Corporate giants profit from the war on Iran, while 3 million households skip meals

The war on Iran has led to a predicted 2026 inflation rate of up to 4%, meaning rising costs for UK households. Three million households are now skipping meals, while corporations like BP and Lloyds are making much more profit from rising inflation. Moreover, this year has seen corporations increase their profitability as costs surge.

Consumer confident plummets

A survey of consumers found confidence of -62, the lowest level since 2022 where the war on Ukraine led to high inflation. This sends demand for products and services spiralling further. Demand is already low because of high economic inequality, which is a reason banks generally aren’t lending to small and medium size businesses or corporations.

This is compounded by the survey finding that -71% of adults believe the economy will get worse in a year’s time. Consequently, corporations have faced increased scrutiny for their role in the inflationary environment.

Due to the high inflation, 43% of households are buying cheaper food and one in ten (three million) are going without some meals.

The cost of food has risen by more than 37% in five years across the board. Some essentials are even up by 69% since 2022. Meanwhile, Tesco’s operating profit has leapt from £1.8 billion in 2020/21 to £3.1 billion in 2024/25 — an increase of 72%.

Labour has done little to address the cost of living. Under pressure, the administration U-turned and removed the Tory party’s two child benefit cap. But that will actually only decrease child poverty — a direct result of the affordability crisis — by 1% as of 2029.

Mitigating the crisis

Structural changes to the system would be optimal, such as public ownership of essentials and cost-price housing to address the affordability crisis. Removing rent from utilities such as water, electricity, the national grid and trains, along with housing, would do a lot to address the cost of living crisis. In summary, reforms could ensure that corporations are not cashing in while public wellbeing.

Labour has nationalised the operating services for rail, but not the actual trains themselves, which we will still rent.

Failing a robust strategy to address the cost of living, a higher windfall tax on the increased profits of oil giants, along with one for companies like banks would ease UK households’ hardship.

Further, a government should heavily invest in public research and development in order to automate the economy through common ownership of robotics. That would be progress.

Featured image via Unsplash