House of Commons
Speaker’s Statement
(3 months, 3 weeks ago)
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Mr Speaker
Before we begin proceedings, I would like to note that today would have been the 100th birthday of Her Majesty the late Queen Elizabeth. She was the longest serving monarch this country has known; her reign saw unprecedented social, cultural and technological change. I pay tribute to her lifelong dedication to public service across the nations, overseas territories, Crown dependencies and the Commonwealth. Her devotion to duty remains an example to us all.
Oral Answers to Questions
(3 months, 3 weeks ago)
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Steff Aquarone (North Norfolk) (LD)
The Minister of State, Foreign, Commonwealth and Development Office (Stephen Doughty)
Mr Speaker, may I associate myself entirely with your remarks about Her late Majesty?
The illicit finance summit will convene a coalition of international partners to scale up global enforcement against illicit finance. The summit will forge new partnerships to combat this shared threat, including illicit gold, money laundering in the property sector and the abuse of cryptoassets. The summit builds on our long-term commitment to this agenda, which is also shown in the 2025 UK anti-corruption strategy, and will complement our upcoming presidency of the Financial Action Task Force and other meetings.
Steff Aquarone
The summit is an opportunity for global action on the dirty money that flows through our financial systems, but the Foreign Secretary might rightly be asked by our international partners why overseas territories, who fly our flag and have our King as their Head of State, are preventing transparency and accountability for billions of pounds of illicit finance. Britain should be a world leader in tackling dirty money, but we have to get our house in order. Can the Minister assure the House and our international partners that he will bring overseas territories into line, and can he outline which of his powers he will use to do so?
Stephen Doughty
The hon. Member will know from my previous answers in this place how seriously I take this issue. Our commitment across the whole of our British family on these matters is very clear. I have been working closely with leaders of the overseas territories. We have seen some important progress from a number of them, but a number have not gone far enough; I have been very frank with them about that. We are working in partnership and providing technical advice and support, and I am very hopeful that we will achieve progress, particularly on legitimate interest access to beneficial registers of ownership.
Richard Quigley (Isle of Wight West) (Lab)
The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Mr Hamish Falconer)
The UK is a strong advocate for Interpol, recognising its critical function in supporting international law enforcement co-operation. We also support its ongoing reform programme to ensure there is no space for states to wilfully misuse its systems. The UK is represented at Interpol meetings, where the adequacy of its systems are discussed, and where we work with like-minded partners to enhance safeguards against abuse.
Richard Quigley
My constituent Ollie Bennett is wanted by Interpol for an alleged crime in Morocco three decades ago. Ollie has always maintained his innocence, and following a debate in this place, his crewmate was granted a full royal pardon for the same charges. Ollie, however, was not. In December, he was arrested and detained in a French police cell. Although he is now safely home, Ollie remains at risk of arrest each and every time he goes abroad. The irony is that the Moroccan authorities have never filed to extradite Ollie, yet a Moroccan-sponsored Interpol red notice for Ollie remains active. Will the Minister commit to meeting me, to ensure that Ollie can access the support that he needs to successfully appeal this red notice and finally end this 30-year-long groundhog day?
Mr Falconer
My hon. Friend is a committed advocate for his constituents. I would be very happy to meet him. As he will know, it is a matter of long-standing policy and practice that the UK can neither confirm nor deny the existence of an Interpol alert in a public forum, to protect legitimate criminal justice inquiries, but I would be delighted to meet him.
Ben Obese-Jecty (Huntingdon) (Con)
The Government recently informed me that they have received 64 category 2 type B extradition notices under section 70 of the Extradition Act 2003, of which 56 have been certified. Fewer than five of those come from Bangladesh. Can the Minister confirm how many of those relate to Members of this House, and whether there are any Interpol red notices that apply to Members of this House?
Mr Falconer
The hon. Member will have heard the point I just made: it is a matter of long-standing policy and practice that we do not confirm Interpol notices in public.
Ruth Cadbury (Brentford and Isleworth) (Lab)
Jeff Smith (Manchester Withington) (Lab)
Mr Paul Foster (South Ribble) (Lab)
The Secretary of State for Foreign, Commonwealth and Development Affairs (Yvette Cooper)
Mr Speaker, may I join the tributes to Her late Majesty the Queen?
The UN Office for the Co-ordination of Humanitarian Affairs reports that over 2,500 Palestinians have been displaced by evictions, settler violence and demolitions this year alone. The UK is clear that Israeli illegal settlements and decisions designed to further them are a flagrant violation of international law. Our position is clear and unequivocal: the Israeli Government must stop the expansion of settlements, stop the threats of forcible displacement and annexation, and stop the unacceptable levels of settler violence.
Ruth Cadbury
Does the Foreign Secretary agree that a full ban on all forms of trade and economic activity with those illegal settlements it long overdue, so that UK businesses, the public sector and charities are prevented from having any dealings with them?
Yvette Cooper
My hon. Friend will know that goods from illegal settlements are already not entitled to tariff preferences under the UK-Israel agreement, or the agreement with the Palestinian Authority. We are deeply concerned about reports of the decision to establish 34 new settlements, which would be added to the 68 settlements established since the Netanyahu Government came to office, and by the E1 settlement proposals, which are completely wrong. We will continue to work with our partners internationally to keep pressure on the Israeli Government on this issue.
Jeff Smith
Tariff preferences are one thing, and I know we cannot solve this problem alone, but we must do whatever we can to put pressure on the Israeli Government to stop. The Israeli Government are using the fog of war in Iran to make a Palestinian state unviable by an expansion of these settlements. What more do they have to do before we take action and ban settlement trade?
Yvette Cooper
My hon. Friend will know that we have already introduced three packages of sanctions related to settler violence in the west bank, including measures against Cabinet members in their personal capacity, for their incitement of violence. We continue to look at the issue of sanctions. My hon. Friend is right to point out that this is fundamentally about the two-state solution, and it also risks undermining the Gaza peace process. The UK recognised the state of Palestine in September directly to support the viability of a two-state solution, and that continues to be at risk.
Mr Foster
After the destruction of Gaza and the deaths of in excess of 72,000 Palestinians, it is evident that the Israeli Government have turned their attention not only to Lebanon and Iran, but also to the west bank. In the west bank there are now daily reports of extreme violence and death, as well as the forceful eviction of Palestinians and the continued expansion of illegal Israeli settlements. That is not only immoral, but yet further evidence of illegal Israeli Government-sponsored activity. Does the Secretary of State agree that the violence in the west bank must stop immediately, as must the continued expansion of illegal settlements? Can she assure the House that despite the continuing conflicts in Ukraine, Lebanon, Iran and Sudan, the Government are very much still focused on Gaza and the west bank?
Yvette Cooper
I agree with my hon. Friend. The number of settler attacks has reached new heights, and there were more attacks in 2025 than in any year since the United Nations started recording such incidents more than 20 years ago. These attacks are horrendous, and they must stop. I have continued to raise the issue directly with the Israeli Government and our international partners. I also agree that in the end, all the work that is rightly being done to get progress and talks in Lebanon, and to find stability elsewhere in the middle east, will be badly undermined and will topple over if there is not action over the west bank.
Monica Harding (Esher and Walton) (LD)
Alongside what is happening on the west bank, in Lebanon, more than 1 million people have been forcibly displaced. The Guardian has reported that Israeli strikes on medical facilities in Nabatieh have killed health workers and ambulance crews; it notes that such incidents are becoming increasingly common. The UN is clear that the forced displacement of civilians and the targeting of civilian infrastructure may constitute war crimes and crimes against humanity under international law. What concrete measures are the UK Government putting in place to ensure that Israel ceases targeting civilian infrastructure, and stops forcible displacement in Lebanon?
Yvette Cooper
The hon. Member will know that we called for the ceasefire to be extended to Lebanon, and we condemned the escalation of Israeli airstrikes. We have also strongly condemned the Hezbollah attacks on Israel, which must stop. The issue exposed clearly at the beginning of this conflict was that Hezbollah was simply being a proxy for Iran, and is not in any way the representative of the Lebanese people. That is why talks between the Lebanese Government and the Israeli Government are so important. The ceasefire is also incredibly important, but the huge displacement has devastating humanitarian consequences. That is why the UK is providing additional funding. People must be able to return safely to their homes in Lebanon.
Dr Ellie Chowns (North Herefordshire) (Green)
Israel is acting illegally in supporting settlement expansion, in committing genocide in Gaza, and in attacking Lebanon and Iran. As the Secretary of State says, all those actions are flagrant violations of international law. She says that we must “put pressure” on Israel, but she is doing nothing. Time and again, she and her Ministers come to the Chamber to condemn, but take no action. When will she ban settlement trade? When will she stop all military co-operation with Israel, which is conducting these illegal attacks? When will she take action?
Yvette Cooper
The UK Government have put in place a series of measures that include introducing sanctions against Cabinet members in the Israeli Government. We have taken action around sanctions and arms sales. We have been maintaining continuous international pressure, working with allies, including around the negotiations on Lebanon. We have been pressing strongly for those negotiations, including directly with the Israeli Government, the Lebanese Government and the US Government, who have hosted those talks.
Shockat Adam (Leicester South) (Ind)
While atrocities are being committed against Palestinians in the west bank every single day, including the killing of hundreds and hundreds of children, it is disgusting to learn that British citizens are being offered Palestinian land, which they can purchase with virtually the same ease with which they do their everyday online shopping. Declassified UK has found that Israeli charity Shivat Zion is helping British citizens to move to illegal settlements. That breaks international law; and, to rub salt in the wound, British taxpayers are implicated, as the charity claims UK gift aid. Will the Secretary of State assure the House that she will look into the matter urgently and sanction any organisation, charity or otherwise, complicit in Israeli illegal land grabs?
Yvette Cooper
No one should be building illegal settlements on the west bank. It is essential that everyone abides by international law. We would expect any organisation in the UK and people living in the UK to abide by international law. We maintain our position that these settlements are illegal under international law.
Dr Rosena Allin-Khan (Tooting) (Lab)
The brutal suffering of Palestinians on the west bank remains unchallenged, and the Norwegian Refugee Council has now exposed that depraved sexual violence by Israeli soldiers and settlers is rampant against Palestinian women and girls. That is abhorrent. Will the Foreign Secretary tell us what she is doing to take a firm stand against this cruelty, and will she commit to holding Israel to account for its heinous crimes against innocent Palestinians?
Yvette Cooper
My hon. Friend has raised with me the Norwegian Refugee Council report, and crimes around violence against women and girls. We have made tackling violence against women and girls, including those in conflict, a priority for the Foreign Office. We will take the matter immensely seriously. It is a crime, and the use of this violence as a weapon of war, which we have seen in conflicts across the world, is horrendous. We will continue to pursue the issue.
Munira Wilson (Twickenham) (LD)
The Foreign Secretary has just reiterated that it is this Government’s stated objective and aim to recognise the Palestinian state, yet there are Members of the Israeli Government who say that it is their policy to expand illegal settlements in order to undermine a viable Palestinian state. Will she take firm action, ban the trade in settlement goods, and look at further sanctions on members of the Israeli Government and Members of the Knesset who promote these illegal policies?
Yvette Cooper
As the hon. Lady knows, we have already introduced three packages of sanctions related specifically to the settler violence on the west bank, including sanctions against Cabinet members. She will appreciate that we do not discuss sanctions in advance, but we continue to look at the issue of sanctions, and to take immensely seriously the expansion of settlements. The decision that the UK took in the autumn to recognise the state of Palestine depends on progress with the peace process in Gaza, and on ensuring that the west bank can be a viable part of a Palestinian state.
Calum Miller (Bicester and Woodstock) (LD)
My constituents have shared with me their concern that Benjamin Netanyahu’s Security Cabinet is committing international war crimes in Gaza, the west bank and Lebanon, under the cover of the war that he launched with Donald Trump. As my hon. Friend the Member for Twickenham (Munira Wilson) has just said, the Government were right to finally recognise the state of Palestine, yet the actions of the Israeli Government on the west bank are explicitly intended to destroy the prospect of a two-state solution. I am deeply concerned that what the Foreign Secretary has laid out today is not enough to show the Israeli Government that this Government are serious about prohibiting that. Let me ask again: will the Foreign Secretary do everything in her power to ban all settlement goods from the UK? Will she look again at measures to prohibit all UK individuals, businesses and banks from enabling illegal settlement?
Yvette Cooper
We expect UK organisations, charities, businesses and individuals to abide by international law. We also expect them to recognise that the settlements on the west bank are illegal; in particular, the E1 settlement is blatantly breaking the law. We expect UK organisations to abide by the law. There are already restrictions to prevent goods from illegal settlements benefiting from tariff preferences, and we take immensely seriously engagement with those illegal settlements by UK businesses.
Mr Alex Barros-Curtis (Cardiff West) (Lab)
The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Mr Hamish Falconer)
We have long been clear that the human rights situation in Iran is totally abhorrent. As I speak, the regime continues its repression, whether through executions, including of political prisoners and protesters, or through its ongoing internet blackout. January’s crackdown was an appalling reminder of this regime’s brutality. That is why we have sanctioned senior Iranian decision makers and members of the Islamic Revolutionary Guard Corps for their rights violations, and led the call for an urgent fact-finding mission at the Human Rights Council.
Mr Barros-Curtis
As was referenced, in January, the Islamic Republic unleashed hell on its own citizens, with a brutal crackdown on civilian protests that reportedly saw more than 30,000 people killed and thousands arrested. The subsequent UN Human Rights Council report found that many of Iran’s actions may amount to crimes against humanity. As these abuses continue with impunity, what steps are my hon. Friend and the Foreign Office taking to hold Iran to account and ensure that any negotiated settlement includes clear, enforceable commitments to end such atrocities?
Mr Falconer
I thank my hon. Friend for his commitment to these issues. I described our work on an Iran human rights resolution at the UN Human Rights Council, and on 12 January the Foreign Secretary spoke to her Iranian counterpart, Foreign Minister Araghchi, setting out the UK’s total abhorrence of the killings, violence and repression, and urging the Iranian authorities to change course urgently. We continue to support negotiations between the US and Iran for a lasting resolution to this conflict.
Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)
Lindsay and Craig Foreman are incarcerated in Iran in brutal circumstances, and are being tortured in many ways. They are not my constituents, but their family approached me. May I be clear to the Government, and have them be clear to us in their response? Are the Government saying publicly that they are not spies, but innocent tourists? Will they formally declare the detention to be arbitrary? What else can they do to try to draw attention to the plight of these two innocent tourists?
Mr Falconer
I have been in regular contact with the family of the Foremans. This is a terrible case, and it is absolutely obvious that they are innocent tourists—that is clear to all concerned. We have made that point repeatedly to the Iranian regime, and I have raised it countless times with Iranian representatives, as the Foreign Secretary has done with her counterparts. We will continue to pursue this case; it is an injustice.
Priti Patel (Witham) (Con)
The barbaric regime in Tehran has murdered tens of thousands of its own people. It remains the world’s foremost state sponsor of terrorism and is responsible for appalling antisemitism, and for spying on the British Jewish community. Why did the Government not stop Iran from being appointed to prominent positions in the United Nations Economic and Social Council, as the United States did? If Iran is found to be behind the disgusting attacks on Jewish sites in recent weeks in London, will the Government move forward with the proscription of the IRGC, and act against any financial institutions in the UK that are involved in funding state-sponsored terrorist activity in the UK?
Mr Falconer
As I understand it, the United Nations appointment to which the right hon. Lady refers was a decision of the Asia-Pacific committee—it was not a decision in which His Majesty’s Government had any role—and was subject to an automaticity process, rather than a vote. We did not have an option to block that appointment, although the Foreign Secretary did raise her concerns about it at the United Nations.
The right hon. Lady has rightly highlighted the malign role that Iran plays, not just domestically—as I described to my hon. Friend the Member for Cardiff West (Mr Barros-Curtis)—but internationally. As has been said in this House before, Iran has continued to try to threaten communities in the UK, particularly British Jews. I have said to the Iranian ambassador here, in no uncertain terms, that if British Jews are ever found to have been harmed because of the actions of the Iranian regime, we would treat that with the utmost seriousness, as it deserves. We have sanctioned the entirety of the IRGC, we have imposed more than 550 sanctions, and we have very capable security services in this country. When the Iranians seek to act in the UK, we do find them.
Chris Coghlan (Dorking and Horley) (LD)
The Minister of State, Foreign, Commonwealth and Development Office (Stephen Doughty)
I recently visited Ukraine again—Lviv and Kyiv—and saw again the brutal impacts of Russia’s illegal war on the civilians and, in particular, the children of Ukraine. That is exactly why we are determined to clamp down on the individuals and companies who are supporting Russia’s war on Ukraine and the sources of revenue for that war. We have imposed over 1,200 designations against Russia, including 300 new sanctions in February. We have led international efforts to disrupt the shadow fleet, sanctioning almost 600 vessels, and collectively our efforts with other countries have denied Russia access to at least $450 billion since its full-scale invasion four years ago.
Chris Coghlan
On Friday the United States agreed to extend the partial lift on sanctions on Russian oil exports. Does the Minister agree that this helps President Putin to fund his illegal and murderous war in Ukraine, and that it works directly against the national security interests of both Ukraine and the United Kingdom?
Stephen Doughty
The issues to which the hon. Gentleman refers are of course for the United States. However, we are very clear that we will continue to ratchet up the economic pressure on Putin, to force him to come to the negotiating table and to provide support to Ukraine. Our sanctions remain in place, and we continue to work closely with others to increase that pressure. The Prime Minister, the Foreign Secretary and I have been very clear that we cannot allow the current global situation to result in any kind of bonanza for Putin.
Johanna Baxter (Paisley and Renfrewshire South) (Lab)
The verified number of Ukrainian children stolen by Russia has increased—it now stands at 20,570. In part, that increase in the verified number is the result of the tracing mechanism supported by this Government, and we hope that work will continue. However, last month a report by the Yale Humanitarian Research Laboratory found that over the past two years the Russian state oil producers Rosneft and Gazprom have been implicated in the forcible deportation and re-education of at least 2,158 of those children. Will the Secretary of State review and fully investigate those findings and, where appropriate, consider the imposition of further sanctions?
Stephen Doughty
As ever, my hon. Friend is right to raise this crucial issue. I was very privileged to see for myself the incredible work that we are supporting to trace what has happened to those Ukrainian children. The figure she has cited is correct, and it is absolutely appalling. I am very proud of the work that we are doing with other countries on that issue, and I will certainly look at the issues she has raised. Of course, we have already taken action against the oil companies she mentioned.
Wendy Morton (Aldridge-Brownhills) (Con)
In recent months, western sanctions have really been biting Putin, with the foundations of Russia’s economy failing. However, as we highlighted with the Office of Financial Sanctions Implementation in December 2025, concerns have been reported that Russian crude is reaching refineries—including one part-owned by Lakshmi Mittal—via shadow fleet vessels, showing that gaps remain. Will the Government now lead efforts to crack down on those networks and press those refineries in Turkey, China and India to stop processing Russian oil?
Stephen Doughty
The right hon. Lady will know about the work we have already been doing on this crucial issue, which she is right to raise. We have been very clear on this. Under her Government, there was of course a ban on Russian liquefied natural gas imports, which we continued. We have gone further by announcing our intention to introduce a maritime services ban, and of course we will continue to co-ordinate with international partners on the issue she raises. We cannot allow those revenues to be used to fuel Russia’s terrible actions.
Naz Shah (Bradford West) (Lab)
Sarah Edwards (Tamworth) (Lab)
Steve Witherden (Montgomeryshire and Glyndŵr) (Lab)
Mr Lee Dillon (Newbury) (LD)
The Secretary of State for Foreign, Commonwealth and Development Affairs (Yvette Cooper)
I returned overnight from a series of meetings across five countries in Europe, the middle east and Asia, and I spoke directly with more than a dozen of my Foreign Minister counterparts, as well as joining the 50-country summit hosted by the Prime Minister and President Macron. This is a critical diplomatic moment. The agreed two-week ceasefire runs until Thursday, and we need it to be extended. We need the negotiations to reach a comprehensive conclusion to this conflict, and we need the reopening of the strait with no conditions and no tolls. Our work is to maintain and build the biggest possible consensus around the rapid opening of the strait.
Naz Shah
Following reports that the Israeli military has published a map designating south Lebanese territory as a buffer zone, and given Israel’s refusal to confirm whether displaced Lebanese families will be allowed to return, can the Foreign Secretary tell the House what specific representations the UK Government have made to Israel to ensure that this does not become a de facto annexation? Does she agree that any permanent occupation of Lebanese sovereign territory would not only violate international law, but actively undermine the US-Iran talks being mediated by Pakistan?
Yvette Cooper
My hon. Friend is completely right. Lebanese people need to be able to return to their homes. These are their homes, and it is a humanitarian disaster that so many people have been displaced from them. I have raised this issue directly with the Israeli Government, and we have made continued representations and raised this matter in international forums. We have also raised it with the US, which has been hosting the talks between Israel and Lebanon. It is hugely important that those talks progress, the ceasefire is maintained and Lebanese people can return home.
Sarah Edwards
My constituents in Tamworth are already paying the price for the blockade of the strait of Hormuz, with fuel costs soaring. My logistics sector is also facing the brunt of those fuel costs, which ultimately will be passed on to consumers. While I welcome the Prime Minister’s refusal to drag Britain into the United States’ reckless war, what steps is the Minister taking to secure the reopening of the strait and to bring down costs for my constituents and for the United Kingdom?
Yvette Cooper
My hon. Friend is right. We did not get involved in the start of this conflict, but we will work to bring it to a close and do everything we can to get the strait reopened. It is affecting the cost of living back at home in her constituency, across the country and across the world. No country should be able to hijack international shipping lanes or hold the global economy hostage. We have held repeated summits and meetings on the reopening of the strait, and we will continue to argue across the world for no tolls.
Steve Witherden
While energy giants and Wall Street banks cash in on the war, ordinary people pay the price. In the first month of the US-led war with Iran alone, the world’s 100 largest oil and gas companies made more than $30 million an hour in unearned profit. What discussions has the Minister had with the Chancellor on the merits of introducing windfall taxes to directly fund a cost of living support package, making life more affordable for people and businesses across the UK?
Yvette Cooper
The Chancellor will be making a statement later this afternoon, because she has been focusing in particular on the cost of living and the importance of supporting people and businesses across the country during this global crisis. Another concern is that Russia is seeking to benefit from this conflict, which is yet another reason why we need to get the strait open as rapidly as possible.
Mr Dillon
Given President Trump’s latest threats to destroy bridges and power plants—attacks that would be against international law—has the Foreign Secretary made representations to her US counterpart that threatening war crimes is not the way to achieve peace or to open the strait? More importantly, if Trump does start to attack civilian infrastructure, will she withdraw US access to British bases?
Yvette Cooper
We have been clear from the start that UK bases could be used only for defensive operations, not offensive operations. There is currently a ceasefire in place, although it runs only until Thursday and we badly need it to be extended. As part of the G7 discussions, which included the US, we raised the importance of not attacking any civilian infrastructure. That was included in the G7’s agreed communiqué and reflects the importance that we attach to those issues.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
Has the Foreign Secretary made any assessment of what impact the conflict is having on the horrendous humanitarian situation in Yemen? Given Iran’s continued support for the Houthis, does she believe that in discussions to end the conflict there will be some opportunity to make a positive impact on that conflict?
Yvette Cooper
I can tell the right hon. Gentleman that the Minister for the middle east, my hon. Friend the Member for Lincoln (Mr Falconer), has met the Yemeni Prime Minister in recent days, to engage with the Yemenis, to express our support and to ensure that they can address humanitarian issues. There is obviously a particular issue with Yemen, where Iranian proxies have been mobilised in the past, and it is important that does not happen now. It is another example of how vulnerable, low-income and conflict-affected countries are the most heavily affected by the restrictions on the Gulf and the strait of Hormuz.
Mr Gregory Campbell (East Londonderry) (DUP)
The Foreign Secretary’s push for consensus is to be welcomed. Hopefully, the strait of Hormuz will be open shortly, which will lead to short and medium-term progress. In the longer term, does the Foreign Secretary agree that a lasting peace in the middle east will be more easily secured if we can take action against neighbouring states and elements within those states that threaten the absolute annihilation of the state of Israel?
Yvette Cooper
Israel’s security needs to be protected, and so does the security of Gulf countries that have been attacked as part of this conflict. We need security right across the region. The hon. Gentleman says that we hope the strait will soon be open. We have proposed that, as an immediate confidence-building measure, the Iranians should agree to the International Maritime Organisation’s proposal to start moving the stranded ships and the stranded seafarers. It could get on with that right now, even while negotiations are continuing. We need to get those ships moving and those seafarers home. That is what the IMO has proposed, and we have been building international support to pursue that as an immediate step.
Vikki Slade (Mid Dorset and North Poole) (LD)
The difficulty of ships passing through the strait is leading to fears across all sectors and supply chains, including food production, so the price of food is at risk as well as the price of oil. Increasingly offensive and bizarre social media posts by President Trump are bound to be making diplomatic efforts more difficult, and make us worry whether anything he says can be taken seriously. What steps is the Foreign Secretary taking to ensure that all parties are coming to the table in good faith?
Yvette Cooper
I met Pakistan’s Foreign Minister in the last few days, and the hon. Lady will know that Pakistan is leading the mediation work as part of this effort. I have also spoken frequently to the US Secretary of State, Marco Rubio, and we have been engaging with a whole series of countries. Over the last few days, I have met more than a dozen Foreign Ministers and counterparts to ensure that everyone is pressing the same messages as part of this process. We need the ceasefire extended and a swift resolution, but we must have the strait opened and we must have no tolls. Proposals for tolls have been circulating, but that would be deeply damaging and would go against the law of the sea.
Sarah Champion (Rotherham) (Lab)
Lebanon’s humanitarian flash fund secured less than a third of the money that was required. Some 20% of the Lebanese population is currently displaced, and 40,000 housing units have been destroyed. Lebanon is on the brink of economic collapse and social tensions are rising. I thank the Foreign Secretary for the humanitarian support sent to date, including cash transfers, but I ask her to do more. We need to press for a real ceasefire, provide practical support to Lebanon’s armed forces, help the state to tackle negative influences that are trying to undermine its sovereignty and, finally, vigorously oppose the illegal expansion of Israel’s buffer zone in south Lebanon.
Yvette Cooper
I can tell my hon. Friend that the Minister for the middle east, my hon. Friend the Member for Lincoln (Mr Falconer), was in Beirut at the end of last week, where he pressed those exact points and engaged with the Lebanese Prime Minister. We need an urgent ceasefire, and we need to support the work of the Lebanese armed forces and the Lebanese Government. That is why we have directly provided £30 million of humanitarian support for Lebanon since the beginning of this crisis. I believe that makes us one of the biggest donors to Lebanon, but we must continue to provide support.
Tim Farron (Westmorland and Lonsdale) (LD)
A huge proportion of the global fertiliser market works its way through the strait, which is obviously going to impact on food security and food prices in this country, but it could also cause devastating famines in many countries in Africa and Asia. Research from the University of Minnesota shows that 762,000 people have died as a direct result of US aid cuts since January last year, and some will undoubtedly have died because of our decision to cut our aid budget too. Is this the moment to do the right thing by increasing our spending on international aid and protecting people from the calamity of famine?
Yvette Cooper
The hon. Member will know from our statement that we have focused our support on fragile and conflict-affected states. We are also working, including with the World Bank, to monitor the states most heavily affected by shortages of fertiliser, and of food and oil supplies, which are having a huge impact.
I just want to correct the point I made about the additional funding we have provided for Lebanon being £30 million from the beginning of the crisis. As I understand it, the figure is £30 million since the beginning of this year and £20 million since the beginning of the crisis. However, Lebanon is one of the countries we have ensured we are protecting by continuing to invest and by providing humanitarian support.
David Simmonds (Ruislip, Northwood and Pinner) (Con)
The Minister of State, Foreign, Commonwealth and Development Office (Stephen Doughty)
As I have said many times in this House, Diego Garcia is a key strategic military asset for the United Kingdom, the United States and our allies, and ensuring its long-term operational security is and will continue to be our priority. We remain confident that the UK-Mauritius treaty is the best way to defend the future of the base. We are obviously disappointed with the delay, which I set out the other day, but we will continue to work with the United States and Mauritius on the way forward.
David Simmonds
The Chagos islands are even further from my constituency than they are from Mauritius, which is saying something, but this is having a significant local impact. Hillingdon council is now caring for hundreds of Chagossians fleeing to this country through Heathrow airport to escape the consequences of the Government’s proposed deal, which is placing huge financial pressure on my local authority. Will the Minister undertake to cancel this proposed UK-Mauritius treaty, to bring certainty about the future of the base and ensure that my constituents do not continue to bear the consequences of those forced to flee by the Government’s actions?
Stephen Doughty
I have a lot of respect for the hon. Gentleman, but I simply disagree with the premise of what he says. Chagossians who have been coming to this country have come because of agreements made under the previous Government for them to acquire British citizenship, which entitles them to come here. Support has been provided to councils, and I have worked closely with the Ministry of Housing, Communities and Local Government on this issue. If he has any further concerns or requests to make sure, he should do that through the usual channels.
Mr Andrew Snowden (Fylde) (Con)
Last week, this feeble Government limped to this House to announce that their shameful Chagos surrender Bill was being ditched—a diplomatic failure entirely owned by this Labour Government. Our friends and allies alike around the world were left bemused by the deal that this Government came up with. This week, the Government have sent a team of officials to Mauritius. Can the Minister make it clear that that team have been told unequivocally to tell the Mauritius Government that the deal is dead, the UK will be sending no money to the Mauritius Government and the Chagos islands will be remaining British?
Stephen Doughty
With the exception of when I broke my ankle before Christmas, I have never limped to this House on any occasion. I came here with confidence to set out the reasons why this treaty was needed for our national security. Our officials engage regularly not only with Mauritius, but with the United States and other partners. This deal was of course welcomed by our allies, including our Five Eyes partners, so I simply do not accept what the shadow Minister has said.
Peter Fortune (Bromley and Biggin Hill) (Con)
The Minister of State, Foreign, Commonwealth and Development Office (Stephen Doughty)
Yesterday I appeared before the Foreign Affairs Committee—its Chair, my right hon. Friend the Member for Islington South and Finsbury (Emily Thornberry), is in the House—after the Chief Minister of Gibraltar, to set out this process and to engage in the very important scrutiny that the House provides on this matter. We are all committed to fully implementing and ratifying the treaty as soon as possible to realise its benefits for the people of Gibraltar. There is obviously a complex process, but my understanding is that provisional application of the treaty will be possible from 15 July, which will secure the key benefits of the treaty for the people of Gibraltar, including the fluid border, allowing businesses and working people more certainty and prosperity.
Peter Fortune
I ask the House to note my relatively recent visit to Gibraltar, which is declared in the Register of Members’ Financial Interests.
The naval base in Gibraltar is of high strategic importance and the decision to allow the Spanish authorities to monitor equipment going to the British military is highly concerning. Will the Minister guarantee that the treaty will neither directly nor indirectly in any way limit the operations, access or security of the UK naval base?
Stephen Doughty
I can absolutely assure the hon. Gentleman of that. We would not have signed off the deal without those assurances. The Ministry of Defence, the Defence Secretary and others were fully involved at all stages of the process. We have been very clear that the treaty protects the operational autonomy of our military facilities, which will continue to operate unfettered, as they do today.
Luke Akehurst (North Durham) (Lab)
I congratulate the Government on this significant announcement. Does the Minister agree with me that the agreement provides additional safeguards to Gibraltar’s sovereignty, while creating new economic opportunities for its people? Does he agree that anyone in this House who has any concerns should listen to the Chief Minister of Gibraltar, who knows better than anyone what is best for the people who elected him and he represents?
Stephen Doughty
I can assure my hon. Friend of that. It is important to note that Gibraltar’s sovereignty was never on the table in the negotiations—we have been very clear about that throughout. The agreement has been supported by and worked through with the Government of Gibraltar throughout, and it was unanimously supported by Gibraltar’s Parliament. That is very important to note in this House.
Wendy Morton (Aldridge-Brownhills) (Con)
The Minister made a statement to the House on 26 February. Sadly, that has not been followed by the detail that Parliament was promised. In his most recent answers to my written parliamentary questions he says that the final treaty will be laid “As soon as possible” after EU processes conclude, yet the Government of Gibraltar have stated that it is provisionally due to come into force in July. Will the Minister set out a clear timetable for implementation and confirm when Parliament will be given proper time to scrutinise the full details? Will he guarantee that scrutiny under the Constitutional Reform and Governance Act process will take place before provisional application?
Stephen Doughty
As I set out yesterday, the timetable is not entirely in our control, because it relates to the other party in the treaty, the EU, and its processes. Mr Speaker, you will know that I brought forward the entire text of the draft treaty so that this House had a chance to scrutinise it. I have also provided briefings to the right hon. Lady and her colleague, the right hon. Member for Witham (Priti Patel), as I did yesterday in the Foreign Affairs Committee. We will follow the CRaG process in the usual way. I will ensure that the House is kept fully informed and is able to scrutinise as appropriate.
Naz Shah (Bradford West) (Lab)
The Secretary of State for Foreign, Commonwealth and Development Affairs (Yvette Cooper)
Yesterday, the Prime Minister updated the House on the fact that UK Security Vetting recommended against granting vetting of Peter Mandelson, and that the Foreign, Commonwealth and Development Office instead took the decision to grant the vetting. The Prime Minister, the former Foreign Secretary and I should have been told that there was an issue and I am very troubled that we were not. The result is that Parliament was not given all the information it should have been given. As I informed the Select Committee over the weekend, I have commissioned a review of all the information provided and I will write to the Chair further on that shortly.
The permanent under-secretary is no longer in post, and I want to recognise Sir Olly Robbins’ many years of dedicated public service, as the Prime Minister did yesterday. I also want to pay tribute to the FCDO and the incredible staff who work not just here in the UK but across the world promoting UK interests and values at an incredibly unstable time. That is what has made it possible for me to travel through five different countries in the past six days, pursuing international diplomacy. The scale of global insecurity impacting our economy and our national security will rightly continue to be the central focus of the FCDO and this ministerial team.
Naz Shah
As the conflict in the middle east has fundamentally demonstrated, modern warfare has evolved. Ballistic and hypersonic missiles are capable of overwhelming traditional air defence systems, and energy supplies, food security and critical goods are increasingly weaponised as instruments of coercion. Will the Foreign Secretary set out what specific steps the Foreign Office is taking, in co-ordination with the Ministry of Defence, to ensure that the United Kingdom is prepared for those threats, to protect our people and our country?
Yvette Cooper
My hon. Friend is right to highlight the changing technology, geopolitics and security threats. We now face very different threats to our country. That is why we are increasing both the defence budget and the Foreign Office’s work around a range of hybrid threats, including cyber and others, and we will need to continue to do so. I suspect that we will need to accelerate that work, too.
Priti Patel (Witham) (Con)
This morning, we heard Sir Olly Robbins say that there was a “dismissive attitude” and an atmosphere of pressure from No. 10 towards security vetting due to its desire to get Mandelson in post as soon as possible. Given Sir Olly’s account, why did the Foreign Secretary lose confidence in him last week? Surely the Prime Minister passed the buck for his own failures and appalling judgment.
Yvette Cooper
The starting point was the appointment of Peter Mandelson; he should never have been appointed to his post. The Prime Minister made that clear, and has apologised not just to the House but, more importantly, to the victims of Epstein, which is where that apology should lie. The right hon. Lady will know that Ministers have a responsibility to provide accurate information to the House and to ensure that we get that information from officials. Ministers, including the former Foreign Secretary and the Prime Minister, should have been told about the UK Security Vetting conclusions and recommendation, which I think was relevant information that should have been provided to the House in September.
Priti Patel
Like the Prime Minister, the Foreign Secretary will be aware that Peter Mandelson was on the board of Sistema alongside Russian spies. Has she now checked whether the concerns raised during vetting related to Mandelson’s business links with enemies of the United Kingdom, including Russia and China? Has she asked for the details of the mitigations Sir Olly mentioned this morning and whether they were put in place around Mandelson? Does she know what kompromat our enemies have on him, and is she reviewing all his activities as ambassador for any compromise of UK national security?
Yvette Cooper
I have been informed of the conclusions of the UK Security Vetting report and assessment and its recommendation; I have not seen the detailed content of its report. I do think there is a distinction between the individual personal information that is provided and the conclusion and recommendations UKSV provides. The right hon. Lady will know that the Prime Minister has instigated a full investigation by Sir Adrian Fulford into this entire process and what was known, as well as the whole vetting process. Information is also being provided to the Intelligence and Security Committee.
Oliver Ryan (Burnley) (Lab/Co-op)
The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Mr Hamish Falconer)
I know of my hon. Friend’s commitment to these issues and of the concern in Burnley. I raised exactly those concerns about the west bank with counterparts from the United States—with high representatives from the board of peace—and most importantly with the Palestinian Prime Minister, who is doing everything he can to ensure that people on the west bank are protected from settlement violence. Settlements have expanded at an historic rate and are a subject of deep controversy both in Israel and in this House. We will continue to raise these issues with the seriousness that they deserve.
Calum Miller (Bicester and Woodstock) (LD)
This morning the Foreign Affairs Committee learned that officials in No. 10 put pressure on the FCDO to find a job as ambassador for Matthew Doyle, a close friend of a convicted sex offender. Does the Foreign Secretary see a pattern here? Does she find it incredible that No. 10 told FCDO officials not to tell her predecessor about this proposal? Will she commit to investigating and publishing all records held by the FCDO about this proposal from No. 10? Is she concerned that political decisions by No. 10 about FCDO staffing have grossly eroded trust and morale among her hard-working civil servants?
Yvette Cooper
Obviously, I was the Home Secretary at the time that I understand that took place, so I was not involved and do not know the circumstances. I am, of course, extremely concerned at any suggestion that the permanent secretary or permanent under-secretary of the Foreign Office would be told not to inform the Foreign Secretary. As for the case that the hon. Member raised, I can confirm that it would also not have been an appropriate appointment.
Let me respond to the wider issue. As I said in my opening statement, I pay tribute to the phenomenal dedication of the people who work right across the Foreign Office. They work with me every single day at a time of immense global instability, and they are continuing to work with huge dedication on pursuing UK interests and UK values, because that is what makes us stronger at home.
Rachel Blake (Cities of London and Westminster) (Lab/Co-op)
Yvette Cooper
I am glad that my hon. Friend raises this issue. In Berlin last week with my German, French, US, EU and African Union co-hosts, we called for an urgent ceasefire, a humanitarian truce and humanitarian access. It is deeply distressing that this conflict is continuing. Participants also pledged over £1 billion to support the humanitarian response, which includes £146 million of UK humanitarian funding this year for Sudan and an increase in the support given to local aid groups. However, it is desperately urgent that we get a ceasefire, because it is the worst humanitarian crisis of the 21st century.
Robin Swann (South Antrim) (UUP)
Yvette Cooper
As the Prime Minister set out yesterday, we believe that Ministers should have been informed that the UK Security Vetting recommendation was against granting developed vetting to Peter Mandelson. That is significant and important information. It should have been disclosed to the Prime Minister at the time, and it should certainly have been disclosed to me at the time when I was answering specific questions from the Select Committee that were particularly about security concerns and what the response had been to them. Again, as the Prime Minister has said, he spoke to Sir Olly before making the decision.
Dave Robertson (Lichfield) (Lab)
Yvette Cooper
The most immediate, urgent thing we need to do internationally is get the strait of Hormuz reopened. That is what I have been pursuing in a series of diplomatic meetings over the last few days across five different countries with 12 different Foreign Ministers. On the domestic issue, the Chancellor will be making a statement shortly.
Mr Will Forster (Woking) (LD)
Mr Falconer
I want to reassure this House that the Government have not taken our eye off events in Lebanon or indeed in Israel and Palestine. That is why I was in Beirut last week with the Lebanese Prime Minister, President and various others and in Brussels yesterday with the Palestinian Prime Minister and a range of other key actors. Clearly, what the European Union does is a matter for itself. We have taken a series of steps in the way that the Foreign Secretary has already set out, and we will keep those under close review.
Gill Furniss (Sheffield Brightside and Hillsborough) (Lab)
In my constituency, I recently met a young woman from Somaliland who in recent years has lost 14 members of her family to fighting in the region. She and other campaigners from Somaliland are understandably reticent to use the new e-visa system introduced by the Somalian Government due to fears about privacy and data protection. Will the Minister raise those questions with his counterparts in the Somalian Government to ensure that Somalilanders can travel to their country without fear?
The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Chris Elmore)
I thank my hon. Friend for her question and offer my condolences to her young constituent. The British embassy in Mogadishu has raised e-visas with the Federal Government of Somalia. We will provide further updates to travel advice in due course, as necessary. We continue to raise these issues and call for peaceful talks to bring about a sustainable peace in Somalia.
Ben Maguire (North Cornwall) (LD)
Yvette Cooper
We discussed this issue directly at the Berlin conference. I agree with the hon. Member. To be honest, I think that the international community has failed the people of Sudan. The war continues in the most horrendous circumstances. We have urged anyone who can to put pressure on the RSF and the SAF, and they must allow humanitarian access to people who desperately need it.
Phil Brickell (Bolton West) (Lab)
Businesses in my constituency including trailer manufacturer Indespension are labouring under a mountain of repetitive, costly and unnecessary paperwork because the last Government failed to negotiate a regime for mutual recognition of conformity assessments. What progress has the Foreign Secretary made, with the Paymaster General, in removing the Brexit barriers to trade that are holding back British businesses abroad?
The Minister of State, Foreign, Commonwealth and Development Office (Stephen Doughty)
My hon. Friend raises an important question on behalf of his constituents. Our long-term national interest, and indeed the interest of businesses in his constituency, requires a closer EU partnership anchored in common understanding. We are tackling trade barriers, and we are working hard on these issues with the Paymaster General. We continue to discuss the challenges faced by manufacturers on both sides, as well as trade and co-operation agreement implementation, at the trade specialised committees. We will have a chance to discuss many of these issues at the further summit that we will have later this year.
Bob Blackman (Harrow East) (Con)
Mr Falconer
As the hon. Member may know, I have repeatedly summoned the Iranian ambassador on concerns about what goes on in the UK. Some elements of the alleged attacks in the UK are still sub judice, but I want to leave him in no doubt about how forcefully we have raised these points with the Iranian ambassador, and indeed with the Iranian regime.
Nick Smith (Blaenau Gwent and Rhymney) (Lab)
Constituents involved in my local Rotary club have contacted me about the global polio eradication programme. I am reliably advised that Ministers want to concentrate resources for the best impact. Can the Minister reassure my constituents that the UK remains determined to protect the important gains made in polio eradication for the future?
Chris Elmore
I can offer my hon. Friend that reassurance, and I pay tribute to Rotarians who have worked for the eradication of polio over so many decades. We will continue to support global polio eradication directly until December 2026 and then support our polio eradication fund through £248 million of fully flexible core funding to the World Health Organisation between 2025 and 2028. We remain utterly committed to eradicating polio around the world.
Lisa Smart (Hazel Grove) (LD)
Last month, the Rycroft review confirmed that the UK faces persistent and strategic interference from hostile states and warned that our defences against information warfare are “worryingly weak”. With important elections across the country in two weeks’ time, including in my Stockport council area, what steps are the Government taking, working with our allies, to prevent disinformation from overseas aimed at those participating in UK elections?
Stephen Doughty
The hon. Lady raises a crucial issue, and I work closely with the Security Minister and others on these matters. Our electoral system is highly resilient and to date we have not seen evidence of successful Russian interference in UK democratic processes. However, we know that the Kremlin is seeking to sow discord in the west and in the UK and to undermine our institutions. We are working on a series of measures to ensure that it cannot achieve that foothold in our society or our democracy.
Mary Kelly Foy (City of Durham) (Lab)
On 1 January, Israel revoked the licences of 37 international non-governmental organisations working in the occupied west bank and Gaza. The United Nations human rights chief called the suspensions “outrageous” and said that they made
“an already intolerable situation even worse for the people of Gaza”.
What is the Minister doing to ensure that the Israeli Government allow lifesaving aid to enter Gaza, reverse the suspensions of the licences and do not politicise or weaponise aid and humanitarian relief?
Mr Falconer
We have continued to raise the importance of all the necessary aid getting into Gaza. It is welcome that over the last week the amount of aid that has gone in has increased, but it is still not adequate to the needs. We have raised the question of restrictions directly and repeatedly with the Israeli Government and we will continue to do so. It is vital that aid gets to the people who need it.
Brendan O'Hara (Argyll, Bute and South Lochaber) (SNP)
Would the UK consider a state to be a democracy and would it continue normal diplomatic relations with that state were it to introduce a differential death penalty based on ethnicity?
Mr Falconer
I think the hon. Member refers to the legislation passed in the Israeli Knesset. We oppose the death penalty everywhere. On 29 March, we joined many of our friends across the world to condemn that specific measure, and the Foreign Secretary has raised it specifically with the Israeli Foreign Minister. I can leave the House in no doubt about our opposition to the measures.
Emily Thornberry (Islington South and Finsbury) (Lab)
May I associate myself with the comments of the Foreign Secretary with regard to the Foreign Office and the dedication and hard work of its officials? At a time like this, we are particularly in need of a Foreign Office that is absolutely at the top of its game, not just in this country but across the world. However, the Foreign Affairs Committee’s concerns remain about security more than anything else, and the impact of employing Peter Mandelson causes us great concern. During his time as the ambassador to the United States, he was given access to top secret information. How can we protect our country against his leaking any of that, given his record?
Yvette Cooper
I know that my right hon. Friend has been taking evidence on that issue and that she has raised issues around security. We take the issue of security extremely seriously. She will know that there is a police investigation under way, which raises some of those issues. She will appreciate that I do not want to say anything that would cut across that, but I am happy to discuss the matter with her further.
Gareth Bacon (Orpington) (Con)
I refer the House to my entry in the Register of Members’ Financial Interests. Point 13 of the first phase of the Gaza peace plan negotiated by the United States is very clear that Hamas must disarm, dismantle their terrorist infrastructure and play no role in Gaza’s future. The Government have expressed support for that and they are right to do so, yet Hamas have been equally clear that they are not going to disarm, and every indication is that they are doing the reverse. What steps will the Government take to ensure that the removal of Hamas and the demilitarisation of Gaza become a reality?
Mr Falconer
I was discussing precisely these issues yesterday. Hamas must disarm; there must be a process by which their weapons are decommissioned. There are ongoing discussions on those questions. Hamas must agree, voluntarily, to disarm. That is vital and it is a key component of the 20-point plan. Without agreement on that point, it will be difficult to make progress. I was discussing that with a range of our international counterparts yesterday and we will continue to remain very focused.
Mr Speaker, may I take the opportunity quickly to correct—
Anneliese Dodds (Oxford East) (Lab/Co-op)
On Sudan and the failing international response, will the Foreign Secretary consider further economic measures and sanctions, including against the nationals of the countries that support the belligerents? Will she encourage the Prime Minister to prioritise Sudan in his international engagements so he can show the leadership that she has shown?
Yvette Cooper
I can assure my right hon. Friend that we are continuing to raise matter this as well. We assess that around a dozen countries are providing different kinds of arms flow support to the warring parties. That is an extremely serious concern and we are raising it with a range of countries. We also continue to look at the issue of sanctions.
Sir Andrew Mitchell (Sutton Coldfield) (Con)
Following the Minister’s answer to Question 1 on illicit finances, we still do not have publicly accessible registers of beneficial ownership in the overseas territories, nearly 10 years after this House passed the necessary legislation and made it clear that they must be set up. When will the Government put their foot down, say that there has been enough delay and obfuscation, and fully open up these registers to proper scrutiny now?
Stephen Doughty
The right hon. Gentleman will know that we have publicly accessible registers in some of the overseas territories—in Gibraltar and Montserrat—and there has been welcome progress on legitimate interest access registers in a number of them, including in recent weeks, but I absolutely agree that we need to go much further. We are working closely to ensure that there is progress, and I have set out my expectations very clearly.
Douglas McAllister (West Dunbartonshire) (Lab)
I have always been assured by both the Prime Minister and the Foreign Secretary that the case of my constituent, Jagtar Singh Johal, who has been arbitrarily detained in India for eight and a half years, would continue to be raised at all levels, but I understand that the Foreign Secretary met her counterpart Jaishankar on two occasions recently and was unable to do so. Can I have the Foreign Secretary’s assurance that she remains committed to raising Jagtar’s case and is actively working to secure his release?
The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Seema Malhotra)
I can give my hon. Friend the assurance that we continue to raise the important case of Jagtar Singh Johal and to seek a resolution to his case as soon as we can.
Robert Jenrick (Newark) (Reform)
Last month, the United Nations General Assembly voted to demand that countries including the United Kingdom pay reparations for slavery. Astonishingly, the Foreign Secretary instructed our ambassador to abstain and to issue a pathetic hand-wringing statement that failed to mention the United Kingdom’s unique role in the eradication of this great evil. Are we a punchbag or are we a great, proud country? Will the Foreign Secretary explain her decision and state to the House unequivocally that the United Kingdom will never pay a penny of British taxpayers’ money in reparations?
Chris Elmore
We are, of course, against reparations, and when the right hon. Gentleman was a member of the Conservative party, I think he was against them, but who knows what he is for or against now? Goodness only knows. Let’s face it, Mr Speaker, he has just got his clip for social media, and this is all the response that he deserves.
Euan Stainbank (Falkirk) (Lab)
March was one of the deadliest months on record for settler violence in the occupied west bank. For communities such as Jayyous, life is becoming intolerable. Will the Government go further than the diplomatic pressure currently being exerted and expand sanctions on the many Israeli officials explicitly and brazenly empowering settler violence against Palestinians in the west bank?
Mr Falconer
I thank my hon. Friend for raising that important point. As I said earlier, it remains uppermost in our minds, and we discussed it with our partners yesterday. He will have heard Ministers say before from this Dispatch Box that we will not speculate on further sanctions, but we treat this issue with the seriousness it deserves.
Brian Mathew (Melksham and Devizes) (LD)
The Foreign Secretary has made it clear that a ceasefire in Sudan is a key priority. In the light of the Berlin conference’s shortcomings, can she detail the diplomatic, economic and political levers she is using to bring an end to the violence, particularly with the UK’s allies, including the UAE, with direct stakes in the war?
Yvette Cooper
I can tell the hon. Member that as well as discussing this matter intensively at the Berlin conference, I discussed it with the UAE Foreign Minister, whom I met a couple of days ago. I also discussed it with the other members of the Quad—the US, Saudi and Egypt. We are continuing to work not just with the Quad but much more widely to engage all countries in pressure to get to a ceasefire.
Greg Smith (Mid Buckinghamshire) (Con)
Can the Foreign Secretary give a guarantee that there is nothing in the so-called reset negotiations with the European Union or the rumoured reset Bill that is incompatible with section 38 of the European Union (Withdrawal Agreement) Act 2020?
Stephen Doughty
The Minister for the Cabinet Office has set out answers to those questions.
Sir Julian Lewis (New Forest East) (Con)
Does the Foreign Secretary accept that, as a matter of objective fact, this House was misled about the circumstances of Mandelson’s security vetting, even if that misleading was inadvertent?
Yvette Cooper
The House was not given the full information. It is important that it should be given the full information, and I have undertaken to write to the Select Committee ensuring that full, as well as accurate, information is provided.
Carla Lockhart (Upper Bann) (DUP)
In the UK, we pride ourselves on allowing people to practise their religion freely. Can the Minister update the House on what he is doing with any new regime in Iran to protect the rights of Christians to worship openly there?
Mr Falconer
Freedom of religious belief continues to be an important issue that the Foreign Office pursues with vigour. I am glad that we are joined in the Chamber by our envoy on that question, my hon. Friend the Member for North Northumberland (David Smith). We have raised questions of freedom of religious belief with the Iranian Government on countless occasions. It is clear, given the scale of restrictions that they have put on their own people, that they are not listening to the United Kingdom’s advocacy on these questions, but we will continue to raise these questions and pursue the matter with our partners.
Mr Falconer
On a point of order, Mr Speaker. I wish to correct the answer I gave the shadow Foreign Secretary, the right hon. Member for Witham (Priti Patel), in relation to the Iranian appointment. While it is true that our diplomats have raised concerns about human rights issues in general, the Foreign Secretary has not herself raised within the United Nations the question of this appointment. There has been no opportunity for her to do so.
Middle East: Economic Update
(3 months, 3 weeks ago)
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The Chancellor of the Exchequer (Rachel Reeves)
With permission, I will update the House on the spring meetings of the International Monetary Fund and the continued action that the Government are taking to strengthen our economic and energy security in response to the conflict in the middle east.
We did not start this war and we did not join this war, but since the war in the middle east broke out, I have been clear-eyed about my duty: to be responsive to a changing world and responsible in the national interest. The best economic policy today is our diplomatic policy—negotiation, de-escalation and the permanent reopening of the strait of Hormuz.
Last week in Washington, I held talks with world Finance Ministers, including the US Treasury Secretary, Scott Bessent. I struck a joint agreement with 10 other major economies, calling for a swift and lasting negotiated resolution to the conflict and agreeing to avoid unnecessary trade restrictions to support energy and food security. We agreed to maintain maximum economic pressure to ensure that Russia cannot profit from this war. I was proud to announce the UK’s third tranche of the Extraordinary Revenue Acceleration funding for Ukraine’s defences, as well as continuing to work with the US Administration to increase economic pressure on Iran.
The Prime Minister has also led global action, convening a summit of nations with the President of France to work together to support freedom of navigation through the strait of Hormuz. The UK will continue to play its part, including engagement with the insurance industry to support shipping when conditions allow.
We are continuing to plan for every eventuality, but we must deal with the economic costs that are already being felt. I reject the demands for a knee-jerk response to this crisis that would put household finances at risk through higher inflation and higher interest rates. Every choice that I make will be about keeping costs down for families and businesses. That is why I have extended the 5p cut for fuel duty twice since the election, saving the average motorist £90 a year compared with the plans that I inherited. It is why I have frozen prescription charges for two years in a row and frozen rail fares for the first time in 30 years; it is why I am taking £150 off energy bills with additional help for those struggling with the cost of heating oil; and it is why I have expanded the British industrial competitiveness scheme to over 10,000 manufacturers, addressing long-term competitiveness and cutting electricity costs from this year.
During the last energy shock, the previous Government’s package of unfunded and untargeted support saw more than a third of direct energy bill support go to the wealthiest households. That meant higher inflation, higher interest rates and higher taxes. I will not repeat those mistakes. Last week, the IMF said that my plan is “the appropriate response” to the conflict. I led a joint statement, with 10 other major economies, agreeing to co-ordinate our domestic responses, to ensure that they are responsive and responsible. This Government have the right plan for our economy. At the spring forecast, we saw how the action that we have taken since the election has prepared Britain to better weather this conflict. Inflation was at 3% and set to fall to target—a lower base than at the outset of the Russia-Ukraine conflict, when inflation was high and rising. Borrowing was set to fall more over this Parliament than in any other G7 economy. We are set to reduce the deficit by £20 billion, from 5.2% to 4.3% of GDP this year. I increased our financial buffers, with headroom against the stability rule of £23.7 billion, so that we can weather shocks and keep borrowing costs down.
Last week, the IMF welcomed the UK’s “notable improvement” in our public finances. I am clear that the best way we can build a stronger, more resilient economy is through economic growth. I welcome recent figures showing that the economy grew by 0.5% in the three months to February and upgraded growth for the three months to January to 0.3%. I also welcome this morning’s labour market figures for February, which show unemployment coming down and real wages continuing to rise, as they have in every month since I became Chancellor—adding to the evidence that the Government have the right economic plan to steer our economy through the uncertainty ahead.
However, as I have said, the war in Iran will come at a cost. Last week, the IMF published its updated forecasts for the global economy in response to the war. It reduced its expectations for GDP growth in the United Kingdom and increased its expectations for inflation. That builds on the IMF’s judgment that the UK is more exposed to energy price shocks than our counterparts—a problem that the previous Government failed to address in 14 years—and on its observation that, since the last energy crisis, the UK has had higher inflation than other countries. The aftermath of Liz Truss’s disastrous mini-Budget, and the previous Government’s untargeted and unfunded support package, contributed to a more persistent rise in inflation and interest rates than in other countries around the world.
The IMF’s forecasts are a stark reminder of why we must stick to our economic plan and go further and faster on delivering economic security. Since the election, we have invested in clean, home-grown energy, in renewables and in nuclear power. In 2025, we imported 17% less gas than in 2021, and gas generation now sets the wholesale price of electricity around a third less frequently than it did in the early 2020s, meaning that our energy system is now more secure and less exposed to volatile global energy prices.
Today we are going further, with a package of changes to reduce our reliance on imported oil and gas, boost the use of renewables, and smooth the impact of energy price shocks. First, oil and gas production from the North sea is an important and valuable resource, and its workforce is a vital asset for our country. That is why we are harnessing our domestic supply by managing existing fields for their entire lifetimes, including by allowing tiebacks for those fields to ensure that they remain viable. Today, in advance of legislation, we are publishing further details on tiebacks, which I first announced in the Budget. External analysis has predicted that they could result in tens of millions more barrels of oil and gas being available for UK supply. Today’s announcement gives industry greater clarity to support investment in those projects and maximise supply from our existing sites to support our energy security.
Secondly, we are sweeping away the barriers to new renewables investment by accelerating vital grid infrastructure, reforming land access rules and extending permitted development rights, as well as making more public land available for renewable infrastructure, which could unlock up to 10 GW of capacity, and helping households and businesses to switch to clean, cheaper renewable electricity through plug-in solar panels and better electric vehicle charging.
Thirdly, we are reforming our energy system. Currently, households and businesses pay more for their electricity when the gas price is high. The electricity generator levy already recoups some of the excess returns made by generators due to high gas prices. Today, I am announcing that I will extend the electricity generator levy beyond its scheduled conclusion in 2028, and, ahead of that, I will increase the rate of the levy from 45% to 55%. That will ensure that a larger proportion of any exceptional revenues from high gas prices are passed back to Government, providing a vital revenue stream so that money is available for Government to support businesses and families with the impacts of the conflict in the middle east. Crucially, it will encourage older low-carbon electricity generators, which supply about a third of our power, to move from market pricing to fixed-price contracts for difference.
New proposals, set out by the Secretary of State for Energy Security and Net Zero today, will further weaken the link between high gas prices and the price paid for our electricity, and limit the spikes in energy prices from driving up inflation and costs for households and businesses.
The Government have the right economic plan—a plan that was right before this conflict in the middle east started and is now essential to weather the impact of that conflict. The plan, backed by the IMF, will keep costs down for everyone and provide support for those who need it most. In a world that is more uncertain, it is a plan to build a Britain that is stronger and more secure. I commend this statement to the House.
Sir Mel Stride (Central Devon) (Con)
I thank the right hon. Lady for advance sight of her statement.
The UK has some of the highest energy prices in the world. That is crippling our economy and pushing up the cost of living, and it leaves us particularly exposed to energy shocks such as the one we are experiencing right now. Yet the Government seem totally unwilling to accept the scale of the problem and to shift in their dogmatic commitment to a net zero agenda, which is making us poorer.
Last year, we Conservatives came forward with our cheap power plan. We said that the Government needed to scrap carbon taxes and the renewables subsidies, which are pushing up bills, and reverse the nonsensical decision to rely on imported oil and gas instead of pursuing the common-sense approach of extracting our own resources from the North sea. Under pressure from this Conservative Opposition, there has been some progress at least, but it has been made at a snail’s pace. The Secretary of State for Energy Security and Net Zero has been dragged, with oh so much reluctance, in the direction that we have set out.
The action taken goes nowhere near far enough and is not fast enough. At the Budget, the Government announced they would take 75% of the cost of renewables off bills, but they did not abolish the subsidies, as we called for them to do. They are still being paid—maybe not out of people’s energy bills, but out of the pockets of hard-working taxpayers. When it comes to the vast majority of businesses in our country, this Government have done nothing for them.
The proposals announced today risk locking in the costs of those subsidies by including them in the new contracts for difference, to which the Government are hoping that energy producers will sign up. Can the Chancellor confirm that this is the case—that under these arrangements, these subsidies will not only persist but will be guaranteed? The new contracts announced today are, of course, voluntary, so on what basis do the Government think these changes will lead to an overall reduction in energy bills? Presumably, generators will only sign up to these arrangements if it is in their commercial interest to do so. How will the Government ensure that companies do not simply game the system and end up being guaranteed higher prices?
By how much will these announcements reduce energy bills? Has the Energy Secretary even provided the Chancellor with an estimate of the impact on bills? If there is no estimate, how can the Chancellor be confident that bills will indeed be reduced, not increased? On that point, we can put a number on our plan: it would mean £200 off household bills. Why can the Chancellor not do the same with this latest announcement?
The Government have also said they will get rid of carbon price support. That is welcome, but they are not doing it until next year, and the CPS is only part of the carbon tax, which the Opposition are clear needs to be scrapped completely. It costs both households and businesses, and it needs to go. Why will the Chancellor not commit to removing these taxes completely? On taxes, the Chancellor noted the importance of keeping fuel duty down, but once again she had nothing to say about the onerous increase that she still plans to bring forward in September.
Finally, we have had no meaningful action today on the issue of North sea oil and gas. The Chancellor says she wants to reduce our exposure to global energy prices, yet the Government are choosing to leave us more reliant on imported hydrocarbons. We all know that she is in a completely different place on this to the Energy Secretary. He is committed to the gradual smothering of our oil and gas sector, regardless of the cost to our economy and the loss of those jobs and tax revenues. Why does the Chancellor not urge the Prime Minister to overrule the Energy Secretary on these matters? The revenues from new oil and gas extraction are vital, given the state of our public finances.
The current crisis shows how exposed we are and how damaging the Government’s net zero obsession has been to our economy, to households and to businesses. The Government are right to want to reduce that exposure, but they are doing too little, too late. We need an urgent change of course, not dither and delay. We need a proper cheap power plan to get bills down, and we need it now.
Rachel Reeves
That response exposes a shadow Chancellor who is out of credible ideas. I was sad to read in the weekend’s newspapers that once again, he is being lined up for the sack by the Leader of the Opposition, but to be honest, after his performance today, I can understand her choice.
The shadow Chancellor talks about the IMF. Yes, the IMF did downgrade the forecast. Why? It is because of a war, which his party unquestioningly backed, and because of our high exposure to global energy markets, which his party allowed. We are taking the right choices. We did not back this war, nor did we follow the calls of the Leader of the Opposition and the leader of Reform to join in. We are investing in and reforming our energy market, so that we can take back control of our energy security.
The shadow Chancellor talks about the economy. Well, let’s talk about the economy. Before this war broke out, our economy grew by 0.5% in the three months to February and 0.3% in the three months to January. Inflation was expected by the Bank of England and the Office for Budget Responsibility to return to target, and interest rates had been cut by their fastest rate in 17 years, compared with hitting 5.25% under the Conservatives, which saw mortgage costs going through the roof. [Interruption.] The hon. Member for Wyre Forest (Mark Garnier) says it is the Bank of England’s job to address inflation, but we had the same Bank of England when the Conservatives were in government. It has cut interest rates while we have been in government because we got control of the public finances, and the Conservatives lost control of the public finances.
The shadow Chancellor says that the response to a fossil fuel crisis is to rely more on fossil fuels and to reduce investment in clean, home-grown energy. He is ignoring the fundamental lesson of both Russia’s invasion of Ukraine and the conflict in the middle east. The shadow Chancellor opposed new solar energy, opposed onshore wind power and did not invest in either Sizewell C or small modular reactors, as this Labour Government are doing. Just today, the CEO of RenewableUK has said that
“reducing the link between the volatile global gas prices and the cost of electricity is the best way to protect households, businesses and industries against the unpredictable and volatile costs of fossil fuels in the long term, to strengthen the UK’s energy security.”
The shadow Chancellor says that tiebacks make no difference, yet Offshore Energies UK says that
“developing fields as tiebacks reduces costs, lowers emissions, and extends the life of existing critical infrastructure”,
which is exactly why we are doing it.
The shadow Chancellor says that delinking would lead to higher prices. It is the exact opposite. The whole aim here is to move to fixed prices. By increasing the electricity generator levy—we do not know whether the Conservative party supports or opposes it—we incentivise those energy companies to come off the levy and come on to contracts for difference. We are beginning the negotiations with industry, so that we can reduce that volatility in prices. As the CEO of E.ON has said today,
“For too long, the value in our energy system has flowed to those at the top of the chain. Today’s move starts to turn that around”,
because we can take out of the system the volatility and the spikes, which are so damaging for both family finances and business finances. But the shadow Chancellor had nothing to say on that.
Fuel duty was never lower in 14 years under the Conservatives than it is today. Of course, we are keeping all scenarios under review, but it is quite clear that the best way to bring down fuel prices is to de-escalate this conflict, not ramp it up like the Conservatives want to do.
The shadow Chancellor has nothing to say on international co-operation, nothing to say on global negotiations to keep the strait of Hormuz open, nothing to say on reform of our energy market and nothing to say on investment in our infrastructure. Why? It is because he has no plan. Why? Because he does not have any ideas. Why? Because his party has no economic credibility. Labour has the right plan for our country. The Conservatives would take us right back to the bad days of high inflation, high interest rates and the mess they made of our economy.
Bill Esterson (Sefton Central) (Lab)
The conflict in Iran is also a matter of energy security and the cost of energy. It is a reminder for the second time in four years of the dangers of being dependent on international fossil fuel markets and of the need to reduce our dependence. The Energy Security and Net Zero Committee has heard a lot of evidence about the importance of decoupling the price of electricity from the price of gas, so may I encourage the Chancellor to bring forward measures that will reduce the amount of time that gas can continue to set the price of electricity? It is a pity that the Conservative party did not take that approach following the invasion of Ukraine in 2022 when it had the chance.
Rachel Reeves
I thank the Chair of the Energy Security and Net Zero Committee for that question, and for his important work on this issue. There are two ways to reduce the number of days in which the gas price sets the electricity price. First is to invest more in home-grown renewables and in nuclear, so that more of the mix is made up of electricity. The second way is to delink gas and electricity prices, first by increasing the electricity generators levy to bring in money but also—this is crucial—by incentivising those companies that are currently getting the market price to go instead on to a contract for difference, which gives greater certainty for families, pensioners and businesses with their bills. That is exactly what we are doing.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Liberal Democrat spokesperson.
Daisy Cooper (St Albans) (LD)
I thank the Chancellor for advance sight of her statement.
The Chancellor should have come here today to explain how she was going to use the £20 million extra that the Treasury is pulling in every single day through higher VAT, a higher energy profits levy and other taxes, to tackle the immediate cost of fuel crisis that is facing families and businesses today. The Chancellor is fundamentally wrong when she says that a knee-jerk response would have put household finances at risk through higher inflation and higher interest rates. We need just to look at what other countries are doing. The Government could have used that £20 million to drive down prices—the price of petrol at the pump, the price of train and bus fares, and the price of home-charging electric vehicles. Slashing those prices could have helped the Chancellor to control inflation and higher interest rates. That is what other countries are doing, and what we Liberal Democrats are calling for.
The Liberal Democrats were the only political party to have in our manifesto a commitment to break the link between gas and electricity prices, so we are glad that 18 months on, the Government have finally listened.
In addition to the measures outlined today, may I ask the Chancellor about two specific things? First, has she spoken to any banks about rolling out low-interest loans for householders who want to do the right thing and adopt energy-saving measures, but are struggling with the up-front costs? Secondly, I met the Competition and Markets Authority on Monday. The CMA and Ofgem both agree that there is a case to answer about the broken energy market and why hospitality and small businesses are being blocked. Will the Chancellor join me in writing to Ofgem and asking it finally to investigate, without any further delay, a broken energy market that is blocking hospitality and small businesses from accessing the best deals?
Rachel Reeves
I welcome the fact that the hon. Lady and her party opposed the war and did not want the UK to become involved, unlike the Conservatives and Reform. However, I find what she has just set out fundamentally economically illiterate. The idea that a great fiscal policy is to close the strait of Hormuz! Why did we not think of that when we came to office? If we close the strait of Hormuz, all our problems will be over because we can get in all this money—that is what the hon. Lady is suggesting; that we will get some great windfall from a tax. The truth is that the IMF and every other forecaster are clear that tax revenues will be lower, not higher, because of the conflict in the middle east. The money that the hon. Lady wants us to spend simply does not exist. I am afraid she is falling into the failed economic policies of the Conservatives, who delivered untargeted, unfunded support that resulted in higher interest rates, higher inflation and higher taxes. She is suggesting an untargeted approach, but that is what got us into the mess we are in today.
I welcome the fact that the hon. Lady supports us on decoupling, which is the right thing to do with our gas and electricity prices. I regret that she and her party did not support the Planning and Infrastructure Act 2025, which enables us to build the homes and energy infrastructure that we need. On working with banks, the Department for Energy Security and Net Zero is working with every high street lender and energy company to help people who are struggling with their bills.
David Burton-Sampson (Southend West and Leigh) (Lab)
As my right hon. Friend mentioned, in 2022 Liz Truss launched a household energy support package that provided blanket support to every household, including the most well off. It was estimated to cost between £57 billion and £60 billion, just over the first six months; that was predominantly funded by borrowing. Does my right hon. Friend agree that the right and fiscally responsible thing to do during this crisis is to provide targeted support to those who need it most?
Rachel Reeves
More than one third of that support for energy bills went to the top third of households. That makes no sense at all, especially when those households then end up being burdened with higher interest rates on their mortgages, higher inflation in the shops, and higher taxes for years to come. The right approach is a targeted one, to keep costs and interest rates down for everybody. Of course, the best economic policy would be a de-escalation of this conflict, not ramping it up, as the Conservatives and Reform want to do.
Dr Ben Spencer (Runnymede and Weybridge) (Con)
The Chancellor will be aware of how important aviation is to the UK economy, particularly Heathrow, which is responsible for a huge amount of air freight and economic activity in my constituency. Given the reports regarding the supply chain for kerosene used in aviation, what measures is the Chancellor taking to ensure kerosene supply? What consideration has she given to tax relief to ensure that our aviation sector is sustainable and continues to contribute to the UK economy?
Rachel Reeves
As the hon. Gentleman knows, the Government are a big supporter of our airports and the aviation sector. That is why we are backing a third runway at Heathrow, a second runway at Gatwick, as well as expansion at Stansted and Luton airports. We are in regular contact with the aviation sector. It is currently not reporting any challenges with security of supply, but as the hon. Gentleman and the House would expect, we are planning for all different scenarios. The best way to ensure security of supply is to reopen the strait of Hormuz by working to de-escalate this conflict.
Jim Dickson (Dartford) (Lab)
I welcome the fact that in this time of economic shocks, the Government are playing their proper role in protecting UK households from the worst harms, and I thank the Chancellor for the work that she is doing with other Finance Ministers and Governments to bring about a de-escalation of the war—unlike others, who advocate for escalation. Does she agree that, in addition to taking the measures that she has talked about today, and that the Secretary of State for Energy Security and Net Zero has announced, she must continue, alongside the rest of the Government, to press other Governments for de-escalation of the war? That is the best way to protect UK households.
Rachel Reeves
That is why the whole House welcomed the Prime Minister and the French President convening a meeting of 50 countries on Friday, to work on how we could reopen of the strait of Hormuz and, crucially, on the protection of vessels travelling through it, when it is safe for them to do so; and it is why I have been working with the insurance industry to ensure that the right cover will be available to vessels, when it is possible to travel through the strait again. When I was in Washington last week, I met our allies from the Gulf countries, who made clear the importance of reopening the strait of Hormuz and preserving toll-free travel through it.
Greg Smith (Mid Buckinghamshire) (Con)
Prices are going up, and if the Chancellor’s 5p increase in fuel duty between September and next March goes ahead, we will be the European country with the eighth highest fuel duty. Surely this is not the time for that increase. If she wants certainty, the best thing she could do, at that Dispatch Box, is cancel the fuel duty hike.
Rachel Reeves
I understand the concerns that people have about filling up their car with petrol and diesel right now. We have introduced the cheaper fuel finder tool, so that people can compare prices and get the best deal when they fill up their car, and we have had all the petrol retailers into No. 11 Downing Street to ensure that we do not have any price gouging. There are still four and a half months until September. We are preparing for every eventuality. I have extended the fuel duty freeze and the 5p cut twice already, which means that the average motorist is saving £90 more than they would have done under the plans that I inherited from the Conservative party.
Ms Julie Minns (Carlisle) (Lab)
The conflict in the middle east has again highlighted just how vulnerable our off-grid rural households are to fossil fuel-driven energy shocks. Does the Chancellor agree with me that the warm homes plan is a major opportunity to upgrade rural housing and cut bills? Will she confirm what further steps the Government are taking to encourage the take-up of low carbon technology?
Rachel Reeves
I thank my hon. Friend for raising the challenges felt in many rural communities. Those challenges are why I put in place additional money to help people with the cost of heating oil. We recognised that the £150 off energy bills introduced in April does not apply to heating oil, and we wanted to ensure that people had support with that. We are also extending and increasing the generosity of the warm homes plan, in particular by including boiler upgrades. That will help people in all communities, including rural communities, where the cost of heating homes is often higher.
Stephen Flynn (Aberdeen South) (SNP)
We are very fortunate in Scotland to already produce more renewable electricity than we consume, and of course we produce more oil and gas than we consume as well. Unfortunately, we do not experience any benefit in our bills. The Chancellor had the cheek to say that she regards the oil and gas workforce as a vital asset to the country, but they certainly do not feel like that, because a thousand of them are losing their job every single month. If she believes in jobs, investment, energy security and reducing climate emissions, will she outline why she has not yet moved to the oil and gas price mechanism? Why is the Chancellor allowing the Energy Secretary to overrule her and prioritise imports of liquefied natural gas, rather than supporting domestic energy sources?
Rachel Reeves
People in Scotland, and right across the UK, benefited from the money off their energy bills. We are one of the few countries in the world where energy bills for households went down in April, rather than up. That was because of the changes that I made in the Budget. Of course, that benefits households in Scotland as well. Today, the Energy Secretary and I have announced changes around tiebacks. The previous Government could have made such changes, but they did not. Offshore Energies UK has said:
“developing fields as tiebacks reduces costs, lowers emissions, and extends the life of existing critical infrastructure.”
This policy will help to create and support more jobs in Scotland in this vital sector. If the Scottish National party is so concerned about jobs, why does it not back nuclear in Scotland, just as this Labour Government back nuclear in England and Wales?
Luke Murphy (Basingstoke) (Lab)
I welcome the Chancellor’s statement and the announcements made by her and the Energy Secretary. We have seen two fossil fuel shocks in just the past five years, which have done untold damage to our economy. Half the recessions since the 1970s have been caused by similar fossil fuel shocks. It is clear that the move to clean, home-grown energy is good for the economy, good for security and good for household bills. What conversations have she and the Energy Secretary had with organisations that might be taking up voluntary agreements? When might those agreements be made, and when will we see the benefit of breaking the link between gas and electricity prices?
Rachel Reeves
Investment in nuclear and renewables can ensure security of supply, and security of price. Investment in fossil fuels cannot secure security of price, because that price is determined by international markets. A third of power is electricity that is not covered by a contract for difference. We are trying to get that on to contracts for difference, so that we can stabilise prices and avoid the spikes that we see because of the volatility in fossil fuel prices that my hon. Friend mentioned. The Energy Secretary and I have already met representatives from the energy sector to discuss this policy and the negotiation of contracts for difference. After the negotiations, and given the incentive to avoid the higher electricity generators levy, we are confident that many businesses will be happy and willing to move, through a negotiated price, on to contracts for difference.
Mr Andrew Snowden (Fylde) (Con)
The strangely cheerful outing by Treasury Front-Bench Members today makes them the equivalent of the band playing on the deck of the Titanic, as the Government sink around them after hitting the iceberg that is Peter Mandelson. If the Chancellor thinks that anybody out there genuinely feels that she has made the economy more resilient to economic shocks, then I am sorry to say that she is living in cloud cuckoo land. I have met the families who have less money in their pay packets because of her tax raids. I have met the businesses that are making people redundant, cutting investments or facing closure because of her tax rises. If she wants to help people in the economy, she should cut taxes.
Rachel Reeves
Today we have announced an increase in the electricity generators levy to help the hon. Gentleman’s constituents, and all our constituents, to get lower prices for electricity. Instead of talking the country down, he might want to mention the fact that the economy grew by 0.5% in February, unemployment went down today, we have the fastest deficit reduction pace of any country in the G7, and in every single month that I have been Chancellor, wages have risen by more than prices. That is very different from what happened when his party was in charge.
Nick Smith (Blaenau Gwent and Rhymney) (Lab)
I thank the Chancellor for her statement. I agree that the best economic policy today is diplomatic policy. Given the situation in Iran, will she tell us more about her plans for putting economic pressure on the leadership there to de-escalate this dreadful situation?
Rachel Reeves
My hon. Friend is absolutely right that the best economic policy is diplomatic policy; it is reopening the strait of Hormuz, and de-escalating this conflict. That is why the Prime Minister hosted, with France, the coalition meeting last Friday, and why, when I met the US Treasury Secretary last week, we committed to doing more to increase the sanctions and the economic pressure on Iran. My team of Treasury officials met US Treasury officials last week to work out what more can be done, following the excellent work that our two Treasuries have already done together to increase economic pressure on Iran.
Tim Farron (Westmorland and Lonsdale) (LD)
As a result of this war, agricultural inflation is running at 7.6%—more than twice general inflation levels. Red diesel has doubled in price and fertiliser supply is under serious threat. Predictably, food prices are likely to rise, causing hardship for millions of people, partly because of Britain’s lack of food security. Is it not time for the Government to U-turn on the Conservative policy that they inherited, which means that England is now the only country in Europe that does not use its farm payments to actively support its farmers to produce food?
Rachel Reeves
I thank the hon. Gentleman for his representation of the agricultural sector. As he knows, on the two occasions when we have extended the 5p cut in fuel duty, a commensurate benefit has been applied to red diesel, but I recognise the challenges faced, in the current conflict, by the agricultural sector and other sectors that are big users of diesel. That is why we are working hard with industry to ensure that the sectors get the support that they need. Crucially, we are also trying to de-escalate the conflict and reopen the strait of Hormuz to improve the availability of diesel and fertiliser.
Melanie Onn (Great Grimsby and Cleethorpes) (Lab)
I congratulate the Chancellor on her statement. The setting of electricity prices to international gas prices has long been blamed for the erratic nature of our electricity bills—indeed, that was previously accepted by the Conservative party. While the Conservatives complained about it and did nothing, this Government are seeking to take action to disconnect those two issues. Will the Chancellor advise when she thinks that families will start to see a benefit from the decoupling of electricity prices from international gas prices?
Rachel Reeves
My hon. Friend knows what she is talking about, not least because she is the MP for Great Grimsby and Cleethorpes, but also as a result of her previous career before taking her seat at the last election. There are two ways in which people will benefit. The first is in the short term, through the higher electricity generator levy. We have increased the rate from 45% to 55%, which will bring in money this year that can help us as a Government to relieve some of the pressure on families and businesses. We will also use the higher levy to negotiate the contracts for difference at a good price for bill payers and taxpayers so that we get rid of that volatility. I am confident that in the months ahead, while we have the higher electricity generator levy in place, we will be able to negotiate the new contracts and reduce the volatility. Crucially, the reduction in volatility will benefit both households and businesses.
Sir Julian Lewis (New Forest East) (Con)
May I welcome the couple of positive references that the Chancellor made a little while ago to civil nuclear power? Given that we have in this country Rolls-Royce, a world-leading specialist in the design and construction of small modular mobile nuclear reactors, what plans do the Government have to support this particular sector so that we are less dependent on the whims of Iranian dictators in future?
Rachel Reeves
I was really pleased last week to sign with Rolls-Royce the contract for the first fleet of small modular reactors in the UK. They will be located on Anglesey, but they will create jobs for people from Derby to Warrington and from Manchester to Sheffield, and of course in north Wales and on Anglesey itself. We are also working with Rolls-Royce as it looks to secure contracts overseas, as it already has with Czechia, creating more good jobs here in Britain for this exciting new technology, which will also have the benefit of secure, home-grown energy.
Ben Goldsborough (South Norfolk) (Lab)
Because of the action of this Government, rural communities in Norfolk received the highest payment of support for heating oil, with more than £3 million in the whole of England. However, a huge concern is that more than 60% of the applications that have been made have not been completed by the local Conservative-run council. What will the Chancellor’s action be to ensure that Norfolk county council gets these payments into the pockets of my constituents?
Rachel Reeves
I am sorry to hear that the Conservative-run council in South Norfolk has not completed 60% of the applications for help with heating oil. The Government made more than £50 million available and targeted it at such places and at my hon. Friend’s constituents, who need it most. I am very happy to follow up with the council to ensure that people get the support they need.
Carla Denyer (Bristol Central) (Green)
I am relieved that the Government are now committed to breaking—[Interruption.]
Madam Deputy Speaker (Caroline Nokes)
Order. Can we proceed without an unseemly exchange across the Dispatch Box? I would like to be able to hear the question from the hon. Member for Bristol Central (Carla Denyer), and I am sure that the Chancellor might also like to hear it so that she can respond.
Carla Denyer
I am relieved that the Government are now committed to breaking the price link between expensive gas and cheap renewables, but given that the proposed solution is voluntary for electricity generators, how will the Chancellor ensure that the proposals that she and the Secretary of State for Energy Security and Net Zero are putting forward will actually deliver substantially lower bills? If I send them to her office, will she consider the proposals from the think-tank Commonwealth for a mandated, not-optional, fixed-price model to ensure that billpayers are not left at the mercy of the volatile international fossil fuel market?
Rachel Reeves
As I set out in my statement and as the hon. Lady said, we are delinking gas and electricity prices. That is the right policy, and we will achieve it through the increase in the electricity generator levy. By increasing it from 45% to 55%, we are providing a very strong incentive for companies that still get market prices to move on to contracts for difference to avoid the electricity generator levy. If they do not go on to a contract for difference, they will continue to pay the electricity generator levy, which I have extended today, and we can use that money to help people with their prices.
The hon. Lady’s commitment to lower prices and more secure supply would be a bit more credible if the Green party did not oppose new nuclear and the Planning and Infrastructure Act 2025, which will make it easier to build the infrastructure investment in renewables and clean energy that we desperately need to lower bills and get ourselves off fossil fuels.
Andy McDonald (Middlesbrough and Thornaby East) (Lab)
I thank the Chancellor for her statement and for the work that she and the Energy Secretary have done in this regard. The focus on renewables and the decoupling of gas and electricity is most welcome, but may I point something out? One of the problems that we inherited from the Conservatives, who have the gall to complain about the high cost to businesses and households, is that we are heading towards curtailment fees in 2030 of around £6 billion per annum. Would the Chancellor be kind enough to meet me and my hon. Friend the Member for Camborne and Redruth (Perran Moon) to discuss some of the technological options available to us to mitigate those soaring costs?
Rachel Reeves
I thank my hon. Friend for the interest that he has in this really important area. We are doing a number of things on this front. The Planning and Infrastructure Act, which passed through Parliament at the end of last year despite the opposition of the Conservatives and the Greens and the indifference of the Liberal Democrats, will enable us to build the infrastructure to get energy from offshore wind to people’s homes and businesses, as well as investment in battery technology so that we can store energy. My hon. Friend will also have heard the announcement last week that we will enable differential pricing at different times—for example, to be able to get free electricity in some cases at weekends, when the demand for energy is lower. Those are some of the things we are doing to better balance demand and supply on the grid, and I would be very happy to meet him to discuss the matter further.
Richard Tice (Boston and Skegness) (Reform)
Is the Chancellor aware that the price of gas in the US is 10% lower than at the start of the war, while here in the UK it is 30% higher? That proves that if we produce what we consume, there is actually a domestic price of gas. Will she have a word in the shell-like ear of the Secretary of State for Energy Security and Net Zero and tell him to get on and approve the licences at Jackdaw and beyond, including onshore? That would mean more gas, more production and lower prices.
Rachel Reeves
I think that the hon. Gentleman has just said that he is in favour of fracking. If so, I look forward to campaigning against him on that.
Amanda Martin (Portsmouth North) (Lab)
I thank the Chancellor for her statement and for the work she is doing at this globally difficult time. As a proud coastal, naval and defence city, Portsmouth understands that economic, national and climate security are inseparable, from household bills to flood resilience and defence jobs. Will she reassure families and businesses in my constituency that today’s actions, such as decoupling, will protect them from rising costs, support the jobs that are so vital to our city and ensure that we have a city for future generations?
Rachel Reeves
I thank my hon. Friend for standing up for her constituents in Portsmouth. The purpose of decoupling gas and electricity prices is to reduce the volatility. We all know from our constituencies how much lower-income families and pensioners, in particular, struggle with volatility in gas and electricity prices, because electricity is an essential and people need it for everyday use. Decoupling will smooth out some of the volatility in the price of energy, giving greater certainty to families, pensioners and businesses, which all have to contend with the volatility of the fossil fuel market. That is why we want to move to more contracts for difference, and that is what today’s policy will achieve.
Mr Lee Dillon (Newbury) (LD)
In her statement, the Chancellor outlined a plan for tomorrow, but no help for today. The residents of Newbury—the small businesses and farmers—want to know how high the Chancellor will allow the prices of petrol, red diesel and fertiliser to go before she decides to take positive action and reduce the impact of the cost of living crisis on those people. How high do those prices have to go, Chancellor?
Rachel Reeves
In Newbury, and indeed in all of our constituencies, people got £150 off their energy bills in April this year. There are very few countries in the world where energy bills fell in April; in most countries they are going up. That was possible only because of the measures I took in last year’s Budget. I have extended the 5p cut in fuel duty two times already since becoming Chancellor. Obviously, we are following very carefully what is happening in the middle east and looking at the impact on the UK economy, families and businesses, and we will be ready to respond. However, the best way to get bills and prices at the pump down is to de-escalate this conflict and reopen the strait of Hormuz. That is the policy of the hon. Gentleman’s party, and it is the policy of this Government, because that is the best way to help people with the costs of energy.
Tahir Ali (Birmingham Hall Green and Moseley) (Lab)
The Prime Minister was right not to take part in the war led by Donald Trump and Netanyahu, and the Chancellor is right not to engage in a knee-jerk reaction to this economic difficulty. However, will she keep under active consideration those who are most vulnerable—those who are on benefits and the hard-working families who will struggle to put food on the table, choosing between that and paying energy bills—and if need be, will action be taken immediately?
Rachel Reeves
When the previous Government intervened in the case of an energy price shock, more than a third of the benefit went to the top third of income earners. That makes no sense at all when Government resources are stretched and when it resulted only in higher interest rates, higher inflation and higher taxes for the exact same people. That is why we are looking at what targeted action could be taken. It is also why, at the beginning of this month, the new state pension increased by up to £575 and we got rid of the two-child limit on universal credit, which will lift almost half a million children out of poverty over the course of this Parliament.
Carla Lockhart (Upper Bann) (DUP)
No farmers means no food, no hauliers means empty shelves, and no construction means a country that is not moving forward. In Northern Ireland, those three industries are now taking to the streets to protest, which is clear evidence that this Government’s inaction is pushing them to the brink. Will the Chancellor today do the right thing and commit to cutting fuel duty, scrapping punitive carbon taxes, and properly supporting the industries and sectors that are fundamental to this country’s security and stability?
Rachel Reeves
In Northern Ireland and across the country, people got £150 off their energy bills in April, and of course Northern Ireland was the biggest beneficiary of the support for heating oil—that support went disproportionately to Northern Ireland, given its greater reliance on heating oil compared with the rest of the country. The British industrial competitiveness scheme will reduce business energy costs for 10,000 manufacturing firms from this year, taking up to 25% off their electricity costs, and decoupling will reduce electricity prices for both businesses and households. When those contracts for difference come in, that will have a direct impact, but in the meantime the higher electricity generator levy that is coming in this year will provide revenues so that the Government can help cushion this shock for businesses and families.
Several hon. Members rose—
Madam Deputy Speaker (Caroline Nokes)
I plan to let this statement run only until 2 o’clock. Many Members are still standing, so short questions and perhaps short answers would be very helpful in allowing me to get in as many as possible.
Andrew Pakes (Peterborough) (Lab/Co-op)
The Chancellor is right: this was not our war, but its impacts are being felt by businesses and families in my constituency. What is almost as shocking as the recent price hike is how exposed our country is because of a decade of under-investment by the Conservative party in nuclear, onshore wind and updating our power networks. Can the Chancellor reassure me that while we keep a razor-sharp focus on the cost of living for families, we will also do our utmost to speed up the development and renewal of our energy networks, so that we can power this country from our own sources and not just rely on imports?
Rachel Reeves
My hon. Friend is absolutely right. This is not our war—we chose not to join it, unlike the Conservative and Reform parties, which were egging us on to do so. However, we do need to become less exposed to global fossil fuel markets. That is why we passed the Planning and Infrastructure Act 2025, which will enable us to build the energy infrastructure we need. It is why we signed off Sizewell C and a fleet of small modular reactors; it is why we are giving planning permission to solar farms; and it is why we have ended the effective moratorium on onshore wind—the cheapest form of electricity—to keep prices down for families, businesses and pensioners.
Munira Wilson (Twickenham) (LD)
The Chancellor said in her statement:
“Every choice I make will be about keeping costs down for families and businesses”.
However, when I speak to small business owners on high streets across my constituency of Twickenham, Teddington and the Hamptons—especially café and restaurant owners—they tell me that the soaring energy and food prices that are a result of war are only compounding the pain they were feeling as a result of the Chancellor’s choices to hike national insurance for employers and, in some cases, double their business rates. What action will she take this month and this quarter, not in a year’s time, to help those businesses stay afloat? We need them to stay open for the sake of our communities.
Rachel Reeves
The best thing we can do as a Government is to keep inflation and interest rates down. Since I became Chancellor, wages have risen faster than prices in every single month, giving people more money to spend, and interest rates have been cut six times—which will benefit all of our constituents, but those in London perhaps most of all, given that house prices are more expensive in places such as Twickenham—putting more money in people’s pockets. Today’s announcement about the British industrial competitiveness scheme will take up to 25% off energy bills for 10,000 businesses from this month, and decoupling will help all businesses with their energy costs. The electricity generator levy will bring in money this year, and then the new contracts for difference will reduce volatility and price spikes for all businesses.
Alex Baker (Aldershot) (Lab)
In my constituency, I hear from many small businesses that are worried about rising energy bills and what that means for their ability to grow and create jobs. As such, I welcome the measures that the Chancellor has outlined today, particularly decoupling gas and electricity, which will help to safeguard my constituents from these international spikes. However, everyone in this situation has to play their part. The Government are doing their bit, but could the Chancellor set out what conversations she is having with the energy companies themselves on how they can further support businesses with their energy costs at a time of global instability?
Rachel Reeves
I thank my hon. Friend for that question, and I understand the concerns that families and businesses have about the cost of energy and the risk of second-round effects if those costs are passed on to other goods and services in the economy. That is why my focus is on keeping interest rates and inflation down for everybody, and it is also why we are working to de-escalate this conflict. We are also working with energy companies to ensure that people who are struggling with energy debt, for example, are supported, and that people are not taken off contracts.
Dave Doogan (Angus and Perthshire Glens) (SNP)
On 3 March, during the Chancellor’s vacuous spring statement, I raised with her that the war which had just started in the middle east would have an inevitable and immediate consequence for energy prices. I asked her what she was going to do about it, and she said that she had no plans to do anything about it. Today, the Chancellor comes to the Chamber like the coo’s tail, talking about fiddling about with contracts for difference next year while my constituents are currently paying nearly £2 a litre for diesel. In Ireland, the Government spent €750 million to support farmers, hauliers, agriculture, fisheries and household energy bills. If the Chancellor were to do the same, the figure would be £8 billion. Where is the £8 billion for our communities, Chancellor?
Rachel Reeves
In the past two weeks, we have announced up to 25% off energy bills for 10,000 manufacturers, starting this month. Today, we have announced tiebacks to exploit more of our energy resource in the North sea, which has been welcomed by OEUK, and we have announced an increase in the electricity generator levy to bring in money to help with the costs of energy. We are one of the few countries in the world where energy bills went down in April, because of the decisions that I made in my Budget. Since I became Chancellor, wages have risen by more than prices in every single month and interest rates have been cut six times. That is the difference we are making. It would be nice if the SNP used the record funding we have given it to cut NHS waiting lists, rather than seeing them rise and rise.
Torcuil Crichton (Na h-Eileanan an Iar) (Lab)
I thank the Chancellor for her statement and her nimble response to the energy shock, including support for heating oil consumers, who make up half the households in Na h-Eileanan an Iar. The future of energy security is not an either/or. We must pursue renewables with a community share in the wealth of wind, and we must use the tiebacks that she detailed to exploit existing licences in the North sea fully. Will the Chancellor encourage other Ministers to match her commitment by hastening the review of Jackdaw and Rosebank? That would not just ensure energy security, but send a message to workers that we are with them in the North sea and the wild Atlantic for years to come.
Rachel Reeves
My hon. Friend is absolutely right that we need a balanced energy policy. While some parties oppose renewables, some parties oppose nuclear and some parties—oh, they have gone—oppose any oil and gas, this Government have a balanced energy policy. We are investing in new nuclear—small modular reactors and Sizewell C; we are investing in renewables—solar and onshore and offshore wind; and we are ensuring a bright future for North sea oil and gas. That is why today we set out our policy and more detail on tiebacks. It is also why, in the not-too-distant future, the Energy Secretary, in a quasi-judicial way, will make a decision on Jackdaw and Rosebank after the courts quashed the previous Government’s decision.
Pippa Heylings (South Cambridgeshire) (LD)
We welcome the Government’s announcement on cutting the link between wholesale gas and electricity prices, which will help to shield families across the UK from volatile fossil fuel prices. They are using the very measure that the Liberal Democrats proposed more than a year ago. It is now time to go further and faster to fix a broken energy market that results in households and businesses that are powered by solar and wind not having cheaper energy bills, and even having to pay on their energy bills to turn off wind farms in British waters. I have written to the Chancellor and the Secretary of State for Energy Security and Net Zero. Will the Chancellor meet me to discuss our proposals to accelerate reforms, bring down energy bills and secure our energy supply?
Rachel Reeves
I agree with the hon. Lady about decoupling. We are using an increase in the electricity generator levy to bring in money immediately and to incentivise companies to move on to contracts for difference. In terms of having to pay when solar and wind cannot be used, what the hon. Lady says would be a little more plausible if the Liberal Democrats had not sat on their hands during consideration of the Planning and Infrastructure Bill. That legislation will enable the energy infrastructure to be built that will bring electricity to people’s homes, lower people’s bills and give us the energy security that we want to see.
Perran Moon (Camborne and Redruth) (Lab)
The Chancellor will know that AutoTrader announced last week that, for the first time, the average cost of a new electric vehicle has fallen below the average cost of a new petrol vehicle. There has never been a better time to switch to EVs. Can the Chancellor elaborate on how these targeted announcements, and some of the changes she is making today, will support the switch to electric vehicles?
Rachel Reeves
My hon. Friend makes a good point. There are a couple of things we are doing today to make it more cost-effective to get an electric vehicle. First, the decoupling of gas and electricity prices will mean that electricity prices will not be set by high gas prices. That reduces the costs of filling up an electric vehicle with electricity. We are also making it easier for people to install electric vehicle charge points, including on their streets and in their homes. We are making solar panels more available, including in high street shops, to enable people to benefit from that cheap electricity, which they can use to power their homes and their cars.
Robert Jenrick (Newark) (Reform)
Kevin Brewer is a domiciliary care worker from Northern Ireland. He says that he loves his job, but he drives 70 miles every day. He told the BBC this week that for the first time he considered phoning in and saying that he could not do his job. In the end, he decided to put the cost of the fuel on his credit card. Chancellor, people are suffering across the country. I invite her to meet people such as Kevin at the national fuel tax protest on Whitehall on Monday, where motorists, white van men and women, care workers and many others from across the United Kingdom will come together to ask her to take action now to cut VAT on fuel and to say that she will not increase fuel duty in September.
Rachel Reeves
Fuel duty was never lower in the 14 years when the right hon. Gentleman was a Conservative Member of Parliament than it is now. As I have said on numerous occasions, we are keeping fuel duty under review. The best way to reduce costs for people who are reliant on their cars is to de-escalate this conflict, which is the exact opposite of Reform UK’s policy. It wanted to join in this conflict and said when the conflict started that we should stand with America. I do not agree that we should be standing with America; we should be standing up for our own country and families and businesses in our country.
Harpreet Uppal (Huddersfield) (Lab)
It is important that we look at long-term measures such as decoupling gas and electricity prices, because we know that previous temporary measures have not stopped our exposure to these shocks, leading to further insecurity for residents and businesses. Can the Chancellor say how quickly households and businesses such as textile manufacturers in Huddersfield will benefit from this new pricing model? Can she say a little more about accelerating vital grid infrastructure?
Rachel Reeves
I thank my hon. Friend for raising the concerns of people in Huddersfield. From this month, we are helping 10,000 manufacturing businesses in the industrial strategy sectors with the cost of electricity, reducing it by up to 25%. Today, we have announced that we are increasing the electricity generator levy, which will bring in more money to the Exchequer. We can use that money to help people with the costs of this war which we did not start, but of which people in Huddersfield, Leeds and around the country are feeling the consequences.
Steff Aquarone (North Norfolk) (LD)
On heating oil, members of the Chancellor’s Treasury team have been keen to point out that the small amount of funding—the equivalent of about £35 a household—was just the first step. Can she outline when the next step will come to support houses that are dependent on heating oil?
Rachel Reeves
We were pleased to be able to announce tens of millions of pounds to help people with the cost of heating oil, in the same way that we brought down gas and electricity bills for families and pensioners across the UK because of my Budget decisions last year. It is important that local authorities now make sure that that money is available to people. We heard from my hon. Friend the Member for South Norfolk (Ben Goldsborough), for example, that 60% of applications in Norfolk have not been processed. We need to make sure that that money gets to the people who need it. As I have said, we will keep additional support under review. The best way to bring down bills for families, businesses and pensioners—the hon. Gentleman’s party agrees with this—is to de-escalate this conflict and reopen the strait of Hormuz. That is why our diplomatic policy is so important.
John Whitby (Derbyshire Dales) (Lab)
According to modelling from the National Energy System Operator, gas will still set the price of electricity 30% of the time by 2030, despite most of the energy being produced from renewables. Solar and wind are far cheaper than other forms of energy, and it is right that households across the UK, and in Derbyshire Dales in particular, can benefit from the lower prices. Will the Chancellor therefore outline what steps she is taking to decouple the price of renewables from the price of gas and to drive down energy prices for homes in Derbyshire Dales?
Rachel Reeves
This is the second energy price shock caused by a lack of availability of oil and gas in just four years. It shows that we need to invest more in home-grown energy to ensure security of supply and price to help people in Derbyshire Dales and right across the country. That is why we are increasing the electricity generator levy. We are using that money to help people now, but crucially as an incentive to get electricity providers on to contracts for difference, so that we do not have to pay more for electricity just because the price of gas is high.
Ayoub Khan (Birmingham Perry Barr) (Ind)
The Chancellor said that we did not start this war and have not joined this war, and the reason for that is that this war is illegal. Iran never posed an imminent threat. Pakistan has taken valiant steps to negotiate a deal, which led to Iran opening the strait of Hormuz, but unfortunately and absurdly, Donald Trump is blocking the strait, causing a major economic crisis for everyone. I welcome the 5p cut in fuel duty and the £150 reduction in energy bills, but the reality is that they are having an insignificant impact on families, especially vulnerable families. What imminent steps will the Chancellor take to help and shield them?
Rachel Reeves
I join the hon. Gentleman in paying tribute to Pakistan for the work that it is doing to de-escalate this conflict by hosting peace talks. I would expect all Members of the House to urge all parties to return to those negotiations as quickly as possible, so that we can end the bloodshed but also ensure that bills come back down for families and prices fall at the pumps. We are already taking action to reduce household energy bills through the help with heating oil. Today’s announcements on decoupling and tiebacks, and last week’s announcement on reducing business energy costs through the BIC scheme, are all things that we are doing to help families and businesses with the cost of electricity.
Catherine Atkinson (Derby North) (Lab)
Does the Chancellor agree that economic security, energy security and national security all go hand in hand, which is why home-grown lower-carbon power that we control is so important? Can she tell us more about how small modular reactors, which are being delivered by Rolls-Royce and are backed by this Labour Government, will play their part in delivering power, security and good British jobs?
Rachel Reeves
It was great to meet Rolls-Royce apprentices with my hon. Friend in Downing Street last week to see what difference this Government’s investment in small modular reactors through the National Wealth Fund will make. The investment in nuclear is creating good jobs that pay decent wages, providing export opportunities through this new technology and, crucially, giving us energy security on both supply and price.
Sorcha Eastwood (Lagan Valley) (Alliance)
Just so the Chancellor is aware, my constituents in Lagan Valley did not get £150 off their electricity bills. I am sure the Chancellor knows that that is because Northern Ireland is not in the same electricity market as the rest of the UK. Even if we add together the sums that we received through the Barnett consequentials, they do not total £150. We hope that her lack of knowledge does not reflect the importance of Northern Ireland when this Government come to tackling the cost of living crisis. When will the Chancellor meet my colleagues in the Northern Ireland Executive to discuss how to help us through this crisis?
Rachel Reeves
Northern Ireland benefited from the Barnett consequentials, with the money going to the Northern Ireland Executive. As the hon. Lady says, Northern Ireland is in a different electricity market. At the same time, we listened carefully to what MPs and Members of the Northern Ireland Executive said about Northern Ireland’s exposure to heating oil. When we made the support available, we did so through local authorities and locally, rather than as a national scheme, recognising the higher exposure to heating oil in Northern Ireland than anywhere else in the country.