Finance Minister Announces She Will Soon Reveal a New Plan to Support Businesses Facing Much Higher Energy Bills Because of the Ongoing Conflict with Iran

On April 12, 2026, Britain's Finance Minister (also known as the Chancellor), Rachel Reeves, wrote in a newspaper article that she will explain later this week exactly how the government plans to help companies that are struggling with very high energy bills. These higher costs have come about because of the war involving Iran, which has disrupted important shipping routes for oil and caused energy prices to rise sharply around the world.

The UK is particularly affected by these problems because it relies on imported energy, and the conflict has led to disruptions in the Strait of Hormuz – a narrow sea passage through which a large amount of the world's oil normally travels. Reeves expressed disappointment that the United States and Israel do not yet have a clear long-term plan to fix the shipping issues caused by Iran closing or threatening that route.

The government has been careful not to rush into giving wide help to everyone until it better understands how the situation with the war will develop. Recent peace talks in Pakistan did not result in a full agreement, so now is the time for more specific actions. In the past, the government promised to reduce certain environmental charges (called green levies) on energy and to give some relief to factories and other businesses that use a lot of electricity. However, Reeves pointed out that UK manufacturing companies have been dealing with energy prices that make them less competitive compared to other countries for a long time now.

In her newspaper piece, she said: "Later this week I will be setting out the next phase of our plans to boost Britain's competitiveness. I will also set out the principles that will guide how we support businesses in the months ahead." She will also travel to meetings with the International Monetary Fund in Washington, where she plans to talk with other countries about making sure ships can safely pass through the Strait of Hormuz again.

Reeves acknowledged that the war will bring real costs for British families and companies, but the government does not yet know exactly how big those costs will be. For now, the most important thing is to make sure any ceasefire that has been agreed actually lasts. For ordinary households, any future help with rising energy bills (expected to increase again in July) will be given only to those who need it most, based on their income levels rather than giving the same amount to everyone. The goal is to protect public finances while still providing targeted support during these difficult times.