Reeves and Miliband to call on G7 to follow UK’s energy lead
Rachel Reeves is set to call on fellow G7 nations to follow the UK’s lead in the transition to renewable and nuclear power as the unfolding energy crisis ripples through global economies.
The Chancellor is expected to urge G7 partners to commit to long-term energy security as she meets fellow finance ministers, energy ministers and central bank governors with Ed Miliband on Monday.
Reeves will encourage nations to follow the UK’s lead through boosting investment in renewable and nuclear energy as part of a mission to be less reliant on oil and gas prices.
As part of Monday’s meeting, Reeves is expected to make the case for stabilising energy markets and maintaining critical supply chains as a way of driving global economic growth.
It comes after fresh data from the Organisation for Economic Co-operation and Development, which forecast economic growth in the UK will slow to around 0.7 per cent – the second lowest among G7 nations.
The Chancellor will call for a coordinated effort across nations in order to drive the energy market’s recovery from the ongoing crisis.
The outbreak of war in Iran have caused global governments to re-evaluate energy plans as the price of oil and gas spiked throughout the conflict.
The Strait of Hormuz – a narrow waterway which sits between Iran and the horn-like tip of the Arabian peninsula – has remained blocked since the conflict began around four weeks ago leading to major consequences for the oil market with around a fifth of the world’s global supply flowing through.
Rising pressures have led to renewed calls for the government facing calls to drill the North Sea in a bid to become self-sufficient.
Keir Starmer has said he doesn’t hold legal powers to approve fresh exploration of North Sea oil and gas fields, with the decision falling in the hands of net zero secretary Ed Miliband.
Tory leader Kemi Badenoch has kicked off a campaign to “get Britain drilling” as part of her party’s proposals for bringing down the spike in energy prices caused by the war in the Middle East.
Supermarkets fire off on Reeves
On Monday, the Chancellor is also expected to point to the Labour’s mission to cut red tape in energy security and explore new powers to speed up the delivery of new nuclear capacity.
But Reeves response has faced criticism on the domestic front, as she gears up to launch a targeted energy support package for British households.
In an address to the House of Commons, Reeves said there were “contingency plans” being drafted for different scenarios where energy prices stay higher for longer.
She also took aim at companies for “profiteering” throughout the energy crisis and said the Competition and Markets Authority’s powers would be bolstered in order to “crack down”.
Supermarket bosses have hit back at the claims and are understood to have snubbed a meeting with the Chancellor, forcing the Treasury to postpone the summit that was scheduled for Thursday.
Asda boss Allan Lieghton said there was “zero credibility” in ministers’ profiteering claims against retailers and said the campaign was a “waste of time”.
Meanwhile, Marks & Spencer boss Stuart Marchin also said “policy costs” on retailers had pushed up energy bills, pointing the finger directly at the government.
Earlier this month, petrol retailers pulled out of a meeting with the Chancellor, claiming the government’s warnings against “price gouging” have led to forecourt staff being abused.