Middle East: Economic Update Debate

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Department: HM Treasury

Middle East: Economic Update

Alistair Carmichael Excerpts
Tuesday 24th March 2026

(1 day, 11 hours ago)

Commons Chamber
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Rachel Reeves Portrait Rachel Reeves
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That is why what we did in the Budget last year was so important. In other countries, domestic energy bills are now going up, but because of the measures that I took in my Budget last November, energy bills will fall from 1 April, despite everything that is happening in the middle east. However, what would have the biggest impact on bills is an escalation in this conflict, which is what the Conservative party initially wanted to happen.

Alistair Carmichael Portrait Mr Alistair Carmichael (Orkney and Shetland) (LD)
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Shetland is home to one of the largest onshore wind farms in the country, the operators of which are paid millions not to generate electricity because of grid constraints. As a result, the announcement this morning of a trial of discounted energy rates for communities such as ours will be met—possibly—with some excitement. When will we hear the details of how that will work and what it will mean in terms of reductions to the bills of my constituents?

Rachel Reeves Portrait Rachel Reeves
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On the point about national grid infrastructure and why we end up paying for energy that cannot be used, we have to speed up those connections. That is why I spoke about consulting on indemnities for building out infrastructure, even in the case of judicial review. We must act in the national interest and get this infrastructure built. At the same time, the Secretary of State for Energy Security and Net Zero will set out in more detail the specific ways in which we can bring down prices for communities, including those of the right hon. Member.