Healey revives ‘price-gouging’ threat as cost of living options narrow
Chancellor John Healey has revived threats against retailers over profiteering as his cost of living options have narrowed due to problems facing the country’s public finances.
Healey warned supermarkets that they would not be able to take Britons “for a ride” as the Treasury would closely monitor “any suggestion” that shoppers were suffering from large price hikes.
His messaging around the government’s support over the cost of living has also shifted slightly as he said the government “can’t completely stop” pressures facing families and Britons as a result of the Iran war and breakdown of trade across the Strait of Hormuz.
He told the Telegraph that he had faith in “British grit” and “determined hope” to pull through the economic shock.
“At home, we will be watching closely for any suggestions that customers are being taken for a ride at the pump or the till,” Healey said.
Companies’ willingness to work with the government throughout this crisis has been positive, and there has been no significant evidence of so-called price gouging, but I want to be blunt in reassuring the public that our regulators have the powers to clamp down on it if it happens.”
He also wrote in the article for the newspaper: “Most importantly, we will give people hope, wherever they come from, whatever their background, that they will live in a prosperous Britain that believes in itself once again.”
Healey follows Reeves
Healey follows his predecessor Rachel Reeves in challenging the private sector to resist large price rises even as businesses struggle to stay afloat through the Iran war.
Petrol forecourt retailers previously hit out at Reeves’ “inflammatory language” on profiteering as businesses said there was little to no evidence of price-gouging taking place as a result of the war.
Steve Gooding, director of the RAC Foundation, a charity which monitors petrol prices, pointed out that brands were more concerned about “pricing themselves out” of markets amid “stiff” competition.
Asda boss Allan Leighton also said that government claims of profiteering had “zero credibility”.
Healey’s comments on the UK economy tee up a difficult Budget on 28 October where the government is expected to announce a fresh sweep of tax hikes and potential spending cuts, with the energy price shock likely to add to borrowing.
Healey revealed earlier in the week that he had written to government ministers to find extra savings for cash to be put towards priorities on the cost of living.
The Chancellor will also come under considerable pressure to find an extra £9bn a year to fund higher defence spending given he resigned from Sir Keir Starmer’s government over the issue in June.