The new cost-of-living crisis in the wake of the conflict in Iran has hit people across the full range of incomes, with Britons scrapping travel plans, turning down the heating and looking for bargains. Nearly one in four higher earners have cancelled holidays, while around one in five Britons on low incomes are cutting down on their energy use.
Labour is now facing cross-party demands to take bold action so people throughout the country can get through this latest economic storm. More in Common found 31% of Britons who earn £100,000 or more said they had changed travel plans specifically as a result of the war in Iran; 23% had cancelled holidays and one in five had taken steps such as cutting back on heating and electricity.
Just 6% of those earning less than £20,000 had cancelled a holiday. But 22% had reduced their home energy use, 21% had cut back on non-essential spending such as eating out and shopping, and 13% had switched to cheaper brands or supermarkets.
Shadow Chancellor Sir Mel Stride said: “Britain has been left exposed to the impacts of the war in Iran because of bad choices made by Keir Starmer, Rachel Reeves and Ed Miliband. Their tax hikes and their net-zero zealotry have sent the cost of living soaring, forcing additional costs onto hardworking families.”
He pushed for drilling in the North Sea to “deliver a stronger economy and stronger country”.
Reform UK Treasury spokesperson Robert Jenrick said: “Families across the country are being crushed by a record tax burden, and this polling shows the real-world impact of Labour’s abhorrent decisions. While household bills soar, the Government is sitting on its hands and choosing to do nothing.”
Both the Tories and Reform UK have energy plans they say could slash bills by £200.
Luke Tryl of More in Common said: “The fighting in the Middle East might have paused for now, but the impact of the war on everyday life in Britain feels very real and very present.”
He warned that “Brits are losing faith in the Government’s ability to insulate the public” from the effects of the conflict, adding: “We know that Brits who are struggling are more likely to switch to the Greens or Reform.”
John O’Connell, chief executive of the TaxPayers’ Alliance, also pressed for action, saying: “Sky-high energy spikes and a 30% jump in oil prices have acted as a ‘stealth tax’ on the commute, the kitchen, and the mortgage. The Government must commit to freezing fuel duty immediately and scrapping the green energy levies to give families more breathing room.”
A Treasury spokesperson said: “We know consumers are paying more because of the war in Iran. This is not our war and that is why the British Government did not join it. The priority is de-escalation and supporting families through this crisis.
“We are already taking £150 off energy bills, extending the 5p fuel duty cut, supporting households using heating oil, boosting pay for millions, and freezing rail fares and prescription charges.”