London Daily

Focus on the big picture.
Thursday, Jul 02, 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 Government Confirms Rejected Asylum Seekers to Remain Amid Enforcement Challenges
UK-China Economic Talks Focus on Services Trade and High-Value Sectors
Buckingham Palace Revamp Plans Unveiled to Modernise Royal and Public Facilities
Two Dead After Light Aircraft Crash in Essex Field, Investigation Underway
Princess Diana Marked at 65 With UK Tributes Reflecting on Her Public Legacy
England Teachers Face New Pay Cap Rules for Academy School Leaders Under Education Reform
Dublin Security Alert Escalates After Stabbing and Reports of Transport Disruption
UK Government Faces Scrutiny Over £10,000 Asylum Living Cost Contribution Requirement
England Prepares World Cup Knockout Match Against Democratic Republic of Congo
Northern Rail Project Warned of HS2-Style Cost Risks by UK Parliamentary Committee
UK Tightens Asylum Rules as Most Rejected Applicants Expected to Remain in Country
UK Heat Health Alert Issued as Temperatures Expected to Exceed 30°C Across England
Halifax Brand to Disappear From UK High Streets in Lloyds Banking Group Restructuring
England Teachers Receive 6.6 Percent Pay Rise Over Two Years as Schools Warn of Budget Strain
UK Defence Spending Plan Sparks Budget Clash as Regional Infrastructure Projects Face Pressure
Inquest Continues in Northern Ireland into Death of Noah Donohoe in Belfast
UK Travel Industry Calls for Suspension of New EU Border System During Peak Holiday Season
Telegraph Media Group Acquired by German Media Firm in £575 Million Deal Completion
House of Commons Warns Northern Rail Upgrade Risks Repeating High-Speed 2 Cost Overruns
UK Transport Unions Warn of Summer Strike Action Over Pay Disputes
UK Health Secretary Calls Maternity Care Review a “Watershed Moment” for NHS Reform
Nigel Farage Faces Questions Over £270,000 Payment Linked to Gold Marketing Firm
Labour Government Faces Internal Division Over North Sea Oil and Gas Policy Direction
National Screening Committee Invites New Proposals for UK Health Screening Programmes
UK and China Hold Industrial Strategy Talks on Trade and Export Growth Opportunities
UK Defence Funding Gap Widens as £4.7 Billion Shortfall Puts Pressure on Spending Priorities
United Kingdom Faces Historic Demographic Shift as Deaths Forecast to Exceed Births in England and Wales
United Kingdom Introduces Major Motability Scheme Reforms Targeting £1 Billion in Long-Term Savings
Global Billionaire Numbers Rise 13 Percent Amid Artificial Intelligence Stock Boom
Body of Fifteen-Year-Old Boy Recovered from Manchester Reservoir
Major Rail Disruption in UK After Cows Stray Onto Intercity Tracks
UK Launches National Campaign to Reduce Water Consumption After Heatwave
Foreign Secretary David Lammy Raises Case of UK Woman Death with US Authorities
Shetland Islands Council Approves Subsea Tunnel Plans Linking Major Islands
Telegraph Media Group Takeover by German-Led Consortium Completed
Resident Doctors in England Accept Government Pay and Conditions Deal
Andy Burnham Sets Out Ten-Year Economic Vision Amid Labour Leadership Debate
Asylum Seekers in UK Face £10,000 Contribution Requirement Under New Law
UK Government Moves to Break Apple and Google App Store Dominance
New UK Steel Tariffs and Import Quotas Aim to Shield Domestic Industry
Damning Report Exposes Failures in Maternity and Neonatal Care Across England
Government Data Reveals Five Billion Pound Shortfall in UK Defence Budget
Prime Minister Keir Starmer Unveils Three Hundred Billion Pound Defence Investment Plan
UK Crime and Policing Act 2026 Comes into Force with New Justice System Reforms
UK Prime Minister Hosts NATO Secretary General Mark Rutte for Security Talks at Downing Street
UK Tightens Oversight of Emissions Trading Scheme Through New Ministerial Directions
UK Issues Statement at UN Security Council on Violence in the West Bank
UK Environment Agency Clears Illegal Waste Site in West Yorkshire After Court Action
UK Resident Sentenced for Fraudulently Claiming £30,000 in Covid Business Loans
UK Launches Taskforce to Help Young People Claim Dormant Child Trust Fund Savings
×