Middle East: Economic Update

Debate between Rachel Reeves and Nick Smith

Tuesday 21st April 2026 Commons Chamber

[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.

Spending Review 2025

Debate between Rachel Reeves and Nick Smith

Wednesday 11th June 2025 Commons Chamber

[Rachel Reeves]

It is difficult to tell whether the hon. Gentleman supports the spending review and the additional money that we are putting into public services, or is against it. The settlement for the NHS means 3% real-terms growth a year, and for the police the figure is 2.3% a year. There is also an increase in per-pupil funding, as well as a real-terms increase in the schools budget, so I am not exactly sure what the hon. Gentleman’s complaint is.

[Nick Smith (Blaenau Gwent and Rhymney) (Lab)]

There was a terrible, dangerous coal slip in my constituency last autumn, and the coal tips safety funding announced today is hugely welcome. It is great to see our Labour Government standing up for Wales. Looking forward, however, may I ask the Chancellor please to review the miners’ staff superannuation scheme? Hard-working families deserve fairness in their retirement, and I am sure that she will give them a fair hearing.

[Rachel Reeves]

I am very pleased that we were able to make this multi-year commitment on coal tip safety. The Government provided money for this in last year’s spending review, but that was for just one year, and today we have been able to give certainty that money will be available for the vital work that is necessary. I thank my hon. Friend for welcoming it; it is a shame that Plaid Cymru did not.

My hon. Friend has been a staunch supporter of reform of the miners’ pension scheme. We made reforms in the Budget last year, but I will ensure that the relevant Minister meets him to discuss what more we can do to secure a fair pension for miners in retirement.