Rachel Reeves urged to lift taxes on corporations taking advantage of Iran conflict | EUROtoday

Rachel Reeves has been urged to lift taxes on enterprise which can be making income because of the Iran conflict to fund emergency value of residing assist for British households.

Around 40 main UK charities, organisations and unions wrote an open letter to Sir Keir Starmer and the Chancellor, urging the federal government to deal with profiteering.

The organisations, together with Greenpeace and the National Education Union, have as a substitute proposed the federal government use the businesses’ tax income to supply direct value of residing assist, and funding within the long-term resilience of the UK economic system to make it much less prone to gas worth shocks.

The US-Israeli conflict in Iran has seen the price of oil skyrocket, with Brent Crude costs hovering previous $100 per barrel because the Strait of Hormuz stays below Tehran’s management.

The disruption to the circulation of oil via the strait has notably impacted import-dependent nations in Asia, which have just lately declared emergencies as their reserves run low.

Meanwhile, the Organisation for Economic Cooperation and Development (OECD) warned that the UK could be worst hit of any G20 nation by the Iran conflict after the 2026 development forecast was downgraded to 0.7 per cent from a earlier estimate of 1.2 per cent.

As the UK is about reap the monetary penalties of conflict within the Middle East, the open letter identified that “North Sea energy firms are set to make bumper profits.”

The End Fuel Poverty Coalition reported that for each month that vitality costs stay at ranges seen on 18 March 2026, income might end in over £200m in tax income via the Energy Profits Levy.

“It is not right that extraordinary profits, generated off the backs of ordinary people during periods of crisis, are siphoned off into private hands and corporate bank accounts”, the letter continued. “All whilst households and businesses are in urgent need of substantial support to cope with the affordability crisis.”

The signatories mentioned the conflict needs to be a “turning point for the UK” as “energy bills, fuel costs, and essentials are set to increase in costs for households and businesses already struggling with affordability after years of a cost of living crisis”.

It comes as the federal government’s personal value of residing champion, Richard Walker, urged Sir Keir to discover a income cap on vitality and gas companies.

Former Labour MP candidate Faiza Shaheen, the chief director of Tax Justice UK who coordinated the letter, mentioned: “Too often UK governments have failed to protect households and small businesses from the profiteering corporates and super-rich individuals who circle around crises like vultures.

“Spain has already frozen rents, yet our government fails to show urgency.

“The Chancellor needs to get a grip on the situation to help people already struggling, and show that this will not be yet another crisis where the rich get richer, while everyone else foots the bill.”

Simon Francis, of the End Fuel Poverty Coalition, mentioned: “Gas prices have more than doubled since late February, and households are already struggling with energy bills that have been stuck at elevated levels for five years.

“The latest global disruption is a stark reminder of the cost of our dependence on imported fossil fuels. Every time conflict or instability strikes overseas, ordinary households pay the price through their energy bills.

“The Government must act urgently to protect households from the impact of rising prices and ensure that the billions in excess profits energy companies are making during this crisis are redirected to support the people who need it most.

“Wiping out household energy debt, strengthening the Warm Home Discount and accelerating investment in home insulation would all help cushion the blow.”