The Trades Union Congress (TUC) has urged the UK government to establish an emergency national taskforce to protect jobs, support at-risk industries and prevent business closures, as the economic impact of the escalating Iran conflict intensifies.
With energy prices surging and supply chains under strain, unions warn that without swift intervention, thousands of jobs could be at risk across key sectors of the UK economy. Gas prices across Europe have surged to more than double their pre-conflict levels, while oil prices have also risen significantly, placing immediate pressure on energy-intensive sectors.
Industries including steel, chemicals and manufacturing are already facing mounting costs, with industrial hubs such as Teesside, Merseyside and North Lincolnshire particularly exposed.
CALLS FOR ‘PANDEMIC-STYLE’ ECONOMIC RESPONSE
The union body is urging ministers to adopt a coordinated response similar to the Covid-19 pandemic, when unions, employers and government worked together to protect jobs and businesses.
TUC General Secretary Paul Nowak said: “We can’t afford to sit back and wait for the damage to be done. We need to get around the table and get ahead of this crisis.”
The proposed taskforce would focus on contingency planning, safeguarding essential supplies and preventing long-term economic damage.
SUPPORT FOR JOBS & INDUSTRIES AT RISK
The TUC warned that rising energy costs are already threatening thousands of jobs, particularly in sectors heavily reliant on gas and electricity. Unions are calling for targeted government support, with conditions to ensure employers protect jobs and avoid permanent closures.
The economic impact is also being felt by households, with petrol prices and some mortgage rates already rising. The TUC says coordinated intervention is needed to ensure families are not left to shoulder the burden of the crisis.
COST OF LIVING CRISIS & WIDER ECONOMIC CONCERNS
In earlier comments, responding to the Prime Minister’s press conference last week, Nowak said: “Working people are being hit with a Donald Trump-made cost of living crisis. It’s right that the Prime Minister has acted quickly to support those most acutely affected by rising energy prices.”
This “illegal war” and “ongoing chaos” will continue to threaten living standards, Nowak pointed out. “More support will likely be needed to stave off ‘Trumpflation’. The Prime Minister is right to call for rapid de-escalation in the Middle East.”
The Government must stand ready to pull out all the stops and shield households and firms from this global shock, added Nowak. “The longer this war goes on, the greater the threat to households and firms. British workers shouldn’t pay for this conflict with their jobs.”
The warning comes as unions raise broader concerns about global economic instability and its impact on UK workers and industries.
STEPS EMPLOYERS CAN TAKE
As energy costs rise and supply chains come under pressure, employers, particularly in manufacturing and energy-intensive sectors, will need to act quickly.
Key steps employers should consider include:
- Review exposure to rising energy costs and operational risks
- Strengthen contingency and supply chain planning
- Engage early with unions or workforce representatives
- Monitor and access government support where available
- Prioritise job retention strategies before redundancies
- Communicate clearly with staff to reduce uncertainty
IMPACT ON WORKERS
Workers may begin to feel the effects of rising costs and economic uncertainty in the coming months. Early awareness and collective engagement can help workers better navigate periods of economic disruption.
Key things for workers to be aware of include:
- Rising energy and fuel prices may impact household budgets
- Some industries may face reduced hours or restructuring
- Stay informed about workplace changes and your employment rights
- Engage with union representatives where available
- Seek advice early if facing changes to pay, hours or job security
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