Middle East: Economic Update

Luke Murphy Excerpts

Monday 9th March 2026 Commons Chamber

[Rachel Reeves]

I have huge respect for the hon. Gentleman, who is on the Treasury Committee, but his party has opposed every increase in taxes that we have brought in to better fund our public services, including higher defence spending. Like me, he will be looking at what is happening in the financial markets. I am not convinced that this is the time to unleash more borrowing on the markets. That is what Liz Truss tried, and look where it got us.

[Luke Murphy (Basingstoke) (Lab)]

I welcome the Chancellor’s statement, particularly the focus on energy security and our plan for home-grown clean energy. It has been astonishing since the election to hear that the Conservatives’ lesson from the Ukraine crisis was that we needed to be more dependent on international fossil fuels, after it cost us £78 billion, as the former Chancellor, the right hon. Member for Godalming and Ash (Sir Jeremy Hunt), just said. The Chancellor mentioned the electricity generator levy. Will she tell the House how and when that would be activated?

[Rachel Reeves]

The energy profits levy is still in place, and the higher prices go, the more windfall tax is paid. There is also the electricity generator levy, whereby if electricity prices go up because they are, in some cases, outside of contracts for difference and linked to gas prices, we will recoup money there. That is obviously important because if the situation goes badly, we will need to be able to better support consumers. That is why the EPL and the EGL were brought in in the first place, and why they are important parts of the architecture we have.