“In Britain, the inflation caused by the war is significant. Low income households are suffering as their purchasing power is decreasing. In supporting this war, the British government is not acting in the interests of British households.”
By the Campaign for Labour Party Democracy
The war on Iran, launched by the US and Israel in February this year, has already significantly increased British households’ costs. The longer the war continues the greater will be the rise peoples’ cost of living.
The Centre for Economics and Business Research (CEBR) estimates that real incomes (that is incomes adjusted for inflation) of the average UK household will be £1,100 lower in 2026 due to this war. If the conflict continues through 2027, it is estimated household incomes will be a further £1,300 lower.
The global inflation caused by the war initially hits the prices of commodities directly produced in the Gulf, such as energy. In the UK, household gas and electricity prices rose 13% in July and Ofgem has announced they will rise a further 4% from October. As all sectors of the economy use energy to produce their outputs, inflation is currently passing into other sectors. This will progressively drive up prices across many essential products.
Trump has indicated the US objective is to impose a regime change on Iran, so there may be pauses in US military attacks, but the conflict will continue till either the US abandons that objective or it succeeds as in Iraq. In August US military operations were scaled back to replenish armaments and for Trump to play down this unpopular war in the run up to the US’ November elections. The US is currently intensifying its economic attacks on Iran by imposing new wide-ranging unilateral sanctions on countries that continue trading with Iran.
Regrettably, instead of the British government calling on the US to stop this war, it is supporting the war. Andy Burnham is continuing to permit the US to use British bases to bomb Iran, and Healey, the new Chancellor, is publicly supporting the new US sanctions – despite their imposition being outside the framework of international law.
This US led war has killed and maimed tens of thousands in Iran and in the other countries in the region that have been drawn into the conflict. Because of the war, supplies of oil and other essential products from the Gulf to the rest of the world have been slashed, forcing up prices – notably including energy and fertilisers. As a result, some Global South countries are having power cuts and will face shortages of food. In Britain, the inflation caused by the war is significant. Low income households are suffering as their purchasing power is decreasing. In supporting this war, the British government is not acting in the interests of British households.
In August the leaders of 10 UK trade unions, including the largest one Unison, wrote to Burnham urging him to oppose the war to help bring down energy and fuel costs, beginning with revoking the permission given to the US to use British bases for airstrikes on Iran. In their letter, headed: ‘Opposing the US and Israel’s war on Iran is a cost of living priority’, the unions said: ‘Ending rather than escalating this war — which the US and Israel chose to start in violation of the UN charter — is essential for the government’s affordability agenda to be a success’.
For the Labour Party to be re-elected at the next general election, and ensure the far-right does not enter government, the Labour government must successfully tackle the cost of living crisis. To assist this, it urgently needs to direct its efforts at bringing the US war on Iran to an end. This should start with Britain ending the material and political assistance it is giving the US to wage this war.
Labour Party activists, who agree with the trade leaders that this is a priority, should urge their CLP to submit a Contemporary Motion to Labour’s Annual Conference along the lines of CLPD’s model motion tilted: ‘Revoking permission for the US to bomb Iran from British bases is a cost of living priority’.
- Read the model motion and take it to your CLP: “Revoking permission for the US to bomb Iran from British bases is a cost of living priority“.
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