Chancellor Rachel Reeves is expected to unveil a renewed push on economic growth, fiscal discipline and planning reform after next week’s elections, as Labour faces growing internal pressure.
According to the Financial Times, Reeves will use speeches in May and June to set out what allies describe as a “responsible” plan to support households and businesses through the economic fallout from the Iran conflict, including targeted help with winter energy bills.
A Treasury source said: “The war in Iran will continue to bear down on our economy and we have taken action.
"That’s why in the weeks ahead the chancellor will spell out the next phase of our plan to protect family finances and go further to deliver economic security.”
The FT reports Reeves is also expected to accelerate measures to boost growth, including closer trade ties with the EU, further planning reforms and increased use of AI.
Meanwhile, Chief Secretary to the Treasury Darren Jones warned consumers to expect higher costs ahead.
He said: “There’s going to be a long tail from this,” adding that the government’s “best guess” was prices could continue rising for more than eight months after the conflict ends.