Middle East: Economic Update

Debate between Alex Baker and Rachel Reeves

Tuesday 21st April 2026 Commons Chamber

[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.

Middle East: Economic Update

Debate between Alex Baker and Rachel Reeves

Monday 9th March 2026 Commons Chamber

[Rachel Reeves]

I can confirm that there are no financial impediments to warships going to the middle east. Money is available through the special reserve for personnel and contracts for all our operations in the middle east.

[Alex Baker (Aldershot) (Lab)]

As the Member of Parliament for the home of the British Army, I thank the Chancellor for her support for our armed forces. My constituency is also home to innovative defence and aerospace businesses, many of which are ambitious to expand and to play their part in strengthening our national security, but that depends on being able to access the investment that they need to scale up. Will the Chancellor reassure those businesses in my constituency that this Government will continue to work closely with the financial sector to ensure British defence and advanced manufacturing companies can access the capital that they need to invest, grow and create good, skilled jobs here in the UK?

[Rachel Reeves]

As my hon. Friend knows, we have increased the funding available to both UK Export Finance and the National Wealth Fund to invest and support our defence industry. I also support the work that she and my hon. Friend the Member for York Outer (Mr Charters) are doing in ensuring that the financial services sector also lends to defence businesses, including scale-up businesses.

Spending Review 2025

Debate between Alex Baker and Rachel Reeves

Wednesday 11th June 2025 Commons Chamber

[Rachel Reeves]

For London, today we have increased the spending power of the police by 2.3% in real terms every year; we have record investment in the affordable homes programme, which includes building new homes in London; and we have free school meals, lifting around 10,000 children in London out of poverty, and much more. We are also backing a third runway at Heathrow and investing in tunnelling to take HS2 to Euston. This is a good spending review for London, but most importantly, it is a good spending review for the whole United Kingdom.

[Alex Baker (Aldershot) (Lab)]

I congratulate the Chancellor on the spending review, and welcome her commitment both to defence spending and to our being a defence industrial superpower, which is vital to my community in Aldershot and Farnborough. This week, my hon. Friend the Member for York Outer (Mr Charters) and I published a report entitled “Rewiring British Defence Financing”, which supports the Chancellor’s work to fire up our defence industrial base. As part of that, will she support my campaign for a UK-led multilateral defence security and resilience bank to finance our national resilience, support our allies, and keep our country safe?

[Rachel Reeves]

I thank my hon. Friend for the work that she and my hon. Friend the Member for York Outer (Mr Charters) have done to make the moral case for financial services funds investing in defence, which is what keeps our country safe. As we uplift our defence spending, we want to get value for money. That is why we were so pleased that, in the deal that we did with the European Union, we secured a defence industrial partnership with the EU.

Spring Statement

Debate between Alex Baker and Rachel Reeves

Wednesday 26th March 2025 Commons Chamber

[Rachel Reeves]

I am sure that the relevant Health Minister will be willing to meet with the hon. Lady to talk about that. Because of the investment that we put into our national health service at the Budget last year—more than £20 billion of additional funding—we are able to start to rebuild our NHS and reduce waiting lists. Indeed, we have done that now for five months in a row.

[Alex Baker (Aldershot) (Lab)]

As we secure Britain’s role in a changing world, I welcome the Chancellor’s focus on defence innovation and I thank her for referencing my community, Aldershot and Farnborough. We are ready to serve.

When it comes to defence innovation, too many small and medium defence businesses in my community struggle to get access to the banking and finance facilities they need, often on the basis of self-imposed environmental, social and governance criteria. Will the Chancellor join me in welcoming the investors and financial institutions that have responded to the campaign that I am leading with my hon. Friend the Member for York Outer (Mr Charters), calling on our banks and our fund managers to broaden their approach so that we can defend our country, support Ukraine and fire up our industrial base?

[Rachel Reeves]

I was pleased to mention my hon. Friend’s constituency in my statement. As the home of the British Army, on behalf of this Government, we thank the people of Aldershot and Farnborough for the service that they give our country every single day.

My hon. Friend is right to mention the importance of companies in the defence sector, whether big or small, being able to access finance. That has never been more important than it is today, when the threats posed by Putin continue to grow. I therefore urge everyone in financial services to do their part to make sure that our fantastic defence start-ups have the money that they need to grow and help defend our country and our values.