Middle East: Economic Response

Debate between Marsha De Cordova and Rachel Reeves

Thursday 21st May 2026 Commons Chamber

[Rachel Reeves]

When I became Chancellor, I extended the energy profits levy on gas and oil to 78%. We will be able to bring in money as a result of that. We have also increased the electricity generator levy by 10 percentage points to help to decouple gas and electricity prices. Because of the measures I took in my Budget last year, I was able to take £150 off people’s energy bills. I recognise the impact of the cost of living on families, pensioners and businesses, which is why I have introduced a further range of measures today, particularly targeting and helping families, energy-intensive industries, and those who drive a lot for work.

[Marsha De Cordova (Battersea) (Lab)]

I thank the Chancellor for her statement and welcome the measures she has announced, which will have a huge impact and support many of my constituents and businesses in Battersea. She is very welcome to visit Battersea; we have wonderful hospitality there.

As we live in an increasingly unpredictable global landscape, it is vital that we work with some of our closest allies. That is why I welcome the European partnership Bill announced in the King’s Speech last week. Will the Chancellor continue to explore ways to strengthen our economic relationship with the EU as a means of promoting stability and security, particularly in the light of the current financial pressures as a result of the Iran war?

[Rachel Reeves]

The measures I have set out in my statement will absolutely help the hospitality and entertainment sectors in Battersea, whether zoos, cinemas or restaurants. My hon. Friend is right to point to the economic benefits—reducing inflation, and boosting jobs and growth—of a closer relationship with our nearest neighbours and trading partners in the EU. That is why we are currently negotiating an ambitious agreement to reduce the costs of bringing in agricultural, food and farming products from the EU, and increasing markets for British farmers in the EU. That is alongside a youth mobility scheme, Erasmus, and energy trading and electricity trading across the European Union.