Sir Keir Starmer has warned there will be an 'inflation spike' caused by a 'war on two fronts' but says the country must not simply return to the 'status quo' after the war in Iran and instead 'we have to take a different course'.

He agreed with stark Bank of England predictions that the UK could see inflation rise above six per cent and warned that even when the Strait of Hormuz was opened 'I don't want anybody to think it will all return to normal'.

The closure of the crucial shipping channel by Iran has caused havoc around the world by disrupting the flow of oil which has sent prices soaring.

Speaking today, the Prime Minister also vowed to take the country 'much closer to the EU' despite Brexit and signalled his support for green energy, claiming it was no longer an 'ideological argument' because energy was 'being weaponised' and the UK needs to be self reliant.

Comparing the effects of the war to economic shocks like COVID and Brexit, he accused previous governments of 'flatlining the country' for two decades by not doing anything different afterwards.

And while he said he still refused to be 'dragged' into a war which is 'not in our national interest' he admitted it had damaged what he claims was a recovering economy and claimed it was 'Putin who benefits the most'.

Speaking to Radio 4's Today programme ahead of next week's crucial local elections, he acknowledged the 'frustrations of voters' and said the country is in an era defining moment when a different course must be taken.

He also insisted he would be judged at the end of his term in office not after the election results, which are expected to be catastrophic for Labour, leading to calls for him to stand down.

'There are moments in history which will define a generation and I think we are in one of those moments.

'The Iran War is not our war and we are not getting dragged into it. Whatever pressure is put on me, I am not going to drag the United Kingdom into a war. It is not in our national interest but it is impacting us. It is impacting our economy. It is impacting our economy and what is happening on our streets.'

The Prime Minister said the economy had been 'beginning to turn a corner' in the spring with inflation at '3 per cent and dropping and six interest rate cuts in a row' with 'growth figures better than anyone expected' and the 'green shoots of change' apparent, but now that had all changed according to the latest forecasts.

'It is a war on two fronts and the person who benefits most from the war in Iran at the moment is Putin because he will feel emboldened because there's a war on two fronts,' he warned.

'We often talk about the world being in a state of greater conflict than we have known in our lifetime. That is impacting what happens in Britain. My strong view is that many, many voters are frustrated that they haven't seen the change they want to see in this country. We flatlined for 20 years.

'That is because each time we have a crisis like this whether it is the 2008 crash, whether it is Brexit or COVID, the government of the day aspires to get back to the status quo as soon as possible. But the status quo wasn't working and therefore we cannot do that again. We have to take a different course in response to this crisis,' he insisted.

Claiming he is 'leading with President Macron' in reopening the Strait of Hormuz, he said:

'Even when that happens, I don't want anybody to think that once the Strait is open, it all returns to normal.

'There is the war in Ukraine and all the indicators are that the world is going to get more volatile not less.

'You have to look at Europe and think 'is Europe strong enough?'. I don't think we are. We have to look at our alliances and think 'are they as they have always been?'.

'The response has to be not the status quo but a changed Britain, a stronger Britain and a fairer Britain - a country that can withstand these shocks, these global events and that means strengthening our economy, investment, technology, getting rid of barriers to the economy and it means being much closer to the EU.'

Asked about what the man in the street would think of that when we had voted to get out of the EU, he said: 'We need to more resilient. We need to be stronger and be able to withstand the shocks.

'We need to take back control of their bills. Energy independence is not an ideological argument anymore. There is a climate change element but it is more than that.'

Warning that our energy supply had been 'weaponised', he said: 'All the time we are on the oil and gas market internationally, we will be impacted by what is happening globally. We have to take control.'

He also said Europe was 'not strong enough' in terms of defence and security and 'Britain needs to be at the heart of a stronger Europe'.

'This is not just about being closer to the EU. This is bigger than the EU on defence and security. We need to be stronger. We bring a lot to the table when it comes to defence but for 20 years at least, European countries have not done enough and it falls upon us at leaders to step up into that space.'

Asked about criticism from former defence secretary George Robertson, who ran last year's Strategic Defence Review, he said there was a 'corrosive complacency in Britain's political leadership' and warned the unsustainable welfare budget, which is five times the amount spent on defence, must be tackled.

The government has consistently faced criticism for postponing detailing exactly how it will increase defence spending which was urgently recommended in the review.

He also denied always 'blaming other people when he c***ed up', saying he had always taken responsibility for the 'mistake' in appointing Peter Mandelson, accusing opposition parties of using the situation as an opportunity to attack him.

'A lot of what has happened in the last week and various motions in Parliament – they are being put forward by my political opponents because they do not like what this government is doing. They want to reverse what we have done and undermine me and bring the government down.'

Asked about growing reports that his political rivals including Heath Secretary Wes Streeting and his former deputy Angela Rayner are circling for his job and whether he would stand aside after disastrous local election results, he insisted:

'I was elected in July 2024 to a five-year term on a manifesto of change with a landslide victory. I will be judged at the end of that period at the next election on whether I have delivered what I have promised.'