Key facts
- Chancellor John Healey has warned retailers against price gouging.
- Healey stated that ministers are "watching closely" for signs of profiteering.
- He acknowledged that there has been "no significant evidence of so-called price gouging".
- The comments follow similar challenges from former Chancellor Rachel Reeves.
- The British Retail Consortium suggested tax increases, not retailer pricing, affect inflation.
- Healey's remarks precede a budget expected to include tax hikes and spending cuts.
Chancellor John Healey has issued a warning to retailers against price gouging as economic pressures, partly attributed to the conflict in the Middle East, continue to impact households. Healey stated that while there is currently no significant evidence of such practices, ministers are closely monitoring the situation and regulators have the power to intervene.
Healey acknowledged that businesses are also facing increased costs due to the conflict and global economic uncertainty, which contributes to inflation and threatens growth. His comments echo those of his predecessor, Rachel Reeves, who had previously challenged the private sector on price increases. The British Retail Consortium, representing major supermarkets, pushed back against the government's stance, suggesting that tax increases, such as on employers' national insurance and business rates, have a greater impact on inflation than retailer pricing. They highlighted the highly competitive nature of the grocery market.
Healey's remarks come ahead of a challenging budget expected on October 28, which is anticipated to include tax hikes and spending cuts. The government is also facing pressure to increase defense spending. Earlier in the week, Healey had sought additional savings from ministers to address cost-of-living priorities.