Middle East: Economic Update

Simon Hoare Excerpts

Tuesday 24th March 2026 Commons Chamber

[Simon Hoare (North Dorset) (Con)]

The £474,000 awarded to Dorset council last week as part of the Chancellor’s announcement is welcome, but I must tell her that it really will not touch the sides; more will need to be done to support rural communities. Unwillingly and unwittingly, the Government will be profiteering through a massive hike in VAT and duty take. May I urge the Chancellor to ringfence, either in whole or in great part, the excess receipts that she will be receiving—this would not add to Government borrowing—to support rural communities across the country as they face this cost of living crisis?

[Rachel Reeves]

I thank the hon. Gentleman for what he said about heating oil. As well as the direct support for his local authority and many others, the CMA’s work is crucial to stop businesses exploiting the crisis to increase their profits. As I said in response to my hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders), the CMA will report on that shortly. On ringfencing certain tax revenues, it is clear that a prolonged conflict will reduce other tax revenues and push up borrowing costs, so it is not possible to ringfence a particular tax for a particular use, because other tax revenues will be coming down. But the whole reason for the energy profits levy and the electricity generator levy is to have some stabilisation in the system to bring in money to support the Government and our constituents when that is most needed. Of course, we will be using it to do that.