LONDON: Prime Minister Keir Starmer summoned a national emergency meeting on Monday to deal with the economic fallout from the escalating war in Iran, as Britain's government borrowing costs surged to their highest level since the global crisis of 2008. Britain's heavy dependence on imported natural gas, persistently high inflation and stretched public finances have pushed its government bonds into a far steeper decline than those of international peers.
The so-called "Cobra" meeting — named for a secure cabinet briefing room used for national emergencies — was set to take place in the afternoon, London time. The governor of the Bank of England Andrew Bailey is due to attend, as well as Starmer's finance minister, foreign secretary and energy secretary. "I am asking for every lever that's available to the government to deal with the cost of living to be discussed at Cobra," Starmer told reporters.
Finance Minister Rachel Reeves has said it is too soon to say what the impact of the war will be on Britain's economy. She has resisted calls for sweeping cost-of-living measures for households, saying instead that more targeted support is under consideration. — Reuters
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