The energy price cap hike is just the start of Labour’s problems

As far as the economy goes, Sir Keir Starmer has enjoyed something of a golden honeymoon. True, he has had riots to deal with, but economic growth has been stronger than many anticipated, while a small uptick in the Consumer Prices Index (CPI) allowed the Bank of England to reduce interest rates earlier this month. Everything appeared to be going in the right direction – until this morning, that is. Ofgem have announced that the energy price cap will rise in October by 9 per cent, adding an average of £149 to annual bills. While a rise was expected, this is a substantial rise at a time when inflation seemed to be back under control.

A 9 per cent jump will not take energy bills to anywhere like where they were in late 2022 and early 2023.