Spring Forecast

Bill Esterson Excerpts

Tuesday 3rd March 2026 Commons Chamber

[Rachel Reeves]

We have taken action to reduce energy bills by £150 from next month. As I said in my speech, because of the stability that we have returned to the economy, and the cuts in interest rates, in inflation and in the cost of Government borrowing, we are in a strong position to respond to the headwinds from the middle east and Iran.

[Bill Esterson (Sefton Central) (Lab)]

The conflict in the middle east is a reminder of the need to reduce our dependence on fossil fuels, which set the price of our energy bills for consumers and businesses; 80% of the time, gas sets the price of electricity. The £117 reduction in bills that the Chancellor announced in the Budget is welcome, but will she recommit to giving long-term stability to our energy prices, and to bringing bills down in the long term, by supporting investment in the generation of renewables and nuclear, in the expansion of the grid, and in battery storage, which will help domestic and industrial consumers at the same time?

[Rachel Reeves]

I thank the Chair of the Energy Security and Net Zero Committee for that important question. He is absolutely right: whether through the successful auction round 7 that we have just completed for investment in new renewable energy, or through the planning reforms to make it even easier to build grid connections and wind farms, we are taking action to secure our energy supplies. Through the spending review last year, we invested in Sizewell C and small modular reactors, which will be built in Wales by Rolls-Royce.