UK’s Reeves Urges G-7 to Boost Energy Supply as Starmer Meets Businesses

Article content(Bloomberg) — UK Chancellor of the Exchequer Rachel Reeves will urge Group of Seven partners to boost domestic energy supplies and warn the recent surge in oil and gas prices is playing into Vladimir Putin’s hands.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentReeves will say Western counties need to ramp up investment in renewable energy and nuclear power to wean themselves off gas when she speaks with G-7 finance and energy ministers and central bankers in an online call on Monday. She is expected to warn Russia is benefiting from high energy prices and that cutting dependence on fossil fuels will reduce Putin’s leverage, according to a statement released on Sunday.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentPrime Minister Keir Starmer will also host business leaders from energy, shipping, banking and insurance in Downing Street to discuss the Iran conflict on Monday. They include representatives from Shell Plc, BP Plc and Lloyd’s of London. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentConcerns are mounting over a prolonged energy shock after the destruction of key infrastructure and a near-halt in tankers passing through the Strait of Hormuz following the outbreak of war across the Middle East. The conflict widened over the weekend as Yemen-based Houthi militants entered the war by launching missiles at Israel.Article contentIt threatens to squeeze households and hit UK economic growth at a perilous moment for Starmer as he tries to turnaround Labour’s dire polling ahead of the local elections in May. That is seen as a major moment of danger for the PM with heavy losses likely to stoke speculation of a challenge to his leadership.Article contentEducation Secretary Bridget Phillipson on Sunday played down the prospect of an immediate announcement on support for drivers after a surge in petrol costs since the war started. The chancellor had planned to increase fuel duty in September, but pressure is mounting from opposition parties to ditch the rise.Article contentArticle content“For now, there is no need to take action because consumers can know when they go to the pump, that freeze remains in place,” she said on Sky News’s Sunday Morning with Trevor Phillips. “Of course, we will take a view closer to the time.”Article contentPhillipson said that motorists should carry on as normal despite concerns over fuel shortages. She also warned that the conflict could affect inflation and interest rates but told the BBC that the government will “make sure that people are well supported.”Article contentThe chancellor has some breathing space before the turmoil on global energy markets hits household gas and electricity bills. The UK’s price cap will fall in April before an expected rise when it is next updated in the summer.Article contentThe Bank of England expects higher motor fuel costs to drive inflation up to 3.5% in March with traders betting on the central bank to hike interest rates to contain the threat on prices. Economists warn inflation could rise to double the central bank’s 2% target after a predicted increase in household energy bills in July.Article contentWhile US Secretary of State Marco Rubio said the war will end within weeks rather than months, experts warn a prolonged impact was likely even if there was a rapid de-escalation. BOE rate-setter Megan Greene said on Wednesday that “there will be lasting implications of this, even in the best-case scenario.”Article contentTrending Oil Gains as Iran War Escalates With Houthi Attacks on Israel PMN Business A 35-Year-Old Crypto Bro Helped Pakistan Win Over Trump World PMN Business LNG Canada signs key pipeline agreement required for phase two expansion Energy Quebec demands Air Canada’s CEO resignation in 92 to 0 vote Airlines Meet the Canadian e-bike maker who is redefining the factory floor Electric Vehicles Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Oil Gains as Iran War Escalates With Houthi Attacks on Israel PMN Business A 35-Year-Old Crypto Bro Helped Pakistan Win Over Trump World PMN Business LNG Canada signs key pipeline agreement required for phase two expansion Energy Quebec demands Air Canada’s CEO resignation in 92 to 0 vote Airlines Meet the Canadian e-bike maker who is redefining the factory floor Electric Vehicles