To ask the Chancellor of the Exchequer, what estimate his Department has made of the potential increase in the average price of goods following the redirection of ships around the Cape of Good Hope.

Since November, due to Houthi attacks, 12 international shipping companies have been forced to suspend passage through the Red Sed, causing lengthy delays and disruption to global supply chains. This has included causing insurance premiums for Red Sea shipping to increase ten-fold; although, this only contributes a small fraction of total costs passed onto the end-consumer.

These attacks therefore present a risk of increased prices for consumer goods and energy. Be assured that the Government is working closely with shipping operators to mitigate any potential impact on consumers, and the shipping and supply chain sectors are well practiced at putting contingencies in place to continue to meet their customer needs. The government continues to monitor the situation closely.

Freedom of navigation across international shipping lanes in the Red Sea must be protected. These illegal Houthi attacks are putting innocent lives at risk, threatening regional security, and harming the global economy. In all, we have seen more than 25 attacks against ships since the middle of November. This is why the UK and the US, with support from the Netherlands, Canada, Bahrain, and Australia, carried out targeted strikes on Houthi military targets in Yemen. This action was necessary, legal, proportionate and right.