The intervention comes as rising oil prices and disruption to shipping through the Strait of Hormuz increase concerns over the cost of living. It also coincides with preparations for the Government’s first autumn Budget under Prime Minister Andy Burnham, with ministers balancing new spending commitments against their fiscal rules.
The Chancellor said there is currently no significant evidence of price gouging, while stressing that regulators already have the authority to intervene should that change. His comments were made as petrol prices reached their highest level since 2022 and concerns grew over the wider impact on food and transport costs.
Healey Says Regulators Are Ready to Act Against Unfair Price Increases
John Healey said the Government would be vigilant over any signs that consumers were being overcharged as higher energy prices feed through the economy. According to The Telegraph, he wrote that ministers would be “watching closely for any suggestions that customers are being taken for a ride at the pump or the till“.
He added that businesses had so far worked constructively with the Government during the crisis and said there had been “no significant evidence” of price gouging. At the same time, he stressed that regulators have the powers to “clamp down on it if it happens”.
According to reports, the Chancellor also accepted that the Treasury could not “completely stop the squeeze” facing households and businesses because of a global economic shock linked to the conflict involving Iran. He said the Government’s role was to remain active, provide breathing space where possible and strengthen the country’s resilience against future shocks.
The warnings come as higher fuel prices continue to affect consumers. According to the RAC, cited across several reports, the average price of unleaded petrol has risen to 160p per litre, the highest level since Russia’s invasion of Ukraine in 2022. The increase follows the closure of the Strait of Hormuz, a key global shipping route for oil supplies.
Budget Pressures Grow Alongside New Cost-Of-Living Measures
The Chancellor’s comments also come ahead of his first Budget, scheduled for 28 October. According to reports, Healey has promised that the Budget will be built on “fiscal discipline” despite mounting economic pressures.
The Government has already announced a series of measures intended to ease living costs, including a reduction in VAT on energy bills, a £2 cap on bus fares through 2027 and lower business rates for pubs, social clubs and live music venues. Prime Minister Andy Burnham has also said he wants to reduce rail fares and continue efforts to lower utility bills.
According to the Financial Times, cited by several outlets, Healey and Burnham previously agreed to maintain a £23.6 billion buffer against the Government’s borrowing rules. Reports also note that higher borrowing costs, rising energy prices and weaker economic growth are expected to place additional pressure on the public finances.
Healey has written to Cabinet ministers instructing departments to identify savings by moving funding away from programmes that no longer reflect the Government’s priorities. The move follows earlier proposals by former Chancellor Rachel Reeves to encourage supermarkets to cap food prices, an idea that was later abandoned after opposition from retailers and criticism from industry figures.
