Oral Answers to Questions

Debate between Laura Kyrke-Smith and Rachel Reeves

Tuesday 28th April 2026 Commons Chamber

[Rachel Reeves]

Fuel duty was never lower at any point under the previous Conservative Government or, indeed, the Conservative-Liberal Democrat Government. We are keeping under review what happens from September, but it is important to note that in the first three months of this year, revenues from fuel duty were no higher than they were just a year ago.

With regard to the profits of energy companies, that is exactly why we extended the energy profits levy: to ensure that windfall profits could be taxed appropriately. BP and other oil and gas companies play a really important part in our energy mix, and our important British companies are representing our country in the US this week, but it is important that windfall profits are properly taxed, whether that is through the electricity generator levy or the energy profits levy.

[Laura Kyrke-Smith (Aylesbury) (Lab)]

I am grateful to the Chancellor for the work she is doing to protect us from the economic impacts of this war. One of my local farmers has been in touch about the impact on red diesel prices, which are up by around 70%, and fertiliser prices, and shared his nervousness about the affordability of going ahead and planting next year’s crops. Can the Chancellor outline what more she can do to protect our farmers, our food security and our food prices in light of these global challenges?

[Rachel Reeves]

When we froze fuel duty and extended that freeze, that also impacted red diesel. As we keep under review what happens to fuel duty, we will do the same for red diesel. I think there are two crucial issues. The first is protecting supply, which is why de-escalating this conflict—not ramping it up, as the Tories and Reform would do—is so important, so that we can reopen the strait of Hormuz. The second is prices and costs. That is why we have introduced the British industrial competitiveness scheme to help businesses with energy costs and the supercharger. BICS comes in from this year, and the supercharger is extended from this year, to help businesses impacted by this conflict.