LONDON, May 20 (Reuters) – Britain will give its competition watchdog stronger powers to crack down on companies that it determines have unfairly raised prices during crises, finance minister Rachel Reeves said on Wednesday, as the government grapples with rising living costs.
The move formalises warnings earlier this year by Prime Minister Keir Starmer, who said the government was ready to give the Competition and Markets Authority “further teeth” to tackle suspected price gouging as energy costs surged following the U.S. and Israel’s attack on Iran.
Under a new “anti-profiteering” framework, the CMA and other regulators would gain tools for faster action to investigate sharp price rises and scrutinise company margins during supply shocks, which officials said should allow for earlier intervention.
“When global events drive up costs, working families feel it first,” Reeves said.
“I will not tolerate anyone exploiting a crisis to make a quick buck,” she said.
Regulators would also be able to publish data on how firms’ margins change during crises – a “name and shame” approach the government said was designed to deter excessive pricing. In more serious cases, ministers could grant time-limited powers to order companies to halt exploitative pricing and to impose penalties.
While energy costs have risen since the conflict in the Middle East began, industry data suggest the impact has yet to filter through to supermarket prices, with grocery inflation easing in April.
Reeves’ office has also pressed major supermarket groups to agree to voluntary caps on essentials such as bread, milk and eggs in return for regulatory concessions. The proposal has met with some opposition from the sector.
The measures underline the government’s aim to tackle rising prices, while stopping short of direct price controls.
(Reporting by Sam Tabahriti; Editing by Edmund Klamann)
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