London Daily

Focus on the big picture.
Friday, Mar 20, 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
UK and Nigeria Reach Agreement to Accelerate Return of Irregular Migrants
UK Sets New Aid Priorities Following Significant Budget Reductions
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
UK Plans 50% Steel Tariffs in Bold Move to Protect Domestic Industry
Iran Conflict Sends Shockwaves Through UK Economy as Energy Costs and Trade Risks Surge
UK Health Officials Warn Kent Meningitis Outbreak Still Active as Cases Continue to Rise
UK Climate Progress Faces Scrutiny Over Reliance on Carbon Accounting Methods
UK Deploys Advisers to United States to Shape Plan for Reopening Strait of Hormuz
Amazon Bets on AI-Driven Alexa Upgrade to Revive UK Smart Speaker Market
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
GB News Faces Regulatory Complaints Over On-Air Remarks on ‘Genocide’ Claims
UK Signals Expanded Support for Gulf Allies as Iranian Attacks Intensify Regional Threats
UK VAT Decision Opens Path for Potential Refunds to U.S. Biopharma Firms
UK and Canada Advance ‘Middle Power’ Strategy to Shape Global Influence Beyond Superpowers
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Holds Back on Hormuz Escort Mission While Continuing Talks with Allies
TrumpRx Pricing Platform Faces Scrutiny as Some Medicines Remain Costlier Than in the UK
UK, Netherlands and Finland Explore Joint Defence Investment Bank to Boost Military Capability
Deadly Meningitis Outbreak in Kent Raises Alarm as Cases Surge and Emergency Response Expands
UK Security Adviser Viewed US-Iran Nuclear Deal as Within Reach Before Sudden Escalation
UK Prime Minister Urges Continued Focus on Ukraine Amid Escalating Iran Conflict
UK Introduces New Safeguards to Shield Lenders from Bank Run Risks
UK Promotional Products Market Surpasses £1.3 Billion as Demand Strengthens in 2025
Reeves Pushes for Deeper UK-EU Economic Ties to Revive Growth
UK Security Adviser Saw No Imminent Iranian Nuclear Threat Days Before War Erupted
France Signals Warm Welcome for UK Return to EU Single Market Amid Renewed Cooperation Talks
UK Defence Official Criticises Boeing Over Delays to E-7 Wedgetail Programme
UK Urged to Secure Quantum Talent as Minister Warns Against Repeating AI Setbacks
UK Mayors Set to Gain New Spending Powers Under Reeves’ Fiscal Devolution Plan
Western Allies Urge Restraint as Israel Weighs Expanded Ground Operation in Lebanon
Trump Warns NATO Faces ‘Very Bad’ Future Without Stronger Allied Support in Iran Conflict
UK Minister Says Britain Not Bound to Support Every Demand From U.S. President
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
UK Set to Introduce Steel Tariffs of Up to 50 Percent in New Industrial Strategy
European Governments Decline Trump’s Call to Send Warships to Reopen Strait of Hormuz
Fears Over Iran Conflict Weigh on UK Consumer Confidence
Starmer Says UK Working With Allies on Hormuz Shipping Plan After Trump Raises Pressure
Iran War and Energy Shock Shake Britain’s Economy and Political Debate
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
King Charles and Queen Camilla Share Personal Tributes to Their Mothers on UK Mother’s Day
Prince William Honors Princess Diana with Mother’s Day Tribute
UK Economy Stalls in January as Households Cut Back on Eating Out
AI-Generated Singer Becomes Viral Voice for Iranians With New Anthem
×