expected to see Chancellor Rachel Reeves join a virtual meeting of G7 finance and energy ministers and central bank governors along with Energy Secretary Ed Miliband.

Ms Reeves is expected to urge her counterparts to follow the UK’s lead and accelerate the transition away from fossil fuels, arguing this is the only way to get off the “rollercoaster” of international oil and gas markets and cut bills for good.

She is also expected to caution against resorting to protectionism as a response to disrupted supply chains and stress the importance of the G7 working together to maintain pressure on Russia, which is set to benefit from the higher oil price.

Earlier in March, Donald Trump eased US sanctions on Russian oil in a bid to reduce pressure on global markets.

In contrast to Ms Reeves’s call to move away from fossil fuels, Conservative leader Kemi Badenoch will travel to Aberdeen on Monday to repeat her call for the UK to drill for more oil and gas in the North Sea.

The Conservatives have also called for a cut in VAT on domestic energy bills and the scrapping of green taxes on power generation, saying these measures will cut bills by £200.

Ahead of her visit, she said: “I know families and business owners across Britain will be very worried about how the global energy crisis will impact them. That’s why I find it appalling that Labour’s solution is to tax working people to fund a bailout for those on benefits.

“By drilling in the North Sea and scrapping Ed Miliband’s crazy green taxes, our cheap power plan would reduce bills by £200 for everyone.”

But speaking to the BBC’s Sunday With Laura Kuenssberg, Mrs Badenoch acknowledged that drilling on its own would not directly impact bills.

Energy minister Dan Tomlinson said: “From trying to plunge our troops headfirst into war without a plan, to her complete mess of an energy policy, Badenoch is proving time and again that she’s completely out of her depth.

“Energy bills are coming down this week for families thanks to the actions of this Labour Government – action that was opposed by the Tories and Reform. While the Tories and Reform chase headlines, this Labour Government will remain focused on easing the cost of living for families across Britain.”