War in Middle East ‘could wipe out growth in UK living standards’

A leading thinktank, the Resolution Foundation, has warned that conflict in the Middle East could wipe out anticipated growth in UK living standards worth £300 for typical working-age households over the coming year. The foundation's analysis suggests that a "decent" one-off increase in average living standards this year and a bumper rise for lower-income households could be reversed by rising oil and gas prices as the Iran conflict disrupts supplies. The UK relies heavily on gas from the Middle East, making it vulnerable to an effective blockade of the strait of Hormuz. Lower-income households are set for a larger rise in living standards, but all gains could be wiped out if energy prices persist. The foundation has called for the government to develop a social tariff to protect low-income families from any energy shock.

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