Middle East: Economic Update

Debate between Rachel Reeves and Andrew Snowden

Tuesday 21st April 2026 Commons Chamber

[Rachel Reeves]

Investment in nuclear and renewables can ensure security of supply, and security of price. Investment in fossil fuels cannot secure security of price, because that price is determined by international markets. A third of power is electricity that is not covered by a contract for difference. We are trying to get that on to contracts for difference, so that we can stabilise prices and avoid the spikes that we see because of the volatility in fossil fuel prices that my hon. Friend mentioned. The Energy Secretary and I have already met representatives from the energy sector to discuss this policy and the negotiation of contracts for difference. After the negotiations, and given the incentive to avoid the higher electricity generators levy, we are confident that many businesses will be happy and willing to move, through a negotiated price, on to contracts for difference.

[Mr Andrew Snowden (Fylde) (Con)]

The strangely cheerful outing by Treasury Front-Bench Members today makes them the equivalent of the band playing on the deck of the Titanic, as the Government sink around them after hitting the iceberg that is Peter Mandelson. If the Chancellor thinks that anybody out there genuinely feels that she has made the economy more resilient to economic shocks, then I am sorry to say that she is living in cloud cuckoo land. I have met the families who have less money in their pay packets because of her tax raids. I have met the businesses that are making people redundant, cutting investments or facing closure because of her tax rises. If she wants to help people in the economy, she should cut taxes.

[Rachel Reeves]

Today we have announced an increase in the electricity generators levy to help the hon. Gentleman’s constituents, and all our constituents, to get lower prices for electricity. Instead of talking the country down, he might want to mention the fact that the economy grew by 0.5% in February, unemployment went down today, we have the fastest deficit reduction pace of any country in the G7, and in every single month that I have been Chancellor, wages have risen by more than prices. That is very different from what happened when his party was in charge.

Oral Answers to Questions

Debate between Rachel Reeves and Andrew Snowden

Tuesday 9th September 2025 Commons Chamber

[Rachel Reeves]

This Government back a third runway at Heathrow. We are a country that is open to global trade and investment—we have done three trade deals with countries around the world and have secured £120 billion of inward investment. Heathrow Airport Ltd and others have now put forward a bid to build the third runway, and have been very clear that they will be investing in the infrastructure to make that possible. I welcome investment into Britain, and I hope that parties all across the House will do the same.

[Mr Andrew Snowden (Fylde) (Con)]

If the Chancellor is looking for some quick-win infrastructure projects that will unlock economic growth, I recommend taking a look at a passing loop on the South Fylde line, which would better connect trains to employment and education sites through more reliable services. It would also act as a boost for the tourism industry on the Fylde coast; people across Lancashire—maybe from other great towns such as Chorley—like to visit Lytham St Annes and the Fylde coast, and would be able to do so on half-hourly rail services. Will the Chancellor take a look at that fantastic opportunity to boost economic growth in Lancashire and the Fylde?

[Rachel Reeves]

I have huge respect for the hon. Gentleman, and no one in this House would want to do anything to upset Mr Speaker. I am very happy to look at investment opportunities in the hon. Gentleman’s constituency and right across Lancashire, including just up the coast in Blackpool, where we put in significant investment at the spending review earlier this year to build the housing and infrastructure our country desperately needs.