After a week of government warnings about the financial fallout from the war in Iran, the reality is beginning to set in for the UK. In the latest edition of BBC Newscast, Adam, Chris, and Faisal are joined by Ailbhe Rea, Political Editor of the New Statesman, to explore how the conflict could impact households and businesses across the country.
The Bank of England has cautioned that interest rates may rise this year due to a "significant energy price shock" stemming from the conflict. With economic uncertainty mounting, concerns are growing among Labour MPs about the long-term effects on public finances and the cost of living.
As global oil markets react to the instability, the UK is bracing for higher fuel prices and potential disruptions to trade. The episode delves into the broader implications for inflation, government spending, and everyday consumers.