Middle East: Economic Update

Lord Hannay of Chiswick Excerpts

Thursday 26th March 2026 Lords Chamber

[Lord Livermore (Lab)]

I am grateful to my noble friend for her question on energy security. As she rightly says, energy security for this country is about making the best use of all the resources at our disposal. It is why we are investing more in nuclear, as the noble Baroness, Lady Neville-Rolfe, said at the outset: we are investing in the construction at Sizewell C and have agreed an extension to Sizewell B, and we are due to sign the contracts on the UK’s first small modular reactor in Anglesey in partnership with Rolls-Royce SMR. It is why we must, as several noble Lords have said already, make the most of our oil and gas reserves—we will ensure that North Sea oil and gas plays an important role in our economy for years to come—and why we are meeting with industry leaders to discuss their role in jobs, investment, growth and energy supply. It is, of course, why—again, as several noble Lords have said—we must make the most of our transition towards renewables and why we should invest heavily in those, as we are doing. We are taking action, as my noble friend says, to streamline grid connections, and that work goes on. We are undertaking a series of very important initiatives in that respect. On zonal pricing, as I understand it, the Department for Energy Security and Net Zero has said that that is not the direction that it intends to go in.

[Lord Hannay of Chiswick (CB)]

My Lords, will the Minister tell us whether the Treasury has made any estimates of how much oil, in value, Iran needs to export before it drops below a way of maintaining any form of international economic viability? Has the Treasury estimated how Iran will cover its shortfall in foodstuffs and such materials that are, and have always been, needed by Iran beyond those that it grows itself?

[Lord Livermore (Lab)]

Those are both very interesting questions. I cannot say that I am aware of estimates on either of those—they certainly have not crossed my desk—but I am more than happy to look into them for the noble Lord. If I find anything, I shall write to him.