CBI responds to Chancellor's announcement on energy security measures

Rain Newton-Smith, CBI Chief Executive, said:

“The Chancellor is right to be considering a targeted, measured approach to the economic impact of the Iran war. This is not the time for knee-jerk, unsustainable solutions that could harm the UK’s public finances.

“However, the government must be aware that the conflict is already starting to have a serious and concerning impact on businesses as well as households. Not only those with operations and people based in the Middle East, but across sectors as supply chains are strained and energy costs surge. That affects everyone: you can’t fix the cost of living without fixing the cost of doing business - we are in this together. 

"Business was already struggling with sky-high energy costs before the Iran war. The government must urgently work with business to fix the structural causes of that if it is to tackle cost of living pressures. It is right to look to nuclear for long-term energy security and price stability, but the government can do more now, including cutting policy costs from firms’ bills and targeted support for energy efficiency.”