Next month’s budget made harder by Trump’s war with Iran, says UK minister

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Published: 2026-09-20T09:36:26.760Z • Permanent link

UK Chancellor Bridget Phillipson has warned that the upcoming budget will be made more difficult by the escalating tensions between the United States and Iran, following a meeting between US President Donald Trump and UK Prime Minister Boris Johnson at the UN General Assembly. Phillipson, who is also the leader of the Labour Party, made the statement during a press conference at the Houses of Parliament, where she was asked about the impact of the tensions on the UK's budget plans.

Phillipson's comments come as the UK government prepares to meet with the US in a bid to de-escalate the situation. The meeting, which is expected to take place in the coming weeks, will be attended by a team of senior officials from both countries, including Treasury Secretary Steven Mnuchin and UK Foreign Secretary Dominic Raab. The UK government has also announced plans to increase its military presence in the Middle East, in an effort to deter further Iranian aggression.

Meanwhile, the US has imposed new sanctions on Iran, which are expected to have a significant impact on the country's economy. The sanctions, which were announced by the US Treasury Department earlier this week, target several key sectors of the Iranian economy, including the energy and financial sectors. The sanctions are part of a broader effort by the US to pressure Iran into making concessions on its nuclear program.

The tensions between the US and Iran have significant implications for the UK's budget plans, which are expected to be published in the coming months. The sanctions imposed by the US are likely to have a major impact on the global economy, particularly in countries that trade heavily with Iran. The UK is one of the largest exporters of oil to Iran, and the sanctions are expected to lead to a significant decline in trade between the two countries.

Several major companies, including Royal Dutch Shell and Total, have already announced plans to reduce their exposure to the Iranian market in response to the sanctions. The move is expected to have a significant impact on the UK's energy sector, which is heavily dependent on exports to Europe. The sanctions are also likely to have a major impact on the UK's financial sector, which has significant investments in Iran.

The tensions between the US and Iran are part of a larger pattern of escalating tensions between major powers in the Middle East. The region has been a hotbed of conflict for decades, with several countries vying for influence and control. The UK has long been a key player in the region, with significant military and economic interests.