Iran conflict could cost UK £35bn and risk 2026 recession
Business
The Iran conflict might cost the UK economy £35 billion and could push the country toward a recession by 2026, according to top economic researchers.
Rising energy prices are making things tougher for Keir Starmer's government, with growth forecasts now trimmed to just 0.9% for 2026.
Rachel Reeves weighs targeted energy support
If global oil prices shoot up to $140 a barrel, experts warn the UK could see inflation spike above 5%, which might force the Bank of England to raise interest rates again.
Chancellor Rachel Reeves is looking at targeted help for people struggling with high energy bills, but says broad support could make inflation worse.
With borrowing costs rising and local elections coming up, there's extra pressure on Labour to get their economic response right.