The Chancellor set out the most sobering reminder yet of the challenges that the country will face in the months ahead as a result of the current war in the Middle East.

Rachel Reeves said the economic challenges as a result of the US-Iran conflict may be “significant” and contingency planning is under way for energy bill support “for those who need it most”.

However, it isn’t just energy bills that are likely to add to the squeeze many households are already feeling. The spike in energy bills and disruption to supply chains will filter through in different ways, adding to the cost of living pressures.

Recent events have left lessons behind that this Government can learn from. For example the sharp increase in energy prices in 2022 following the outbreak of war in Ukraine led to the then-Prime Minister Liz Truss rolling out blanket support for energy bills.

Chancellor of the Exchequer Rachel Reeves making a statement to MPs in the House of Commons. PIC: House of Commons/UK Parliament/PA Wire

placeholder image — Chancellor of the Exchequer Rachel Reeves making a statement to MPs in the House of Commons. PIC: House of Commons/UK Parliament/PA Wire

The Chancellor has indicated that support will be more targeted. That is understandable given the levels of debt Britain is burdened with.

There have been calls for lessons from the pandemic to be learned as well and for the Government to be proactive. But once again, the Government needs to bear in mind that the nation does not have infinite resources at its disposal. Households and individuals will also have to play a part.

The biggest lesson from recent public crises is the need to be honest with the public. While caution needs to be exercised so as to not induce panic, by setting parameters around expectations and delivering on promises quickly and honestly, the Government will show that it is in control.