Britain's cost of living tsar Lord Richard Walker has called for a temporary profit cap on energy companies and petrol retailers to prevent profiteering during the current energy price crisis. The executive chairman of Iceland supermarkets, appointed to the government role last month, suggested the measure would target companies exploiting exceptional market conditions triggered by the Iran war.

Walker rejected the Green Party's proposal for a comprehensive energy price cap, warning it could lead to rationing. Instead, he advocated for a temporary profit cap to stop producers and retailers making windfall profits at consumers' expense. The government already imposes a windfall tax on North Sea oil and gas producers introduced in 2022, but Walker's proposal would extend much more widely.

Energy bills are set to rise sharply, with Cornwall Insight forecasting the typical household will pay £1,973 annually from July, a 20% increase. Meanwhile, petrol and diesel prices have already jumped following the US-Israeli invasion of Iran. Housing Secretary Steve Reed said the government is monitoring the situation hour by hour and will take necessary action, while Prime Minister Starmer prepares to hold an emergency Cobra meeting with cabinet ministers and Bank of England Governor Andrew Bailey.