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Red Sea shipping attacks may affect UK economy: Finance Minister

By Al Mayadeen English
Source: Agencies
6 Jan 2024 16:09
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Britain's Finance Minister Jeremy Hunt acknowledges the inevitable impact of the Yemeni Armed Forces' attack on the UK’s GDP.

Britain's Finance Minister Jeremy Hunt (AFP)

Finance Minister Jeremy Hunt said, on Saturday, that disruptions to shipping routes in the Red Sea could potentially affect the British economy by leading to an increase in prices.

In response to inquiries about the possibility of increased prices in Britain due to the attacks carried out by the Yemeni Armed Forces, Hunt said, as quoted by BBC, "It could have consequences, and we will closely monitor the situation."

In another context, Hunter said, “It is inevitable GDP will be subdued whilst interest rates are doing their job to bring down inflation. But the big reductions in business taxation announced in the Autumn Statement mean the economy is now well placed to start growing again."

This is happening as British citizens started their new year with a 5% hike in energy bills, British power regulator Ofgem announced on January 1.

UK, US to turn Red Sea into warzone, launch attack on Yemen: The Times

At the end of last month, The Times reported that the UK was preparing to join the United States and other Western countries to launch a series of air aggressions on Yemen or Yemeni-affiliated targets in the Red Sea.

According to the newspaper, an "unprecedented" joint statement is set to be released in the coming hours, issuing a warning to Sanaa to halt its operations or face a military response.

At the time, the British Defense Secretary said that if the Yemeni Armed Forces "continue to threaten lives and trade, we will be forced to take the necessary and appropriate action.”

Citing sources, the newspaper said that Grant Shapps' comments were a "last warning" if Sanaa does not stop conducting operations, noting that the Western response would likely be “limited” but “significant”.