Taxation (Energy and Vehicles) Bill

Daisy Cooper Excerpts

Wednesday 1st July 2026 Commons Chamber

[The First Deputy Chairman]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

I rise to speak to new clauses 1 to 3. New clause 1 would require the Chancellor to publish a report on the use of additional receipts arising from the increase in the electricity generator levy from 45% to 55%. New clause 2 would require the Chancellor to review the adequacy of the approved mileage allowance payment rate set under clause 2 in respect of care workers using a personal vehicle in connection with their employment. New clause 3 would require the Chancellor to publish an assessment of the combined impact on haulage costs and consumer prices of the temporary vehicle excise duty rates for goods vehicles.

As I indicated on Second Reading, we support what the Government are trying to do with these measures. However, it is really important for trust in politics that when Ministers stand at the Dispatch Box and say that the intention is to use the levy to supporting households and businesses with the cost of living, there is a report to demonstrate to the public that the money does, in fact, go towards measures that do just that, rather than the money disappearing into Treasury coffers. I urge the Exchequer Secretary to accept new clause 1, which would provide transparency to Parliament and the public.

Let me turn to new clause 2. Some Members will know that I have spoken repeatedly in this House about the extraordinary work carried out by our care workers. The salary of our care workers, and the status they are given, is nowhere near big enough to recognise the extraordinary work that they do. I have spent several hours with Abbots Care in my constituency, watching how their care workers work. They have an enormous emotional investment in every single client; they observe their habits and personality, and they know when something is slightly out of whack or not quite right. A care worker’s routine can suddenly change if there an emergency with another client. There may be something wrong with the client’s medication and they have to make phone calls that they had not expected to make. They are experts on their client and on people, but they are not experts on tax.

I was very heartened that the Exchequer Secretary said on Second Reading that employees who do not receive the mileage allowance can claim back an equivalent amount. I was also heartened to hear him say that he would look into ways to make it easier for care workers. Could he outline what those measures might look like? We owe care workers so much thanks for the work that they do. It is diligent, hard work to make sure that our loved ones are cared for and can live with dignity. We should make the system as simple as possible for them. It might be a case of care organisations and providers sending letters to care workers to tell them what they are entitled to, or it might be a case of requiring HMRC to proactively write to them, but we must bend over backwards to make sure that care workers can benefit from this particular measure.

As I said on Second Reading, we welcome the measure, but we urge Ministers to think very carefully and to go as far as they can to make sure that every care worker who is entitled to this benefit understands that it is there for them. It must be made as simple as possible for care workers, and we must make it clear that it will not end up in a drawn-out dispute with HMRC; I urge the Exchequer Secretary to think about a dedicated hotline for care workers, in case we need one down the line. Finally, new clause 3 requires a report on this particular measure.

Our three new clauses are all transparency measures, and I hope that the Government will look favourably on them.

[Dan Tomlinson]

I thank the shadow Exchequer Secretary, the hon. Member for North West Norfolk (James Wild), and the hon. Member for St Albans (Daisy Cooper), for their scrutiny and attention to the measures contained in this short Bill. I am proud that, as the shadow Exchequer Secretary said, we removed three taxes, and I am glad to say that, on a temporary basis at least, one tax is being put down to £1 as a result of the legislative changes that the House is about to vote on. It is a privilege to close this brief debate on behalf of the Government.

Let me turn to each amendment. New clause 2 would require a report to the House of Commons on the approved mileage allowance payments system, including the adequacy of the rate for care workers. The hon. Member for St Albans spoke powerfully about the work done by care workers in her constituency, who she has the honour of representing. I think that all Members will know—from personal experience of family members who have either worked in the sector or been cared for by those who work in the sector—just how valuable care workers’ time, effort and care is.

I am glad that the hon. Lady is now aware that care workers can claim back the tax. They cannot claim back the whole amount—it is not fully equivalent—but they can claim back the tax relief, as it were, on the amount. I want to look at whether we can make that process simpler and easier to use. As the Department does so, I would be happy to provide further updates—if not at the Budget, then beforehand. We have said that the Government’s review of the rates is not over. We came forward with the 10p increase, and we are continuing the review and will update the House further at the Budget. I therefore urge Members to reject this new clause.

New clause 3 would require a report to the House on the impact of haulage costs and consumer prices, including the operating costs for and overall tax burden on goods vehicle operators. As I am sure the shadow Exchequer Secretary and the Liberal Democrat spokesperson will know, the Government have already published a tax impact and information note setting out the expected impact of the measure. The costing for it will be subject to scrutiny by the Office for Budget Responsibility and set out at a future fiscal event. It is therefore the Government’s view that the new clause is unnecessary.

New clause 4 would require the Treasury to review the impact of the EGL rate rise, including on investment, electricity prices and energy security, and to report to Parliament by 31 March 2028. The EGL was carefully designed to avoid disincentivising renewable generation, which means that since its introduction in 2023 it has had no adverse effect on energy security or new investment; in fact, we are having record levels of new investment in renewables under this Government. It is worth noting that new investments made since 2023 are exempt from the EGL and will continue to be so.

The Government have published a tax information and impact note on this measure, too, which sets out clearly that the Government’s view is that this rate rise is not expected to have an impact on electricity prices or investment in renewable generation going forward. The note also explains the rationale for the new EGL, which we have discussed. I will be consistent in reminding the Committee that, of course, the Government keep all taxes under review and monitor and evaluate tax policy changes on an ongoing basis, and that, unless responding to international conflict, in order to be there for households and businesses, tax policy decisions are usually best made by Chancellors at the Budget in the usual way.

--- Later in debate ---

[Daisy Cooper]

We Liberal Democrats support the Bill and the three measures in it. We tabled our three new clauses in Committee, and I was grateful that the Minister gave assurances from the Dispatch Box that he would look at every single opportunity to ensure that care workers are aware of the ways in which they can benefit from these measures. We are happy to see the Bill fast-tracked, but I believe the Minister said that he would look for opportunities to come back and report to this House—if not at the Budget, perhaps before—on how that is going. I am glad that is on the record. I hope that care agencies see that on the record and act on it to inform their staff, but I was pleased to hear the Minister say that. I will try to hold his feet to the fire so that we do everything we can to ensure that care workers are aware that they will benefit from this measure.

Taxation (Energy and Vehicles) Bill

Daisy Cooper Excerpts

2nd reading & Committee of the whole House
Wednesday 1st July 2026 Commons Chamber

[Daisy Cooper (St Albans) (LD)]

We Liberal Democrats support all three measures in the Bill. We recognise that the electricity generator levy is intended to encourage legacy renewable generators to move away from volatile wholesale electricity prices and on to contracts for difference.

As the only party to put in its manifesto a commitment to decoupling gas and electricity, the Liberal Democrats support the Government’s objective. If it succeeds, consumers will benefit from greater protection against future gas price shocks and the volatility that we have seen in recent years. However, if the measure does not achieve that behavioural change, and instead primarily generates additional revenue, I believe that Parliament and the public deserve clarity on how that money will be used. As the Bill progresses through the House, I hope Ministers will say how they intend to report to Parliament the amount of money the levy raises, and how they intend to spend it.

We have consistently argued for an emergency transport package to help Britain keep moving, emergency home insulation schemes, and low-interest loans to support households to adopt energy security measures—something I proposed last autumn that the Government are now consulting on. There are many ways in which the Government could be helping households and businesses with the rising cost of living.

The change to income tax mileage allowance payments is another measure that Liberal Democrats are pleased to support. However, Ministers will be aware that there are many carers who drive their own cars, often hundreds of miles a week, who do not benefit from mileage allowances. Again, I hope that as the Bill progresses through the House, Ministers will say what measures will be taken to ensure that all of our valued and professional care workers can benefit.

The 12-month vehicle excise duty holiday for HGVs is a sensible measure and one that we welcome, but we must also recognise the unprecedented pressures facing the haulage sector. As international instability continues, and global energy markets remain uncertain, we urge Ministers to remain vigilant and responsive to the impact that those pressures are having on households and businesses, as well as industry and haulage.

Oral Answers to Questions

Daisy Cooper Excerpts

Tuesday 23rd June 2026 Commons Chamber

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

It was recently reported that the newly elected hon. Member for Makerfield had pledged that he would cut business rates for pubs, clubs and music venues by 20% if he became Prime Minister. Given that the hon. Member is facing the near certainty of becoming Prime Minister, I ask those on the Front Bench whether the Treasury has started modelling the numbers to deliver on that pledge, and if not, when that work will begin.

[Dan Tomlinson]

I have to correct the Liberal Democrat spokesperson—I do not think that this hon. Member has a near certainty of becoming Prime Minister any time soon. [Laughter.] It is good that my newly elected right hon. Friend the Member for Makerfield (Andy Burnham) has taken inspiration from the decision that we made in January to cut business rates for pubs, bars and live music venues by 15% so that we can back the great British pub and other hospitality venues.

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[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

Today is exactly 10 years since the country voted to leave the EU, and thanks to the Conservatives, the post-Brexit red tape has created 2 billion pieces of extra paperwork for British businesses—enough to stretch around the world 20 times. The hit to growth is the equivalent of the Treasury losing out on £90 billion every single year. Surely by now the Labour Government and the Labour party must recognise that if they want to go for growth and raise revenue, they should drop their red lines on Europe.

[Rachel Reeves]

With all respect, the Liberal Democrats backed that referendum 10 years ago, and they were part of the Government who legislated for it. Unlike the Liberal Democrats, the Labour party actually sticks to its manifesto commitments.

Middle East: Economic Response

Daisy Cooper Excerpts

Thursday 21st May 2026 Commons Chamber

[Madam Deputy Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

I feel as though we are slightly through the looking glass. For six months, we Liberal Democrats have been calling for an emergency temporary VAT cut for hospitality, leisure and attractions, and our pledge was fully funded. For weeks, we have been calling for an emergency transport package, fully funded using the additional revenue from higher VAT rates and the EPL. All that time, we were told repeatedly that it was impossible to do those things and there was no additional money. Somehow, with the prospect of a by-election in Makerfield and the Prime Minister’s political life being on the line, the money has been found.

Let me ask the Chancellor two questions. First, I genuinely welcome the Government’s focus on the cost of food, which is of huge concern to the constituents of Members of all political parties. However, is there any risk that short-term gain might result in long-term pain? In looking at the tariffs, has the Chancellor had any conversations with the food manufacturing industry about whether it can remain competitive? Does removing the tariffs inadvertently risk undermining our food manufacturing sector? If there is a risk, will she look at our plans for a good food Bill and for promoting nature-friendly farming? I ask that question in the spirit of constructive opposition.

Secondly, the Chancellor and her Ministers will know that we are due to have a very hot summer. That means huge demand for outdoor attractions, because children will want to be outside in the hot weather. Indoor attractions, such as soft play centres, will not benefit so much, because there will not be much demand for them in the summer months, but there will be in the winter months. Will the Chancellor look carefully at the differences within the sector? Children are priced out of play when they need to go indoors in the winter months, but not so much in the summer months.

[Rachel Reeves]

I thank the hon. Lady for those questions. I am not sure whether she welcomes the changes around the foreign branch exemption, which is what will pay for the policies announced today by ensuring that companies pay their fair share of tax in the UK. Unless we can say where the money will come from, all that results is higher inflation and interest rates in the future. That is why I have always been clear that everything I will announce will be fully costed and fully funded.

On food, the hon. Lady cannot both say that she welcomes help with the cost of living, and then be a bit uncertain about tariff reductions. We have focused the tariff reductions on food products and agrifoods that we do not produce in significant quantities in the UK. We work very closely with the Department for Business and Trade in identifying those sectors.

On indoor and outdoor summer activities, I have had enough family holidays in the UK to know that there are plenty of days when it rains. I am sure that the leader of the Liberal Democrats, the right hon. Member for Kingston and Surbiton (Ed Davey), will be visiting a soft play centre soon.

Costs for Motorists

Daisy Cooper Excerpts

Thursday 21st May 2026 Commons Chamber

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

Like so many Labour Government announcements, the announcement to extend fuel duty relief later this year is too little, too late. When we look around the world, we see other countries acting now. Other countries are cutting fuel duty now. Other countries are cutting public transport costs now. That is why we Liberal Democrats continue to call on the Government to cut fuel duty and public transport costs now. What message does the Minister think it sends to people that the Government will take action later in the year when people are feeling the pain in their pockets right now?

On farmers, the Government will be aware that the cost of fertiliser is going through the roof; world prices are up 44%. The Minister says that there will be a further cut in duty on red diesel, but what assessment have the Government made of the cumulative impact of the war in Iran on farmers? It is clear to me that the cut in red diesel duty will not touch the sides when the cost of fertiliser is rocketing through the roof.

[Lucy Rigby]

The hon. Member makes a really important point about the cost that farmers are facing, but that is exactly why we are taking steps to cut the duty on red diesel by more than a third to its lowest rate in over 20 years. As I said, that will help not just farmers, but other sectors, too, including in relation to freight. I am afraid that, as so often, we hear suggestions from the Liberal Democrats, “Cut this”, “Cut that”, “Try to bring things down”—[Interruption.]—but they are never funded. We manage the public finances—[Interruption.]

Oral Answers to Questions

Daisy Cooper Excerpts

Tuesday 28th April 2026 Commons Chamber

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

Australia, Italy, India and more have all slashed fuel duty in response to Trump’s idiotic war in Iran. We Liberal Democrats are calling for fuel duty to be cut by 12p per litre here. Last week, the Chancellor claimed that anyone calling for a cut in fuel duty was “economically illiterate”, because it would push up inflation. According to the Office for Budget Responsibility, the current 5p fuel duty cut has led to a 0.2% reduction in the rate of inflation. Does the Chancellor think that the OBR and all these other countries that are helping their citizens are economically illiterate, or does she accept that her Government might be in the wrong and that it is time to act?

[Rachel Reeves]

Last time she stood up in the Chamber, the hon. Lady said that she wanted a 10p cut in fuel duty; now it is a 12p cut. What she has failed to explain is how on earth she is going to pay for any of those policies. As a former Chancellor, the right hon. Member for Godalming and Ash (Sir Jeremy Hunt), has just explained, untargeted support will result in higher inflation, higher interest rates and higher taxes, which would hurt people in St Albans and around the country rather than helping them with the cost of living.

I support what the Liberal Democrats say about opposing the war in Iran—that is our policy—but they appear to be the only people on the planet who think that a war in the middle east is somehow good for the Treasury coffers. I would not be surprised if in their next manifesto they said they would commit themselves to closing the strait of Hormuz for good. It is not good economic policy, and I am afraid that that says a lot about the Liberal Democrats’ policies.

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[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

Business rates bills have been landing on doormats over the last few weeks, and some small businesses in St Albans and beyond tell me that the future looks bleak, with some taking the crushing decision to close their doors. Will the Chancellor please look again at the eye-watering revaluations and release the full 20p discount for small businesses, which the Government legislated to do, to save our high streets?

[The Exchequer Secretary to the Treasury (Dan Tomlinson)]

On business rates, the hon. Member will know that this Government inherited the plans that were set in train for an independent revaluation of properties to take place for the first time since the pandemic. It would not have been the right thing to do to delay that independent revaluation for those businesses who have seen their rates fall since the pandemic, so we went ahead with it, and we then put in £4.3 billion of support to limit the increases in bills that businesses would pay. Of course we keep all taxes under review, but we have for the first time put in a differential within the business rates system so that high street businesses face a lower tax rate—a lower multiplier—than the largest online giants.

Middle East: Economic Update

Daisy Cooper Excerpts

Tuesday 21st April 2026 Commons Chamber

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

I thank the Chancellor for advance sight of her statement.

The Chancellor should have come here today to explain how she was going to use the £20 million extra that the Treasury is pulling in every single day through higher VAT, a higher energy profits levy and other taxes, to tackle the immediate cost of fuel crisis that is facing families and businesses today. The Chancellor is fundamentally wrong when she says that a knee-jerk response would have put household finances at risk through higher inflation and higher interest rates. We need just to look at what other countries are doing. The Government could have used that £20 million to drive down prices—the price of petrol at the pump, the price of train and bus fares, and the price of home-charging electric vehicles. Slashing those prices could have helped the Chancellor to control inflation and higher interest rates. That is what other countries are doing, and what we Liberal Democrats are calling for.

The Liberal Democrats were the only political party to have in our manifesto a commitment to break the link between gas and electricity prices, so we are glad that 18 months on, the Government have finally listened.

In addition to the measures outlined today, may I ask the Chancellor about two specific things? First, has she spoken to any banks about rolling out low-interest loans for householders who want to do the right thing and adopt energy-saving measures, but are struggling with the up-front costs? Secondly, I met the Competition and Markets Authority on Monday. The CMA and Ofgem both agree that there is a case to answer about the broken energy market and why hospitality and small businesses are being blocked. Will the Chancellor join me in writing to Ofgem and asking it finally to investigate, without any further delay, a broken energy market that is blocking hospitality and small businesses from accessing the best deals?

[Rachel Reeves]

I welcome the fact that the hon. Lady and her party opposed the war and did not want the UK to become involved, unlike the Conservatives and Reform. However, I find what she has just set out fundamentally economically illiterate. The idea that a great fiscal policy is to close the strait of Hormuz! Why did we not think of that when we came to office? If we close the strait of Hormuz, all our problems will be over because we can get in all this money—that is what the hon. Lady is suggesting; that we will get some great windfall from a tax. The truth is that the IMF and every other forecaster are clear that tax revenues will be lower, not higher, because of the conflict in the middle east. The money that the hon. Lady wants us to spend simply does not exist. I am afraid she is falling into the failed economic policies of the Conservatives, who delivered untargeted, unfunded support that resulted in higher interest rates, higher inflation and higher taxes. She is suggesting an untargeted approach, but that is what got us into the mess we are in today.

I welcome the fact that the hon. Lady supports us on decoupling, which is the right thing to do with our gas and electricity prices. I regret that she and her party did not support the Planning and Infrastructure Act 2025, which enables us to build the homes and energy infrastructure that we need. On working with banks, the Department for Energy Security and Net Zero is working with every high street lender and energy company to help people who are struggling with their bills.

Middle East: Economic Update

Daisy Cooper Excerpts

Tuesday 24th March 2026 Commons Chamber

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

I thank the Chancellor for advance sight of her statement. Our thoughts are with our brave armed forces at this time.

I agree that the last Government’s failure to invest in energy was a failure to protect our country. Today we face the stark reality that we cannot guarantee our national security, our energy security or our food security. When the Liberal Democrats were in government, we launched the auction for onshore wind and established the Green Investment Bank, helping to drive down costs and quadruple renewable energy. The Conservatives’ decision to scrap the Green Investment Bank has left our energy system more exposed, and should be worn as a badge of shame.

To shore up our energy security and to tackle the energy crisis, we Liberal Democrats have consistently argued for a three-pronged approach: first, to reduce energy demand by incentivising households and businesses to invest in energy efficiency, without the tax penalties built into the business rates system or prohibitive up-front costs; secondly, to fix the broken energy market that is unfairly inflating prices, especially for small businesses on our high streets; and thirdly, to provide targeted support for the most vulnerable and for those with the highest energy needs. I urge the Chancellor to consider our proposals to create an energy security bank that can offer low-interest loans for energy-saving improvements for households and small businesses, to reverse the cuts to home insulation programmes, and to exempt business investment in energy efficiency from business rates calculations.

Although the action from the Competition and Markets Authority is welcome, it is not enough. Small businesses have been blocked from the best energy deals for years—well before Donald Trump started bombing Iran—yet there has still been no CMA investigation into suppliers blocking access to those fair deals. I ask the Chancellor again: will she please instruct the CMA to do that investigation without delay?

On targeted support, families are fearful. Will the Chancellor consider zero-rating VAT on heating oil and liquefied petroleum gas and introducing a price cap mechanism for off-grid fuels? Will she commit to halving energy bills over the next decade by reforming pricing structures? If bills rise to more than £400 a year, as some are warning, will the Chancellor commit to coming back to this House and outlining a broader support package so that many struggling households do not face a crippling hit of that scale?

[Rachel Reeves]

I thank the hon. Lady for her questions. Nick Clegg once said that it would take 10 years to get nuclear power up and running so there was no point in doing it, as it would come on stream only in the 2020s. Imagine if that Deputy Prime Minister had not blocked investment in nuclear energy then—we would have the benefits of it today. The Liberal Democrats had a chance when they were in government, and they did absolutely nothing. The Conservatives opposed onshore wind, which is also helping to bring down bills.

In terms of supporting investment in renewables and energy security, we have created the National Wealth Fund, which is prioritising investment in defence and energy security, including in critical minerals in Cornwall, carbon capture and storage and the roll-out of chargers for electric vehicles. We have also put £14 billion into the warm homes plan to subsidise and support people to make energy improvements in their homes in order to reduce their energy consumption and therefore their bills, alongside doubling the number of people eligible for the warm home discount. We are looking at improvement relief through the business rates consultation to ensure that if people do make improvements, including on energy efficiency, they will not then be whacked with higher business rates.

The hon. Lady said that we should cut VAT on heating oil. When the Liberal Democrats were in government, they increased VAT on everything, so it is a bit rich to say that they want to cut it now. We have asked the Competition and Markets Authority to do a review into heating oil, which I set out today, in addition to the £53 million of support we have put in.

There seems to be a slight contradiction in what the hon. Lady is saying—does she want targeted support or blanket support? I argue that the progressive, universal approach that we are taking is the right one. It means £150 off everyone’s energy bills, but also targeted support for those who need it most. We cannot repeat what happened when Liz Truss was Prime Minister—we are still paying the price for the cheque that was written then with higher interest rates, inflation and taxes than we would otherwise have had.

Oral Answers to Questions

Daisy Cooper Excerpts

Tuesday 10th March 2026 Commons Chamber

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

Small businesses are the backbone of our economy, but the Federation of Small Businesses is warning that they will face a cost cliff edge in April because of the cumulative impact of all the new taxes and responsibilities put on them at the same time. During the course of the Finance Bill, we Liberal Democrats have repeatedly called for an assessment of the cumulative impact of taxes on hospitality and small businesses, including business rates. When the Government bring forward their high streets strategy, will it include an assessment of the cumulative impact of all tax changes—yes or no?

[Dan Tomlinson]

When we bring forward the high streets strategy, it will look in the round at what more we can do on regulation, licensing and the decisions that are made in the Treasury to continue to support small businesses and those on our high streets. That is incredibly important, and we will continue to look at that closely.

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[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

In times of crisis, the UK Government have often had to spend more on energy support for households and small businesses than other comparable countries, because our energy market is so broken. Hospitality and small businesses tell me that some suppliers simply refuse to supply hospitality businesses at all. If the Government are determined to refuse Liberal Democrat calls for an emergency VAT cut, can I please ask them whether, at the very least, they will consider our call to instruct the Competition and Markets Authority to investigate bad practices in the energy market affecting hospitality and small businesses, so that we can drive down bills through greater competition?

[The Parliamentary Secretary to the Treasury (Torsten Bell)]

The hon. Lady is right to talk about the long-term answer here, which is more domestic energy security. That is why we are getting on with building nuclear power—whether it is in Wylfa, Suffolk or Somerset. On her specific question, the Chancellor and Ministers have been very clear with the CMA that, particularly at times such as these, we need to ensure that no companies are taking advantage of customers—whether they are customers filling up their domestic heating oil or hospitality businesses.

Middle East: Economic Update

Daisy Cooper Excerpts

Monday 9th March 2026 Commons Chamber

[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

I am grateful to the Chancellor for advance sight of her statement, but it does not include a single concrete announcement, and in itself will not provide the reassurance that householders and businesses are looking for as they hear reports that energy bills are about to escalate. Last week, the Liberal Democrats asked the Chancellor whether she would consider scrapping the planned 1p increase in fuel duty, due in September. Will she confirm that that option is still on the table and has not been ruled out?

Last autumn, we Liberal Democrats called for a new energy security bank to roll out low-interest loans to households and small and medium-sized enterprises. We welcomed the Government’s warm homes plan in January, but will the Chancellor confirm that it could be extended from five to 10 years and that it will have a greater emphasis on home insulation? Could small businesses’ investment in energy-saving measures be excluded from business rates calculations?

In the long term, we need energy market reform. I urge the Chancellor and her Government to intervene to stop these unpredictable fluctuations in the gas market. We need urgently to develop a plan to delink gas and electricity prices, and move expensive old renewable subsidies from the renewables obligation to the much better and cheaper contracts for difference model.

I am glad that the Chancellor has written to the Competition and Markets Authority about keeping an eye on petrol pump prices, but last autumn I wrote to the Secretary of State for Business and Trade and asked him to instruct the CMA to investigate bad practices in the energy market that affect hospitality businesses and small businesses. The Federation of Small Businesses and UKHospitality have also asked for that investigation but, six months on, it still has not happened. Will the Chancellor please confirm that she will speak to the Secretary of State for Business and Trade?

Finally, on rural homes, we know that off-grid homes rely on oil, and they are already seeing prices go up as panic buying spreads. I am grateful that the Chancellor indicated that there will be a meeting on Wednesday. Will she confirm that an announcement will be forthcoming by the end of this week?

[Rachel Reeves]

The hon. Lady talks about energy security, but she has never once acknowledged her party’s failure when they were in government. In 2010, her then party leader Nick Clegg justified opposing new nuclear energy on the grounds that it would take until 2022 to become operational. Well, 2022 has been and gone, but what is here is another example of Britain paying a high price today for the choices of the Opposition parties.

I turn to the hon. Lady’s specific questions. We announced at the Budget that we will take £150 off bills—that will come in in April and continue until June—by taking the failed energy company obligation levy, over which the last Government presided, off bills. People on heating oil also use electricity in their homes and will benefit from reductions in their energy bills from April. As I said, the Financial Secretary to the Treasury will meet relevant MPs this week.

The hon. Lady walked with her colleagues through the Lobby to oppose the Budget measures, which included freezing fuel duties, so it is a bit rich of her now to say that she wants us to cut fuel duty. On ensuring that homes are properly insulated, at the spending review last year I announced £15 billion for the warm homes plan, which is focused on lower-income families.

The hon. Lady is absolutely right that contracts for difference are crucial in weaning ourselves off imported oil and gas. We are in a better place because of the CfD auctions we have been holding and the energy infrastructure we have been building, and which we can build because of the Planning and Infrastructure Act 2025, which Opposition parties opposed.

Finally, as I said in my statement, the Competition and Markets Authority has an important role in ensuring that markets are functioning properly on heating oil, on petrol forecourts and for small businesses. We will ensure that it fulfils that role so that people are not overcharged for the energy they use.