Oral Answers to Questions
Debate between Rachel Reeves and Jess Brown-Fuller(2 days, 4 hours ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Jess Brown-Fuller (Chichester) (LD)
The Chancellor of the Exchequer (Rachel Reeves)
We are monitoring the situation and preparing for every eventuality. The International Monetary Fund expects the UK to be the fastest growing European G7 economy cumulatively over this year and next. A rapid de-escalation of the conflict remains the best way to protect consumers from rising bills. We continue to act on the cost of living, with £117 on average off energy bills from 1 April, £53 million to help with the cost of heating oil, and freezing both rail fares and prescription charges.
Rachel Reeves
I thank my hon. Friend for his question. Baker Hughes, an important employer in his constituency, is a good example of how this conflict is affecting businesses and families here at home. As he knows, we have stepped in to defend our Gulf allies who have been attacked, unprovoked, by Iran. We are working with our allies in the Gulf, whom I speak to on a very regular basis, to ensure that we are not only defending them now but helping them to rebuild their infrastructure. Here in Britain, both the supercharger and the British industrial competitiveness scheme are helping businesses with the cost of their energy.
Jess Brown-Fuller
In my constituency, the owner of a haulage business—a vital industry that keeps our economy moving—has reported a 40% increase in the cost of diesel. It is at risk of going bust, while companies like BP are reporting record profits. Given that the impact of the conflict will be felt up to eight months after its conclusion, will the Chancellor please commit to cutting fuel duty, to keep my businesses and my residents on the road?
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.
Oral Answers to Questions
Debate between Rachel Reeves and Jess Brown-Fuller(1 year, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Rachel Reeves
As the hon. Lady knows, because of our commitment to the triple lock, the basic state pension and the new state pension will continue to rise. This winter, the new state pension is worth £900 more than it was a year ago, and it is likely to rise by a further £450 next April. Indeed, during the course of this Parliament, because of the triple lock, the new state pension is likely to be worth £1,700 more—much more than the value of the winter fuel payment.
Jess Brown-Fuller (Chichester) (LD)
I am sure that the Treasury was pleased to receive £1.5 billion in a windfall tax from Octopus Energy. Would the Chancellor consider using that money to reinstate the winter fuel allowance for one year until the Treasury has had the opportunity to find a better system of means-testing, so that my vulnerable residents and pensioners in Chichester are not falling off a cliff edge this winter?
Rachel Reeves
I can understand the hon. Member’s concern, but of course, that £1.5 billion was already baked into the forecast—it is not new money to spend on initiatives. As she knows, we inherited a £22 billion black hole in the public finances; we will set out the detail of that at the Budget tomorrow, but because of that, we have had to make very difficult choices. Even in those difficult circumstances, though, we have protected the winter fuel payment for the most vulnerable pensioners who are on pension credit. We have also boosted the uptake of pension credit, so that people get the support they are entitled to.