Uploaded May 2026 | Updated September 2026, 3 weeks ago
The closure of the Strait of Hormuz is not just another geopolitical shock. It is the beginning of a physical supply crisis that could transform the British economy and everyday life.
Oil, gas, fertiliser and food supplies are all under threat. This is not a banking crisis like 2008, and it is not a pandemic like 2020. This time, the problem is scarcity itself.
In this video, I explain why inflation caused by shortages cannot be solved with interest rate rises, why the Bank of England is going to use the wrong tools in this crisis unless it's told not to, and why rationing, price controls, and direct government intervention in the economy may become unavoidable.
I look at what this could mean for fuel prices, food supplies, mortgages, unemployment, social care, housing and the wider economy.
I also explain why banks could once again require public rescue, why governments may need to support strategic industries directly, and why conventional neoliberal assumptions may no longer work in conditions like these.
This is not an argument for panic. It is an argument for preparedness. Markets alone cannot manage a crisis created by shortages of essential goods. If governments fail to plan now, the social and economic consequences could be severe.
That's why wartime lessons from the past matter again. Rationing and price controls worked in WWII, and they might be needed now, when fairness will be essential to maintaining public trust during a period of major disruption.
The question is no longer whether the UK can afford to respond as I suggest is necessary. The question is whether it has the political courage to do so, because the real risk in this crisis is not that the government runs out of money. It is that it fails to use the powers it already has before events begin to spiral out of control.
Take a look at the poll below: youtube.com/post/UgkxNEWZg7jWGZxVLY8-R3aGD_0KnHGC6Ymy
TRANSCRIPT
A transcript for this video is available at: taxresearch.org.uk
IF YOU WANT TO WRITE TO YOUR MP ABOUT ISSUES IN THIS VIDEO
If you want to write a letter to your MP on the issues raised in this blog post, there is a ChatGPT prompt to assist you in doing so, with full instructions, here. taxresearch.org.uk/Blog/2025/06/20/chatgpt-prompt-for-a-letter-to-your-mp
HOW TO SUPPORT US
Please consider donating: ko-fi.com/taxresearch
ABOUT RICHARD MURPHY
Richard Murphy is Emeritus Professor of Accounting Practice at Sheffield University Management School. He is director of Tax Research LLP and the author of the Funding the Future blog. His best-known book is ‘The Joy of Tax’.
This video was edited by Thomas Murphy.
RICHARD MURPHY ON BLUESKY:
https://bsky.app/profile/richardjmurphy.bsky.social
OR
ON MY BLOG: taxresearch.org.uk/Blog
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INTRODUCTION: youtube.com/watch?v=HdHsRPy3060
PLAYLISTS:
The Wealth Series
youtube.com/playlist?list=PLvRueM6wBgobQLeyZYAagFDMjEFTKbhRD
Ecenomics
youtube.com/playlist?list=PLvRueM6wBgob54Gs-fOL-8OAQ-IpduwB4
Britain
youtube.com/playlist?list=PLvRueM6wBgobwTT4ATvJjsf8OO6S7wD10
Tax
youtube.com/playlist?list=PLvRueM6wBgoaMni_12J6ULp3yUJisUZoY
MMT
youtube.com/playlist?list=PLvRueM6wBgoZ6jvRGSW5YXu8qogE6aClX
Money
youtube.com/playlist?list=PLvRueM6wBgoYnLk1c7syTvoIo8bKYUs5m
Climate Change
youtube.com/playlist?list=PLvRueM6wBgob4_wsYaVivWd2WumpPLYwJ
USA
youtube.com/playlist?list=PLvRueM6wBgoYYd3dSyU2Oyl3x7bWJOP7H
Labour
youtube.com/playlist?list=PLvRueM6wBgoa-KhzG-fnjDSg1WROL1zMw
The Trump Administration
youtube.com/playlist?list=PLvRueM6wBgobz41-GLimTho27A3flVWQx
#richardmurphy #richardjmurphy #economy #economics #accountancy #accounting #tax #uktax #ukeconomy #greennewdeal #uk #money #economy #politics #government #tax #labour #health #life #StraitOfHormuz #GlobalCrisis #OilShock #EconomicCrisis #Inflation #SupplyChainCrisis #UKPolitics #WorldEconomy #BankOfEngland #Rationing #PriceControls #EnergyCrisis #FoodShortages #BankingCrisis #SocialCare #UniversalCredit #MortgageCrisis #HousingCrisis #Nationalisation #Keynes #ModernMonetaryTheory #MMT #FiscalPolicy #PoliticsOfCare #DonaldTrump #IranWar #EconomicPolicy #CostOfLiving #PublicServices #FinancialCrisis
The closure of the Strait of Hormuz is not just another geopolitical shock. It is the beginning of a physical supply crisis that could transform the British economy and everyday life.
Oil, gas, fertiliser and food supplies are all under threat. This is not a banking crisis like 2008, and it is not a pandemic like 2020. This time, the problem is scarcity itself.
In this video, I explain why inflation caused by shortages cannot be solved with interest rate rises, why the Bank of England is going to use the wrong tools in this crisis unless it's told not to, and why rationing, price controls, and direct government intervention in the economy may become unavoidable.
I look at what this could mean for fuel prices, food supplies, mortgages, unemployment, social care, housing and the wider economy.
I also explain why banks could once again require public rescue, why governments may need to support strategic industries directly, and why conventional neoliberal assumptions may no longer work in conditions like these.
This is not an argument for panic. It is an argument for preparedness. Markets alone cannot manage a crisis created by shortages of essential goods. If governments fail to plan now, the social and economic consequences could be severe.
That's why wartime lessons from the past matter again. Rationing and price controls worked in WWII, and they might be needed now, when fairness will be essential to maintaining public trust during a period of major disruption.
The question is no longer whether the UK can afford to respond as I suggest is necessary. The question is whether it has the political courage to do so, because the real risk in this crisis is not that the government runs out of money. It is that it fails to use the powers it already has before events begin to spiral out of control.
Take a look at the poll below: youtube.com/post/UgkxNEWZg7jWGZxVLY8-R3aGD_0KnHGC6Ymy
TRANSCRIPT
A transcript for this video is available at: taxresearch.org.uk
IF YOU WANT TO WRITE TO YOUR MP ABOUT ISSUES IN THIS VIDEO
If you want to write a letter to your MP on the issues raised in this blog post, there is a ChatGPT prompt to assist you in doing so, with full instructions, here. taxresearch.org.uk/Blog/2025/06/20/chatgpt-prompt-for-a-letter-to-your-mp
HOW TO SUPPORT US
Please consider donating: ko-fi.com/taxresearch
ABOUT RICHARD MURPHY
Richard Murphy is Emeritus Professor of Accounting Practice at Sheffield University Management School. He is director of Tax Research LLP and the author of the Funding the Future blog. His best-known book is ‘The Joy of Tax’.
This video was edited by Thomas Murphy.
RICHARD MURPHY ON BLUESKY:
https://bsky.app/profile/richardjmurphy.bsky.social
OR
ON MY BLOG: taxresearch.org.uk/Blog
HIT SUBSCRIBE & GET NOTIFICATIONS
Subscribe and get notified of new videos released.
INTRODUCTION: youtube.com/watch?v=HdHsRPy3060
PLAYLISTS:
The Wealth Series
youtube.com/playlist?list=PLvRueM6wBgobQLeyZYAagFDMjEFTKbhRD
Ecenomics
youtube.com/playlist?list=PLvRueM6wBgob54Gs-fOL-8OAQ-IpduwB4
Britain
youtube.com/playlist?list=PLvRueM6wBgobwTT4ATvJjsf8OO6S7wD10
Tax
youtube.com/playlist?list=PLvRueM6wBgoaMni_12J6ULp3yUJisUZoY
MMT
youtube.com/playlist?list=PLvRueM6wBgoZ6jvRGSW5YXu8qogE6aClX
Money
youtube.com/playlist?list=PLvRueM6wBgoYnLk1c7syTvoIo8bKYUs5m
Climate Change
youtube.com/playlist?list=PLvRueM6wBgob4_wsYaVivWd2WumpPLYwJ
USA
youtube.com/playlist?list=PLvRueM6wBgoYYd3dSyU2Oyl3x7bWJOP7H
Labour
youtube.com/playlist?list=PLvRueM6wBgoa-KhzG-fnjDSg1WROL1zMw
The Trump Administration
youtube.com/playlist?list=PLvRueM6wBgobz41-GLimTho27A3flVWQx
#richardmurphy #richardjmurphy #economy #economics #accountancy #accounting #tax #uktax #ukeconomy #greennewdeal #uk #money #economy #politics #government #tax #labour #health #life #StraitOfHormuz #GlobalCrisis #OilShock #EconomicCrisis #Inflation #SupplyChainCrisis #UKPolitics #WorldEconomy #BankOfEngland #Rationing #PriceControls #EnergyCrisis #FoodShortages #BankingCrisis #SocialCare #UniversalCredit #MortgageCrisis #HousingCrisis #Nationalisation #Keynes #ModernMonetaryTheory #MMT #FiscalPolicy #PoliticsOfCare #DonaldTrump #IranWar #EconomicPolicy #CostOfLiving #PublicServices #FinancialCrisis
