Daily Politics from the New Statesman Keir Starmer’s cost of living crisis
Mar 19, 2026
Alva Ray, political editor and commentator, breaks down how government choices shape the cost-of-living fight. She compares current challenges to past energy shocks and explains Labour’s preference for targeted help over universal subsidies. Discussion covers shifting rhetoric to resilience, the politics of visible support, and how international events can upend domestic plans.
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Starmer's Promise Meets Global Shocks
- Keir Starmer pledged to make bringing down the cost of living his top priority but external shocks limit government control.
- The Iran conflict and oil price spikes show inflation and bills can be driven by global events beyond policy levers.
2022 Energy Guarantee Set The Precedent
- The 2022 energy crisis shaped later politics: Liz Truss's unfunded universal energy guarantee spooked markets and set a costly precedent.
- That intervention, not just mini-budget tax cuts, triggered political and economic fallout.
Labour Prefers Targeted Energy Support
- Labour signals it will avoid a universal, hugely costly energy subsidy and instead plans targeted interventions.
- Rachel Reeves' Treasury is considering targeted support because 'the country wouldn't be able to afford a universal scheme.'