Borrowing and energy bills rocket as pressure piles on Chancellor

'DOUBLE SQUEEZE' SHOCK FOR LABOUR AMID FEARS OF LENGTHY IRAN CONFLICT

- BY JONATHAN WALKER

HOUSEHOLD energy bills are set to rise by more than £300 because of Donald Trump's war against Iran, experts have warned.

The government said it is monitoring the situation "hour by hour" and stands ready to help struggling families.

But Chancellor Rachel Reeves suffered a setback last night as official figures showed public debt rising faster than expected.

Borrowing hit £14.3billion last month, £2.2bn higher than a year ago, despite predictions of a fall.

Economists said the Treasury faces a "double squeeze", with conflict in the Gulf likely to cut tax revenue by damaging Britain's economy, at the same time as placing the Chancellor under pressure to provide cash for struggling businesses and households.

Shadow Chancellor Sir Mel Stride said the borrowing rise is a result of Labour's "irresponsible choices", including a soaring benefits bill. He added: "We're saddling the next generation with the cost of their failure to live within our means.

But Chief Secretary to the Treasury, James Murray, insisted: "We know there is more to do to.

We have to stop spending £1 in every £10 on debt interest, so that more money can be spent on policing, schools and the NHS."

The unexpected borrowing rise is likely to limit Ms Reeves' room for manoeuvre after a package of support following Russia's 2022 invasion of Ukraine, including subsidies for energy bills and council tax, cost the Treasury £51bn.