Prime Minister Keir Starmer held a meeting with senior business leaders on Monday evening to tackle the growing energy crisis.
He warned that the Government cannot handle the situation alone and urged private sector support. Executives from Shell, BP, Centrica, and HSBC attended the Downing Street summit, where leaders discussed the potential impact on households and businesses.
Starmer stressed that families worry about rising energy bills, petrol costs, and food prices. “This energy crisis affects households across Britain. Therefore, we must work together to manage it,” he said.
Today, the Prime Minister will chair an emergency Cobra meeting with ministers and officials to review contingency plans. The meeting will focus on possible diesel, jet fuel, and fertiliser shortages. In addition, it will explore ways to help households struggling with higher living costs.
Meanwhile, reports show the Government collects an extra £20 million daily from taxes linked to energy price increases. If prices remain high over the next year, VAT, the energy profits levy, and gas sales could bring billions more. The Treasury could gain up to £8 billion.
Energy analysts have called for urgent measures, including lowering motorway speed limits and limiting domestic flights. However, Downing Street stated that the UK currently remains well supplied, and no immediate shortages are expected.
Former shipping director Lars Jensen warned that the crisis could rival the 1970s oil shocks. He added that modern Britain depends on more goods and materials, which makes the situation potentially more serious. Similarly, Sir Howard Davies cautioned that rising borrowing costs could create a £12 billion hole in public finances. He also warned that overspending on energy support might alarm international investors.
Chancellor Rachel Reeves spoke with G7 finance ministers to prevent protectionist policies abroad. At the same time, Conservative leader Kemi Badenoch criticised Starmer’s restrictions on North Sea drilling and urged faster action from the energy sector.
Starmer highlighted the Government’s focus on de-escalation after the Strait of Hormuz was blocked. “This is not our war, but we have a duty to protect British citizens,” he said.
The UK is negotiating with 35 countries to reopen the Strait and secure global oil flows. However, strained relations with Iran, Israel, and the US limit Britain’s direct influence.
Starmer emphasised that cooperation between government, business, and citizens is key. He added that diplomacy, careful planning, and collaboration remain Britain’s strongest tools to manage the energy crisis.
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