London Daily

Focus on the big picture.
Friday, Jul 17, 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
Tech Companies Want to Move Computing Off Your Screen and Onto Your Body
White House Teleprompter Operator Earned More Than $100,000 From Bets Linked to the President's Speeches
French Prime Minister Survives No-Confidence Vote After Controversial Budget Cuts
European Commission Opens Excessive Deficit Procedure Against France
French Senate Blocks Key Immigration Reform Measures
French Government Pushes EU Action Against Ultra-Fast Fashion Imports
French Parliament Debates Expanded Autonomy Powers for Corsica
France Reopens Autonomy Talks With New Caledonia After Months of Unrest
Bordeaux Wine Producers Seek Three Hundred Million Euro Aid Package After Export Collapse
French Farmers Block Spain Border Crossings Over Imported Food Competition
Cannes Film Festival Bans Fully Artificial Intelligence-Generated Films From Competition
TotalEnergies Shifts More Than Three Billion Euros of Green Investment From Europe to the United States
LVMH Chief Executive Bernard Arnault Presents Succession Plan for Luxury Empire
Kering Reports Fifteen Percent Revenue Drop as Chinese Luxury Demand Weakens
Sanofi Reports Positive Results From Messenger RNA Respiratory Vaccine Trials
France Places Energy Price Caps Under Review to Protect Households Through Winter
EDF Connects Two New Nuclear Reactors to France’s Electricity Grid
Mistral Secures European Commission Contract for Sovereign Artificial Intelligence Models
Renault Opens Next-Generation Electric Battery Plant in Northern France
Air France Signs Two Billion Euro Sustainable Aviation Fuel Deal to Cut Emissions
Marseille Launches Three Billion Euro Port Expansion to Strengthen Mediterranean Trade Role
French-Owned Ubisoft Announces Global Restructuring With Nearly One Thousand Job Cuts
National Railway Operator Suspends Artificial Intelligence Ticket Pricing System After Consumer Backlash
United Kingdom to Ban Sales of High-Caffeine Energy Drinks to Under-Sixteens
Home Office Designates Iranian and Russian Paramilitary Groups as National Security Threats
National Health Service Launches Housing Plan to Retain London Healthcare Workers
British Heatwave Fuels Wildfires and Emergency Evacuations in Scotland
United Kingdom and Estonia Sign Defence Agreement to Strengthen NATO’s Eastern Flank
United Kingdom Cuts Bilateral Aid to African Nations by More Than Eighty Percent
Bank of England Overhauls Banking Rules to Encourage More Lending to Businesses
United Kingdom and India Free Trade Agreement Enters Into Force, Reshaping Bilateral Economic Ties
Andy Burnham Confirmed as New Labour Leader and Prime Minister-Designate
UK Government Faces Pressure Over Extreme Heat Workplace Rules
Lewisham Council Blocks Cooperation With Home Office Immigration Enforcement
UK Parliament Investigates Growing Pressures on Scotch Whisky Industry
Teen Hackers Sentenced Over Thirty-Nine Million Pound Transport for London Cyber Attack
Ministry of Defence Acquires Scottish Fuel Terminal to Strengthen Royal Navy Operations
Bank of England Eases Rules as Economic Growth Remains Weak
Bank of England Governor Warns Andy Burnham on Britain’s Long Economic Stagnation
UK Defence Ministry Buys Scottish Fuel Terminal to Secure Naval Energy Supplies
UK Secures Access to European Defence Contracts Through Ukraine Support Deal
Bank of England Plans Easier Capital Rules to Encourage More Lending
Met Office Says England and Wales Have Already Broken Summer Heat Records
Counter-Terrorism Police Lead Investigation Into Murder of Former Minister Ann Widdecombe
UK Government Nationalises British Steel to Protect Domestic Steel Production
French National Assembly Overrides Senate to Pass Historic Assisted-Dying Legislation
Spanish Prime Minister's Wife Ordered to Stand Trial as Corruption Probes Encircle Governing Party
Zelensky Faces Kyiv Protests Over Ousting of Dynamic Ukrainian Defense Minister
Colombia Influencer Dies After Cosmetic Procedure at Unlicensed Bogota Salon
Thomas Tuchel Faces Fierce Backlash After Tactical Retreat Costs England World Cup Final Berth
×