London Daily

Focus on the big picture.
Tuesday, Sep 01, 2026

No 10 dismisses ‘alarmist’ warnings of lights going out amid energy crisis talks

Business secretary says energy price cap to protect consumers from sharp rises in bills ‘will remain in place’

No 10 has brushed off the idea that there could be a winter of discontent with energy and food shortages over Christmas, saying the UK is “highly resilient”.

With the government locked in talks with energy suppliers about the rising cost of gas and many firms struggling to stay afloat, Kwasi Kwarteng, the business secretary, said there was “no question of the lights going out”.

“There will be no three-day working weeks or a throwback to the 1970s,” he said. “Such thinking is alarmist, unhelpful and completely misguided.” He also insisted the energy price cap to protect consumers from sharp rises in bills “will remain in place”.

However, households are already facing a rise of 12%-13% in the cap – an average of £139 – this October, and there is no guarantee that it will not rise further next year in response to the global gas price shock.

Ed Miliband, the shadow business secretary, said many people were facing a “triple whammy” from rising energy costs, the national insurance hike, and a cut to universal credit.

The high price of gas has forced some CO2 producers to shut down, leading the meat industry to warn that there could be shortages in the coming months because the gas is needed for humane slaughter, stunning, packaging and refrigeration.

However, Johnson’s spokesman insisted the UK would not fall victim to any food shortages, despite poultry producers raising the alarm that there may not be enough turkeys and other meat for Christmas.

“We’ve got a highly resilient food supply chain in the UK, we’ve seen that throughout the pandemic, and we will obviously continue to work with industries that are facing issues to ensure that remains the case,” he said. “We will consider any contingency plans as appropriate.”


Downing Street was asked if there was a plan to help CF Industries, the UK’s biggest supplier of CO2, reopen two large fertiliser plants in Teesside and Cheshire, which produce CO2 as a byproduct.

The spokesman said: “We have a highly diverse source of supplies but, as I say, Kwasi Kwarteng has spoken to the company involved over the weekend and will consider any contingency plans as appropriate.”

Kwarteng said he was still discussing the options for addressing the stoppage of CO2 production as well as being in negotiations with energy companies, with many smaller ones at risk of failure.

One option is providing emergency loans to energy companies that take on the customers of failed suppliers. But Kwarteng also did not rule out the idea of a state-backed supplier – an idea floated by the Liberal Democrats – even though he said he wanted to “avoid” that as an option.

James Cleverly, a Foreign Office minister, also stressed the UK’s resilience when asked about the financial strain that could be caused by the sharp rise in gas prices combined with the effect of the planned cut to universal credit.

He told BBC Breakfast: “The UK economy has shown itself to be resilient. We now have vacancies in the job market, which means employers will have to offer more to fill those vacancies or retain members of staff who might otherwise move to job offers that are out there.

“That will have the good old-fashioned supply-and-demand curves, there’s an increase in demand, that will mean that wages should rise. Ultimately, of course, that is the healthy, sustainable way of making sure that people have good, decent pay packets, and that’s through employment.

“It’s absolutely right that we make sure that we match vacancies to people seeking work and watch the natural phenomenon – supply and demand phenomenon – of increasing wages through the UK economy.”

Pushed on whether the universal credit uplift would therefore be kept, he said: “It was always meant to be temporary, and it’s really important that temporary measures are temporary, because if every single response like an uplift on universal credit had to be permanent it would massively limit the flexibility and agility of governments in dealing with one-off events like the coronavirus pandemic.”

Newsletter

Related Articles

0:00
0:00
Close
Royal Mail Keeps First-Class Stamps at £1.80 and Second-Class at 91p
Church of England Prepares Formal Apology Over Historical Forced Adoptions
UK Competition Regulator Caps Veterinary Prescription Fees at £21
UK Aviation Authorities Roll Out Airspace Changes to Reduce Flight Delays
England Makes School Allergy Policies Mandatory Under Benedict’s Law
England and Wales Tighten Child Safeguarding Checks by Removing Supervision Exemption
Cornwall Geothermal Plant Begins Commercial Power and Lithium Operations
UK Inflation Holds Near 2.9% as Energy Costs Remain a Risk
UK Productivity Growth Averages 1.1% Over Two Years, Resolution Foundation Says
England Introduces Nationwide School Smartphone Ban and Uniform Limits
UK Gives Border Officers New Powers to Seize Migrants’ Mobile Phones
Green Party Wins First Westminster By-Election in Gorton and Denton
UK and EU Advance Gibraltar Border Deal Allowing Spanish Guards to Conduct Arrival Checks
Robert Jenrick Joins Reform UK After Losing Conservative Whip
Andy Burnham Faces First Prime Minister’s Questions After Labour Cabinet Overhaul
ScottishPower Recycles Nearly All Materials From Historic Hagshaw Hill Wind Farm
Millions Travel Across England, Wales and Northern Ireland for Summer Bank Holiday
Met Office Issues Yellow Thunderstorm Warnings Across Southern England
Four Arrested After Bank Holiday Stabbing Violence in Kettering
Scottish Chamber of Commerce Warns Tax and Business Costs Risk Holding Back Scotland
UK Government Launches Youth Employment Drive With Major Retailers
UK and Ukraine Advance AI and Defence Technology Partnership
Prime Minister Andy Burnham Moves to Exclude Serious Offenders From Early Release
Twelve Arrested After A66 Crash Kills Seven, Including Two Police Officers
Bank of England Governor Warns AI Investment Boom Could Trigger Global Market Correction
London Science Museum Ends Long-Running BP Sponsorship
Scottish Homeowners Prepare Valuation Challenges Over Proposed Mansion Tax
UK Prosecutors Consider Charges Against Undercover Police in Spycops Scandal
James Cleverly Leaves Shadow Cabinet to Run for London Mayor
Avanti West Coast Drivers Agree 3.6% Pay Rise, Averting Strike Action
Allianz Explores £5 Billion Takeover of British Roadside Assistance Group AA
UK Government Retreats From Plan to Unfreeze Personal Income Tax Threshold
Northern Ireland Leaders Press UK Government for Sustainable Funding Settlement
UK Health Agency Warns Nationwide Salmonella Outbreak Could Worsen
NHS Warns Autism and ADHD Assessment Costs Have Become Unsustainable
UK Rejects Moratorium on AI Data Centres Despite Energy and Water Concerns
Thames Water Creditors Offer Government Golden Share in £10 Billion Rescue Plan
UK Warns Defence Executives of Russian Assassination and Sabotage Threats
Bank of England Holds Interest Rate at 3.75% Amid Inflation Risks
UK Restricts Early Prison Release for Serious Offenders as Jails Near Capacity
Genetic Study Finds Medieval Britain’s ‘Conquest Man’ Had Scandinavian Origins
Kemi Badenoch Plans Conservative Frontbench Reshuffle After Cleverly Departure
Nissan Sunderland Plant Highlighted as Key Economic Anchor for North East England
UK Arts Report Finds Women Face Persistent Barriers to Career Progression
Private Equity Consolidation of UK Veterinary Practices Raises Consumer Cost Concerns
South West Water Ranked Worst in England for Environmental Performance
British Train Drivers Secure 3.6% Pay Rise, Averting Strike Threat
UK Prosecutors Consider Charges Against Officers in Undercover Policing Scandal
James Cleverly Leaves Conservative Shadow Cabinet to Run for London Mayor
Allianz Explores £5 Billion Takeover of British Roadside Assistance Group AA
×