When talking to constituents many say that they are working hard but do not feel things are getting easier. That is not surprising when inflation has increased by 50 per cent since the election and everyone sees higher costs in their weekly shop. And people also feel that there is an unfairness that at the same time, the number of people on sickness and disability benefits continues to rise unchecked.
Now there is the risk that the impact of military action against the Iranian regime will have consequences for household budgets here, especially through rising heating costs. Iranian attacks on shipping in the Strait of Hormuz are disrupting fuel supplies, pushing up prices that are already being felt both at the pump and, most sharply, by people needing to restock heating oil.
Around 40 per cent of households locally are off the gas grid and many depend on heating oil to keep their homes warm. In recent weeks, there has been a major spike in prices that are charged. Orders have been cancelled at the last minute with companies instead offering to provide a lower volume of oil at a higher price. Minimum order levels are being increased. There are many such examples of sharp practices happening which have been raised with me and other MPs.
That’s why I have called on the Competition and Markets Authority and ministers to look urgently at the issues and to act against unfair practices and protect consumers. The Prime Minister has also announced £50 million of support which will be distributed through local authorities as part of their Crisis and Resilience Funds and we will look closely at how this will work in practice.
This is not just about households. Hospitality and other businesses have told me about the lack of transparency over pricing and the issues this is causing. Of course, these pressures come on top of higher national insurance costs and business rate rises which firms are already having to deal with and which have led to higher unemployment.
As well as heating oil, prices are increasing at the pump. It seems some ministers do not understand that a car or van is not a luxury but a necessity for many in rural areas. What other reason could there be for the Chancellor’s plan to increase fuel duty by 5p per litre? While the last Conservative government froze duty for 14 years and introduced the 5p cut, in her Budget Rachel Reeves said she would scrap the cut and then start increasing duty by inflation from next year.
This is the wrong time to be putting up fuel duty and adding to costs for families and businesses. Under pressure from Kemi Badenoch, it now seems the government may be rethinking the rise – they should.
The US Energy Secretary has said he thinks this military action will last for a few more weeks. Others predict it could go on for longer. Certainly, everyone is hoping that the impacts on energy prices are short-lived, but the length of military action is far from guaranteed. In such circumstances, it is incumbent on government to act to ensure markets are functioning properly and have a plan to mitigate the worst effects of price spikes – and strengthen our Armed Forces.
