Sarwar and Swinney battle over Iran war support – Daily Business

Petrol prices have risen over the energy crisis (pic: DB Media Services)

Scottish Labour leader Anas Sarwar has gone head-to-head with First Minister John Swinney over support for businesses and households suffering the consequences of the Iran War.

Mr Sarwar said he would make £100 million available within the first 100 days of a Scottish Labour government.

His support package came as SNP leader John Swinney accused the Prime Minister of dithering as Britain faced higher costs from the Middle East conflict.

Cornwall Insight’s latest forecast predicts the bill for households using a typical amount of gas and electricity will rise by £288 a year – or 18% – compared with the April price cap.

The average price of petrol is up 25p a litre since the start of the war, while diesel has risen by 48p. Both are at their most expensive level in over three years.

Fertiliser prices have risen as supplies of key ingredients made in the Middle East have been disrupted.

Inflation for farm running costs is more than 7% higher this March, compared with last March, according to data from independent consultants the Andersons Centre.

Last week jet fuel hit an all-time high of $1,838 (£1,387) per tonne, compared with $831 before the war began. Many Asian airlines, and others globally, have responded by cutting flights and raising fares.

Some, such as British Airways owner IAG, have so far been able to hold off on changes because they are buying fuel at a price fixed before the war.

Air passengers are being warned further ticket hikes and cancellations are likely.

The cost of flying is likely to rise (pic: Edinburgh Airport)

Mr Sarwar said he would not “sit back and let Scottish households and businesses pay the price” for the instability.

The package would include crisis loans for energy-intensive businesses, bulk buying fuel to help drive down prices at the pumps, and emergency grants or interest-free loans for households which are struggling.

Mr Sarwar said a Scottish Labour government would also convene a summit with supermarkets and other partners to drive down the cost of staple items and help protect family budgets in the face of continued instability.

A “national income maximisation drive” would see civil servants redeployed to make sure people get the support they are entitled to but are currently missing out on, such as help with childcare costs, pension credit and other financial support.

“If the instability continues we are not going to sit back and let Scottish households and businesses pay the price,” he declared.

John Swinney and Anas Sarwar have pledged help with rising costs

“Leadership is about finding solutions to problems. All John Swinney has done in the face of this crisis is point the finger somewhere else instead of coming up with a plan to help Scots struggling right now.

“Scottish Labour will not stand by and let Scottish businesses go to the wall, put Scottish jobs at risk, and force families to pay the price for the actions of the Iranian regime, Donald Trump and Benjamin Netanyahu.

“I’m standing to fix the mess, get the basics right and build a better future for Scotland. That means emergency action in our first 100 days if this crisis does not ease.

“We will provide crisis loans to protect jobs in businesses hit by rising costs, we will bulk buy fuel to help drive down prices at the pumps, and we will provide emergency grants or interest-free loans to households depending on their circumstances.

“We will also use the power of government to maximise people’s incomes, so families get the support they are entitled to and do not miss out on help at the very moment they need it most.

“Scotland needs a government that acts, not one that moans.”

Mr Swinney has urged greater intervention by the Prime Minister to help those currently facing higher costs. “My message today is very simple, and it’s a clear message to the United Kingdom government – my message is stop dithering,” he said.

He has called on the UK government to scrap its plans to increase fuel duty in September, along with VAT on energy bills.

He accused Sir Keir Starmer of “standing idly by as the energy crisis deepens” – with new figures showing Scots being hit hardest at the pumps.

He added that the Scottish people fully understand that “Westminster and the UK Labour Government have the powers to act – they are making the political choice to do nothing.

“If Keir Starmer choses to do nothing to help people with the price at the pumps – the Labour Party will deservedly pay the price on polling day.” 

UK Foreign Secretary Yvette Cooper says the UK has been working for a “swift resolution” to the conflict and for a plan for what will come after.

She says “most important of all for us” is the “reopening” of the Strait of Hormuz, adding that no country can close such a route as it “goes against the fundamental principles of the law of the sea”.

Blair group backs North Sea drilling

The Government should already be backing new licences for drilling the Jackdaw gas field and the Rosebank oil field in the North Sea, according to Sir Tony Blair’s think tank.

The Tony Blair Institute says the Middle East crisis has highlighted the UK’s vulnerability to shocks in the global fossil fuel market and that ministers should accelerate domestic oil and gas production to help reduce exposure.

On coming to office, Labour banned new North Sea oil and gas licences, although ministers have said oil and gas will remain part of the energy mix for years to come and extraction near existing fields will still be allowed.

Industry leaders and energy experts have called for the Government to drop its ban and allow the two projects to go ahead amid spiking fossil fuel prices.

Jackdaw protest in Edinburgh (pic: DB Media Services)

The TBI report says: “The war in Iran has focused the nation’s attention on energy supply and prices, but the UK is not facing a temporary energy shock.

“It is operating in a world where volatility is structural and where energy security can no longer be treated as a narrow question of supply.”

Dr Douglas Parr, policy director for Greenpeace UK, said: “If Blair has any credibility left after his last few, widely ignored reports, he’s clearly decided it isn’t worth hanging on to.

“Rosebank and Jackdaw, cumulatively, could reduce our gas imports by a couple of percent at best. But the gas they produce would be sold to us at the same international market rate as the rest of it, and would not make electricity prices any cheaper.

“As the University of Oxford have shown, a renewables-based system would be better in terms of cost and insulation from fossil fuel price shocks.

“It’s amazing the transparent nonsense that our ex-PM is willing to put his name to these days, and difficult to imagine who might feel they’re getting their money’s worth from this.”

Housing pledge

Mr Swinney will today set out a package of help to support people into home ownership – including measures to give renters new rights to buy the home they live in.

Campaigning in Inverness, the First Minister will announce that the SNP Government will introduce new legislation to give private renters a period of first refusal to purchase the property they rent at a fair market price if the owner chooses to sell.

The SNP Government will also provide up to £10,000 in help towards a deposit for first time buyers – recognising that many young people are paying more in rent than they would on a mortgage.

The First Minister said: “Too many young people are being locked out of home ownership as a result of the cost of living crisis.  So many people are stuck paying more on rent than they would on a mortgage – and with costs just going up and up, there is nothing left over at the end of the month to save for a deposit.

“And that is made all the more difficult when private renters find themselves having to leave their home because the owner has decided to sell up.  As well as forcing people to upend their whole lives, it also has serious financial implications. 

“That is why I will give renters the right to first refusal on the home they live in – at a fair market rate – if the owner of the property decides to sell.  This will help people to put down roots and to feel secure in their own home – without the risk of being turfed out against their will.

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