Middle East: Economic Update

Lord Ahmad of Wimbledon Excerpts

Tuesday 28th April 2026 Lords Chamber

[Lord Livermore (Lab)]

It was estimated at the time to be costing us some 4%, subsequently estimated to be 8%, of GDP, so he has put up massive tariff barriers with our biggest partner, which is not something that is in favour of free trade. He talks about it being tariff free, but he knows that the trade barriers in place are equivalent to some 20% in terms of tariff.

[Lord Ahmad of Wimbledon (Con)]

My Lords, I declare my interest as a member of the International Relations and Defence Committee. Does the Minister agree with the assessment made by the chair of the committee, the noble Lord, Lord Robertson, about complacency in the Government? Bearing in mind that the theme of this Statement is the Middle East and the Strait of Hormuz, we have seen the Prime Minister, together with President Macron, announce UK leadership as and when this conflict ends—we hope it will be soon—in marshalling and providing support for the Strait of Hormuz. With the defence investment plan due, to quote the Minister, “in due course”, does he think that is a sufficient response, bearing in mind the urgency of providing our allies, particularly those in the Gulf, with the required support?

[Lord Livermore (Lab)]

I have the greatest respect for my noble friend Lord Robertson but I disagree with him. Looking at the decisions that the Prime Minister and Chancellor have taken, we are delivering the biggest sustained increase in defence spending since the Cold War. As I have said already, and I am sure will continue to say, the defence investment plan will be published in due course. The noble Lord spoke of the international action that the Prime Minister has led; he knows that the Prime Minister has led global action by convening with the President of France a summit of nations to work together to support freedom of navigation through the strait. He will know that the UK will continue to play its part through engagement with many industries, including the insurance industry, to support shipping when the conditions allow.