Commons Chamber

Monday 9th March 2026

(began 3 hours, 52 minutes ago)

Share Debate
Watch Live
Skip to latest contribution
14:34
None Portrait Q1. If he will make an estimate of the potential cost to the public purse of disregarding the War Pension Scheme and Armed Forces Compensation Scheme for the purpose of calculating Pension Credit entitlement. (908142)
-

The The oldest. The oldest. Start The oldest. Start with The oldest. Start with questions The oldest. Start with questions to Secretary of State for Work and Pensions. Josh Babarinde.
14:34
14:34
14:34
14:35
14:36
14:36
14:37
14:37
14:38
14:38
14:39
14:39
14:39
14:40
14:41
14:41
14:42
14:42
14:42
14:43
14:43
14:44
14:45
14:45
14:46
14:46
14:46
14:46
14:47
14:48
14:49
14:49
14:50
14:50
14:51
14:51
14:52
14:53
14:53
14:54
14:55
14:55
14:56
14:57
Pat McFadden Portrait Rt Hon Pat McFadden MP, The Secretary of State for Work and Pensions (Wolverhampton South East, Labour)
-
-
Secretary of State. is that the party opposite presided over a huge post-Covid rise in the number of young people not in number of young people not in education, employment or training. And they did precisely nothing about it. They also provided presided over a huge rise in the number of young people going on to sickness and disability benefits, and did precisely nothing about it. And they have discovered a thirst for change only after they have left office. They have no credibility and no plan on this issue.

And in contrast to that, we are responding to the Youth Guarantee through changes to the apprenticeship system and through giving young people more hope that the government will actually help

**** Possible New Speaker ****

give them a chance in life. John Milne Madam Deputy Speaker. A recent.

**** Possible New Speaker ****

A recent. Report from Adzuna, a large job search agency, shows that youth unemployment at an 11 year high in unemployment at an 11 year high in vacancies plummeting job seekers urgently need the new jobcentre in your pocket digital service. Given your pocket digital service. Given current current timeframes suggest it won't be ready until 2028. Will it won't be ready until 2028. Will the Secretary of State assure us that all options are on the table to accelerate delivery? That includes leveraging the private sector technology so we can support job seekers now rather than years down the line?
14:58
14:58
14:58
14:59
14:59
15:00
15:01
15:01
15:02
15:02
15:03
None Portrait Q9. What recent assessment he has made of trends in the level of child poverty in Bolton North East constituency. (908151)
-

>> Thank you, Madam Deputy Speaker. The Right Honourable Alan Milburn is making progress on his report.
15:03
15:04
15:04
15:05
15:05
15:06
15:07
15:07
15:08
15:08
15:09
15:09
Torsten Bell Portrait Torsten Bell MP, The Parliamentary Under-Secretary of State for Work and Pensions (Swansea West, Labour)
-
-
Mr. >> Well, now that he's got to it, I do thank my hon. Friend for his question and for the shocking news of his age. He's absolutely right of his age. He's absolutely right to highlight both the issues he raised. Pensioner poverty halved under the last Labour government, but it has risen more recently. That is why, as well as increasing the State Pension, it's so important that we've put in place the biggest ever take up campaign for Pension Credit and focussed on the cost of essentials, most importantly energy, where new measures will obviously come into place in just in next few weeks.

But he's also absolutely right to focus not just on poverty, but on isolation. I'm sure all of us on every side of this house, when we're out knocking on doors at the weekend, meet some younger but also some older constituents who are too isolated. They may not be happy to see the particular member who opposite them who comes to knock on their door. But they may be. And the general thing more generally, whatever people think about politicians knocking on their doors, we all have in our constituencies, organisations and charities like Age and Wales, and I'm sure many in his constituency which do important work in tackling, in tackling

**** Possible New Speaker ****

isolation amongst all our communities. Father of the House Sir Edward Leigh. I declare.

**** Possible New Speaker ****

I declare. A similar interest. No no no.
15:10
15:11
15:11
15:12
15:13
15:13
15:13
15:14
15:15
15:15
None Portrait Q15. What assessment he has made of the potential impact of Work Capability Assessment clearance times of over two years on claimants. (908157)
-

Kirsty Blackman. Question 15 please.
15:16
15:16
15:17
15:17
15:18
15:19
15:19
15:20
15:20
15:20
15:21
15:22
15:22
15:23
15:23
15:24
15:24
15:25
15:26
15:27
15:27
15:28
15:28
15:29
15:29
15:30
15:30
15:30
15:31
15:31
15:32
15:32
15:33
15:33
15:34
15:34
15:34
15:35
15:35
15:36
15:36
15:36
15:37
15:37
15:38
15:39
15:39
15:40
15:40
15:41
15:42
Alex Norris Portrait Alex Norris MP, The Minister of State, Home Department (Nottingham North and Kimberley, Labour )
-
-
policy. Thank you, Madam Deputy Speaker. Madam Deputy Speaker, the British public expect and deserve an immigration system with order and control. In November, the Home and control. In November, the Home Secretary announced the most sweeping reforms to tackle illegal migration since the Second World War. And last week, the government War. And last week, the government took concrete steps to implement these necessary changes. I hear very clearly the strong message from the chair, Madam Deputy Speaker, and of course, would never mean any discourtesy to yourself or to your colleagues.

Features of the of the steps taken last week include. That refugee status will be now reviewed every 30 months at a 30 month review. Refugees with a continuing need of protection will have this protection renewed, while those who no longer have a protection need will be expected to return home. Further, we are introducing targeted measures known as a visa break to help protect the integrity of the UK immigration system. As such, from the 26th of March, we will refuse applications for specific visa routes from nationals of Afghanistan, Cameroon, Myanmar and Sudan, where evidence shows a consistently high number and proportion of visa linked asylum claims.

This is the beginning and other nationalities may face similar measures in the future. Due to the number of asylum claims from nationals of Nicaragua and Saint Lucia. We have also introduced visit visa requirements and direct HSE transit visa requirements on these countries to prevent visitor visa misuse. These came into force on the 5th of March. We have tabled further legislative changes to revoke the current legal duty to provide support to asylum seekers, instead restoring this to a power to provide support so that those who can support themselves do so.

And we are also amending existing conditions of support legislation to enable the suspension or discontinuation of asylum support. When an asylum seeker is working illegally. And we have started a consultation on our approach to family returns, exploring reforms to the support available to families with no legal basis to remain in the UK, and the approach used when enforcing the returns of families who have not departed voluntarily. Madam Deputy Speaker, After years of chaos and crisis, it has fallen to this government to fix the broken systems we inherited.

I know this country. I know the protection that people want to provide to those who need it. We've seen that with the Syrian scheme. Afghan resettlement, Hong Kong Bno and homes for Ukraine. But we can only do this when there is confidence that the system has order and control these reforms, restore this order and build the system. The British people deserve.
15:44
Chris Philp Portrait Rt Hon Chris Philp MP (Croydon South, Conservative)
-
-
Shadow Secretary of State. government did not come here voluntarily to announce their policies. And I notice there was no apology. But given the scale of their failure, it is not surprising. Since the election, 67,000 people have entered the UK illegally, a 45% increase compared to the same period before. Many of those 67,000 have since committed serious crimes, including murder and rape. In the last six days alone, 900 illegal immigrants have crossed the English Channel and the government's promises lie in tatters.

The gangs are not smashed. The French are not intercepting boats near the shores, as we were promised last year and last year. The so-called one in, one out deal saw 41,000 illegal immigrants come in across the channel and only 300 go out. So the government is now resorting to bribing illegal immigrants with £40,000 per family to leave. That is more than most working people here earn in a year. British workers should not have to pay record high taxes for this government to give their money away to illegal immigrants.

It is frankly disgraceful. Instead, the government should now agree to our plan to leave the which would enable them to deport all illegal immigrants. The crossings would then quickly stop, and there would be no need to bribe illegal immigrants to leave. Let me turn now to ILR. When we proposed a ten year path, the government voted against it. But I'm delighted they've now done yet another U-turn and adopted our policy. Now, while we don't agree with every detail in their plans, we do agree with the substance.

But I'm sorry to hear some of the Ministers own MPs are apparently unconvinced. So let me help the Minister. Given the government appears to need our votes to pass these ILR changes, we will support them. Will the Minister confirm the ILR changes will be made in primary legislation or via the rules? If they do use primary legislation, that will take some time to pass, by which time the 2021 and 22 arrivals will have ILR? So we would also support him to pass emergency legislation if he would accept.
15:47
Alex Norris Portrait Alex Norris MP, The Minister of State, Home Department (Nottingham North and Kimberley, Labour )
-
-
That offer. Minister. challenge to be lectured on the need for apologies from the architect of Trussonomics that mean that that my that mean that my constituents month on month pay more on their mortgages. But we've seen more of that mathematics from the right hon. Gentleman there because he says that £158,000 that on average we spend on families in hotel accommodation who have no right now to be here because they have finished their way through the asylum system, that that spending that money is better value than spending £40,000 in order for them to return home and to build their lives again.

I'm not surprised he talks about gangs. Well, he will know there have been a record level of interventions, more than 4000. He talks about our work with the with the French, but he'll know too. There's been 40,000 preventions of crossings. He'll know to he mentioned returns. Will 60,000 people have been returned under this government, a 31% increase under his time when he was in the Home Department. So he offers criticism that the only answer that he offers in lieu is just to tear up international agreements, with no sense of what change that would drive.

It would merely set back that returns work and just leave us back to years and years of debate and no action. I won't do that. He mentions ILR. Of course, that wasn't the nature of the announcements last week. That was a consultation that closed a very important one about earned settlement in this country. We'll be having those conversations with Parliament, and those, of course, will be laid in the usual way in the weeks, months ahead. the weeks, months ahead.
15:48
Meg Hillier Portrait Dame Meg Hillier MP (Hackney South and Shoreditch, Labour )
-
-
Meg Hillier. Thank you, Madam Deputy Speaker. I wonder if the Minister could update us on the discussions about people who have got leave, that they arrived in a country pursuing leave for five years to get status in the UK, or for whichever period of their visa, who approaching the end of that period. I have a number of constituents concerned their their visa. I will they'll reach this point in April and they're concerned that they will have to start all over again under a new process.

Could you update the House

**** Possible New Speaker ****

on this issue? Yes. I believe the hon. Member refers to Unsettlement. It has always been to Unsettlement. It has always been the case that the Immigration Rules in force at the point of application, rather than the point of entry to the country, are the ones that are germane with regards ones that are germane with regards to the conditions and individual has to meet. Nevertheless, the hon. Lady will know that we did consult about what transition protections there could be.

That consultation closed last month. There is, you know, an important reality for all colleagues to wrestle with here. But we saw in the last, in the first five years of this decade, unprecedented levels of migration through legal means, the the the open borders experiment by colleagues opposite, which means that 1 in 30 people in this country came in that window of time. That means at the same time, those people will become eligible for social housing, for benefits and whatnot. That, of course, is a significant challenge to the taxpayer and to public services.

But nevertheless, that consultation consultation took place and will be coming back in the usual way. Forster.
15:50
15:51
Alex Norris Portrait Alex Norris MP, The Minister of State, Home Department (Nottingham North and Kimberley, Labour )
-
-
Minister I'm grateful for that question. I am surprised the hon. Gentleman doesn't remember the statement in November on these very issues. I can assure him his colleague on the Liberal Democrat frontbench remembers it very well, and I think thinks about it quite a bit on the 30 months. Let's be clear about how the system will work. What we are saying is we do not want people to come to the country and get that good news of their their claim being accepted for refuge, and then be at home and not take part in British life.

We are saying that if people do do that, then their claims will be assessed every 30 months. Instead, they will be offered the chance to move to a protected work and study route, which means that if they are taking part in work, taking part in study, learning the language, not committing crimes, then they're outwith of that. So I don't recognise the points on how many decisions would have to be made or the spend that isn't accurate. But what I also would say, because he talks about quicker decisions, well, last year was the best year since records began in terms of decision making for initial decisions.

So we are operating that system effectively, but nevertheless there are significant demand issues, which means that applications across the EU are down significantly and in the UK are up significantly. And until and unless you address those issues, any process changes simply will be overwhelmed.
15:52
15:53
15:53
15:54
15:55
15:55
15:56
15:56
15:57
15:57
15:58
15:59
15:59
16:00
16:00
16:01
16:02
16:03
16:03
16:04
16:04
16:05
16:06
16:07
16:08
16:08
16:09
16:09
16:09
16:10
16:10
16:11
16:11
16:12
16:12
16:13
16:13
16:13
16:13
16:14
Alex Norris Portrait Alex Norris MP, The Minister of State, Home Department (Nottingham North and Kimberley, Labour )
-
-
Minister I gently say to the hon. Lady that we won't be asking those who come to the country have those who come to the country have a protection need, who enter into work and study, who learn the language, who don't commit crimes. We won't be asking them to justify their protection need. I think that that's the right balance between the taxpayer and the individual. I don't accept and I don't recognise those figures in terms of cost. This is about recognising that we in this country support a significantly bigger supported population than we have traditionally.

That number needs to reduce, we have to break that attractiveness. And that's why

**** Possible New Speaker ****

we've proposed the reforms we have. Neil Duncan-Jordan. Thank you. Mr. Speaker. The Home. Secretary last week.

**** Possible New Speaker ****

last week. policy. Needed to be. Based on the idea of fairness.

**** Possible New Speaker ****

Based on the idea of fairness. But is it fair to change the rules on indefinite leave to remain for those who are already making a those who are already making a contribution to our society and came here under the old rules? Will the Minister give those individuals the Minister give those individuals some assurance that they will get some transitional protection?

**** Possible New Speaker ****

I'm grateful for that question. On the point of fairness, applying the system as it has always been applied. And as I say, that has always been at the point of application, not the point of entry. So I don't accept that that in So I don't accept that that in itself is a lack of fairness. Nevertheless, I've heard the point that he and colleagues have made, and that's why we have the

**** Possible New Speaker ****

and that's why we have the consultation in the way that we did. So Julian Smith. I've often. Had occasions.

**** Possible New Speaker ****

Had occasions. When somebody has leaked in advance the contents or part of the contents of a statement they're going to make to the House of Commons. But this is the first time Commons. But this is the first time that I've had a total revelation in the press of something they had no intention of making a statement intention of making a statement about the House of Commons. Why is that? And what will these measures do to deter people from breaking do to deter people from breaking into this country illegally? And then it being impossible to deport them?
16:16
16:16
16:16
16:17
16:17
16:18
16:18
16:19
16:19
16:19
16:20
16:20
16:21
16:21
16:22
16:22
16:23
16:23
16:23
16:24
16:25
16:25
16:25
16:26
16:26
16:26
16:27
16:27
16:28
16:28
16:28
16:28
16:29
16:29
16:29
16:29
16:30
16:30
16:30
16:31
16:31
16:31
16:32
16:32
16:33
16:33
16:33
16:34
None Portrait Ministerial statement: Middle East — Economic Update
-

the Exchequer,
16:34
Rachel Reeves Portrait Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)
-
-
In the Middle East. Let me begin by paying tribute to our armed forces, and by expressing my concern and and by expressing my concern and sympathy for the British citizens whose lives have been disrupted by whose lives have been disrupted by the conflict so far. I understand the anxiety felt by families and businesses during these incredibly uncertain times, and this conflict affects us all, and we must respond affects us all, and we must respond to it. As I have demonstrated time and time again.

I will take the necessary decisions to help families with the cost of living and to protect the public finances. I am clear eyed about my response to the current situation. My economic approach will both be responsive to a changing world and responsible in the national interest. The economic impact of the situation in the Middle East will depend, of course, on its severity and its duration. The movements that we have already seen are likely to put upward pressure on inflation in the coming months.

But I also want to confirm to the House that our financial markets are functioning, and I'm in regular touch with the governor of the Bank of England. This afternoon, I spoke with G7 finance Ministers, setting out my priorities for the international cooperation needed first calling for immediate de-escalation and a return to the diplomatic process. Second, we must guarantee the security of vessels passing through the Strait of Hormuz. Third, I stand ready to support a coordinated release of collective International Energy Agency oil reserves.

And fourth, the UK will play its part as the global hub of maritime insurance. And I am meeting with the chair of Lloyd's of London later today, where we will discuss how best to support the continued passage of maritime trade. I want to ensure the country that the fundamentals of Britain's economy are strong. Every step that I have taken since the election has built our national resilience, stability in the public finances, investment in infrastructure in both defence and energy security, and reform to our economy.

Last week, I updated the House about our progress in delivering that plan. We have cut inflation so that it is now at 3% a lower base than at the outset of the Russia Ukraine conflict. I have prioritised economic growth to drive up living standards. And I have stabilised the public finances. We have already reduced the deficit by £20 billion since last year, from 5.2% to 4.3% of GDP. We are due to reduce borrowing more over the rest of this parliament, and by more than any other G7 economy.

And I have increased our financial buffers, confirmed last week by the office for Budget Responsibility. I know that families and businesses will be concerned about the impact of this conflict on them. And so I want to set out the action we have already taken and will take to protect them. I am prioritising energy security, investing in clean, home grown energy. Our contracts for difference are already protecting consumers, ensuring that generators of low carbon energy pay money back into the system when the wholesale prices are high.

Shielding bill payers from fossil fuel price shocks. I can confirm to the House that in the coming days, we will publish the government's response to the Finkelstein Review of Nuclear regulation to build nuclear power more quickly. For our energy system is now more secure than it was at the outset of the Russia-Ukraine conflict in 2025. The UK imported 17% less gas than we did in 2021, while gas generation is estimated to have set the wholesale price of electricity in Britain around 90% of the time in the early 2020s.

This has now fallen by around a third. What this means is that we are less reliant on and less exposed to volatile international energy prices than we were at the outset of the Russia-Ukraine conflict. And that is welcome. I recognise the role that North Sea oil and gas will play in our economy for years to come. Last week, I met with North Sea industry leaders to discuss their role in jobs, investment and growth, and in energy supply. The energy profits levy currently remains in place and the electricity generator levy will also be activated if prices remain at high levels.

I have set out the details of our successor regime to the Energy Profits Levy, the oil and gas price mechanism, balancing providing certainty to business with fairly taxing windfall profits from energy companies. I have also taken direct action on energy bills. Our supercharged discount on business electricity is increasing next month, cutting costs for around 500 of the most energy intensive businesses by an additional £420 million per year. We are supporting the lowest income families by investing £15 billion in our Warm Homes plan, to improve the energy efficiency of people's homes and reduce their bills.

And through the Warm Homes discount, taking £150 off bills for 6 million of the lowest income households. That is a doubling of the number of people who will receive the warm home discount, compared with those plans that the previous government had. That is, in addition to the £117 price drop in the price cap that Ofgem have confirmed from next month. Thanks to the wider action on bills that I took in the Budget, I want to be clear to families at home that despite the movements we have seen in energy prices in the last few days, the price cap for domestic bills for April will not change, giving families immediate certainty on their bills until at least the end of June.

However, I recognise that households who use heating oil face unique challenges and so I have asked the Financial Secretary to the Treasury to lead discussions with officials and with rural and Northern Irish MPs to explore further action that we can take. And those meetings will happen on Wednesday. The current conflict only increases the importance of the action I took at the Budget to reduce energy bills. A rapid de-escalation in the Middle East remains the best way to protect us from rising energy bills.

But as the situation continues to unfold, my priorities will continue to be helping families with the cost of living and protecting the public finances. I am also taking action to ensure that people pay the lowest possible price at the pump. In November, I extended the five MP per litre cut in fuel duty for a further five months and ensured that the fuel duty that fuel duty will not increase in line with inflation this year. Petrol is more than 80 per litre cheaper today than it would have been under the plans that we inherited at the election, and that discount increases to 11 per litre next month.

Once that extension takes effect. For you, the new cheap fuel finder that I confirmed at the Budget is currently being delivered, helping consumers find the cheapest price for their fuel. Almost 90% of petrol retailers have already registered for this, and last week I instructed my officials to accelerate the integration of the cheaper fuel finder with Map applications. This week I am meeting with petrol forecourt operators and I will not hesitate to call out retailers who fail to provide data to the fuel finder.

I am clear that the best way to keep prices at the pump low is rapid de-escalation, and I will continue to monitor prices as the situation develops. I have also asked the Competition and Markets Authority to be vigilant across prices, including essentials like road fuel and heating oil. Let me be absolutely clear. I will not tolerate any company exploiting the current crisis to make excess profits at consumers expense. I am proud to be the Chancellor that is delivering the biggest uplift in defence spending since the end of the Cold War, and I am committed to giving our military the resources that they need.

That is why I can confirm today that I approved access for the Ministry of Defence to the Special Reserve to deploy additional capabilities in the Middle East, meaning that no net additional costs of these operations will be funded by the MoD, but instead will be funded by the Treasury. Mr. speaker, Madam Deputy Speaker, we do not yet know how long the conflict will last or what further action will be required, but it is my duty to be responsive in an uncertain world and responsible in the national interest to protect the public finances and help families with the cost of living.

That is what the Prime Minister is doing. That is what I will continue to do. And I commend this statement to the House.
16:44
Mel Stride Portrait Rt Hon Sir Mel Stride MP (Central Devon, Conservative)
-
-
Shadow Chancellor Mel Stride you. >> Shadow Chancellor Mel Stride you. >> Thank you, Madam Deputy Speaker. And can I thank the Chancellor for And can I thank the Chancellor for advanced sight of her statement and add our firm support for our armed add our firm support for our armed forces? Madam Deputy Speaker, as the Chancellor has made clear, these are very serious and concerning times. And the developments in the Middle East are already having profound consequences for our economy.

Oil prices have surged above $100 a barrel for the first time since the 2022 energy crisis. That alone is enough to have huge knock on effects for households and businesses. Families filling up their car will already have noticed petrol prices increasing. Fixed price energy tariffs have either been increased or pulled from the market, so we are already seeing British households worse off as a result of this conflict. I am grateful to the Chancellor for updating the House on the meetings with other G7 finance Ministers, and I welcome her commitment to support action to ease pressure on global supply by using strategic oil reserves.

That, however, will only go so far, as the Chancellor said the longer this conflict continues, the more likely it is that we will see a sustained period of higher prices. Of course, that, in turn, will also have implications for interest rates and for our cost of borrowing. The longer this lasts, the more likely it is that higher inflationary expectations become anchored. If that happens, monetary policy will need to adjust accordingly, which may mean higher mortgages for homeowners who have only just begun to see some relief.

And of course, gilt markets have already been responding to these events, which could mean that forecasts we were given just last week from the OBR end up looking very, very different. We must continue to monitor developments closely. But, Madam Deputy Speaker, where are we on this side of the House? Clearly differ with the right hon. Lady is in her approach to the economy. In the run up to this crisis, her gross mismanagement has left us far more vulnerable than would otherwise have been the case.

Inflation, to which she refers, was bang on target when we left office. But thanks to the right hon. Lady's choices, it rose back up to almost 4% last year, the highest in the G7, and inflation remains elevated. That is far from ideal, given the threat of a significant further spike in energy prices. And, of course, extraordinarily, the Chancellor has just now reconfirmed that the government will press ahead with a rise in fuel duty later this year, and borrowing is running higher than was forecast when the government took office.

We are spending well over 100 billion a year on debt interest alone. That leaves us far more vulnerable to rising borrowing costs. And the government, of course, is continuing to impose ruinously high taxes on our oil and gas sector and choosing to rely on imports instead of maximising our own domestic energy supply. That is proving to be an incredibly short sighted approach. But as the right hon. Lady has just told us, there will be no change in direction. That is the wrong choice.

And more broadly, of course. Business confidence has hit record lows and unemployment has risen back to pandemic levels. So our economy is weaker as a direct result of this. Chancellor. Now, last week, Madam Deputy Speaker, at the Spring Statement, the right hon. Lady had an opportunity to change course, but instead we got no action at all, just breathtaking self-congratulation and denial. Yes, she had a vital opportunity to come to this House with a plan to get the economy growing.

But she did not do that, not least because this week government have caved in to their own backbenchers who prefer higher welfare spending over fixing our economy. Yeah. So today, let me reiterate our offer to support the government, if even at this late stage, and particularly given the gravity of the current global outlook, they do the right thing, show some backbone and come forward with a proper plan to cut welfare spending and strengthen our economy so we can properly support hard working families through this difficult time.

This is the very least that the British people deserve. Finally, Mr. Speaker, could I ask the right hon. Lady, will she urgently reconsider her decision to implement the first increase in fuel duty in 15 years? Likewise, to urgently reconsider her decision to continue with the crippling taxes being imposed on North Sea oil and gas producers. On the Fingleton review on nuclear, can she clarify if the government is accepting all those recommendations as Ministers previously committed to do? Can she give further details on what additional economic action is under consideration internationally if the conflict continues? What measures is the government considering to support households in the event of a sustained period of higher prices? And what action is being considered as part of the Financial Secretary's work to support those reliant on heating oil? Are the government tracking the Iranian regime's illegal funding sources to ensure UK financial systems are not facilitating funds that are being used to support repression.

And can she confirm that there is sufficient resource available in the Special reserve so that our brave servicemen and women have the support they deserve?
16:50
Rachel Reeves Portrait Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)
-
-
Chancellor of the Exchequer. >> Thank you, Madam Deputy Speaker, and I thank the right hon. Member for his questions. The government believes that the best way that we believes that the best way that we can protect families and businesses from this conflict is through de-escalation. And we heard nothing in the Shadow Chancellor's response about what the opposition's view is on de-escalation. We believe that it is important that we get back to the negotiating table and do not escalate this conflict.

I am not that sure that that is the view of the opposition party, but we also know that commitment to greater energy security can help guard against shocks. And after inaction and delay from the Conservatives when they were in government for 14 years, this Labour government is committed to investing and building new nuclear. And that is why we are backing Sizewell C and also small modular reactors, both funded at the Spending review, neither funded by the previous government, because this government is backing Britain's energy security.

This Labour government is backing the industry of the future, such as carbon capture and storage, funded at the Spending Review, not funded by the party opposite, because we back Britain's energy security and through the National Wealth Fund, we are investing in floating offshore wind and in our docks, funded in the spending review, not funded by the party opposite because we backed Britain's energy security. In 14 years, the Tories did nothing, so they failed. When we needed new nuclear, they stood by and allowed the loss of gas storage facilities at rough.

They failed to fix the broken planning system to enable us to build renewables, and they had an effective moratorium on onshore wind, which is the cheapest form of energy. We are taking a different approach in the interest of our economy and energy security. On energy bills, I would urge the right hon. Gentleman not to scaremonger the £150 cut to energy bills that I announced in the Budget will continue, as confirmed by Ofgem. We removed the failed Eco scheme and we removed a number of levies off of bills on heating oil.

Those conversations will happen this week and we are working closely with MPs, with colleagues in Northern Ireland to make sure that things are working well. But the Minister at DESNZ met with the heating oil sector on Friday and spoke this morning to the Competition and Markets Authority. There is not currently a problem with supply, but where members have individual issues around supply, they should make sure they get in contact with DESNZ on fuel duty. Fuel duty would have risen by £0.08 compared to if I had used the plans that I inherited.

And we've had two budgets, both of which all of the parties opposite voted against, which extended that freeze in fuel duty. So it's a little bit rich now to hear the opposition saying that they want to reduce fuel duty when they vote against budgets that froze it. And on the energy profits levy. I think the honourable the right hon. Gentleman has a short memory because, of course, he was in the Cabinet that introduced the energy profits levy, and they introduced it for a reason because of the windfall profits that were being made by the energy companies and the need to help consumers with bills, which is exactly what we have done.

On the the public finances, again, I'm not sure if the right hon. Gentleman listened either to my statement last week or my statement today. The deficit has reduced from 5.3% to 4.2% of GDP. It's the first time in six years that the Budget deficit has been less than 5% of GDP. And in fact, in the 14 years that the Conservatives were in office, borrowing was higher than the G7 average. It is now lower than the G7 average, and it is coming down in every year of this parliament and on inflation.

I'm not going to take any lessons from the party that took inflation to more than 11%. To policy supported by the party opposite and on welfare. I've got to say, for the former work and pensions secretary, to say that we should be spending less on welfare, when it would have been nice if it had done something about it when he was in charge. We are reforming the welfare system that they broke and on Fingleton, we commissioned the Fingleton Review because we are determined to build a nuclear power.

Unlike the party opposite on oil reserves, we have 90 days worth of reserves of oil imports and as confirmed by the G7 today, we will be making further announcements of that on gas reserves. It was the party opposite that closed the storage facilities at RAF and National Gas have no National gas have confirmed today that our gas reserves are at a comparable level to last year and the year before that, and that the numbers being reported are utterly misleading because gas comes from a number of sources.

It comes from the interconnectors, it comes from liquid natural gas, and it comes from our storage facilities. So again, I would really rather that the party opposite didn't scaremonger when people want certainty on money laundering. Of course, we have the very strict rules around money laundering and on the Special Reserve for defence. Of course, we will make sure that the Ministry of Defence has all the money it needs for providing the support for our armed forces.
16:57
16:57
16:57
Daisy Cooper Portrait Daisy Cooper MP (St Albans, Liberal Democrat)
-
-
does not include a single concrete announcement and in itself won't provide the reassurance that households and small businesses are looking for as they hear reports of energy bills about to escalate. Last week, the Liberal Democrats asked the Chancellor whether she would consider scrapping the planned increase in fuel duty due in September. Could the Chancellor confirm whether that option is still on the table, and that it has not been ruled out? Last autumn, we Liberal Democrats called for a new energy security bank to roll out low interest loans to households and SMEs.

We welcomed the government's Warm Homes plan in January. But can the Chancellor confirm that it could be extended from 5 to 10 years, that it will have a greater emphasis on home insulation? And for small businesses, could their investment in energy saving measures be excluded from business rates calculations? Madam Deputy Speaker, in the long term, we need energy market reform. Can I urge the Chancellor and her government to intervene to stop these unpredictable fluctuations in the gas market? We need to urgently develop a plan to delink gas and electricity prices and move expensive old renewable subsidies from the Renewables Obligation to the much better and cheaper contracts for different model.

I'm glad that the Chancellor has written to the CMA about keeping an eye on petrol pumps, but last autumn I wrote to the Secretary of State for Business and Trade and asked him to instruct the CMA to investigate bad practices in the energy market, affecting hospitality businesses and small businesses as well. The Federation of Small Businesses and UK hospitality have also asked for this investigation. Six months on, it still has not happened. Can the Chancellor please confirm that she will speak to the Secretary of State for Business and Development? And finally, Madam Deputy Speaker on rural homes? We know that off grid homes rely on oil.

They are seeing prices going up already as panic buying spreads. I am grateful that the Chancellor has indicated there will be a meeting on Wednesday. Could the Chancellor also confirm that there will be an announcement forthcoming by the end

**** Possible New Speaker ****

of this week? Thank you. Chancellor.

**** Possible New Speaker ****

Chancellor. Thank you, Madam Deputy Speaker. The hon. Lady talks about energy security, but she has never once acknowledged her party's failure. When they were in government in 2010, her party's leader, Nick 2010, her party's leader, Nick Clegg, justified opposing new nuclear energy on the grounds that
17:00
Rachel Reeves Portrait Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)
-
-
nuclear energy on the grounds that it would take until 2022 to become operational. Well, 2022 has been and gone, but what is here is another example of Britain paying the high price today for the choices of the parties opposite. On the specific questions that the hon. Lady asks on energy bills, we announced at the Budget £150 off energy bills. That comes in in April and it continues until until June. By taking the failed eco levy that the last government presided on over, off of bills and on heating oil.

People on heating oil also use electricity in their homes and also benefit from reductions in their energy bill from April. But as I said, the Financial Secretary to the Treasury will be meeting with the relevant MPs this week on fuel duty. The hon. Lady walked with her colleagues again through the lobbies to oppose the Budget measures, which included freezing those those fuel duties. So there is a little bit richer for now to say that she wants us to cut fuel duty on ensuring that homes are properly insulated.

At the Spending review last year, I announced £15 billion for the Warm Homes plan, focussed on lower income families on contracts for difference. The hon. Lady is absolutely right that the contracts for difference are absolutely crucial in weaning ourselves off imported oil and gas, and we are in a better place because of the auctions and the CFDs that we have been doing and the energy infrastructure which we have been building and can build because of the Planning Infrastructure Act, which the parties opposite oppose.

And finally, on the Competition and Markets Authority, as I said in my statement, they have got an important role in ensuring that markets are functioning properly on heating oil, on on petrol forecourts and for small businesses, and we will make sure that they fulfil that role in making sure that people are not overcharged for the energy that they use.
17:02
17:03
17:03
17:04
17:05
17:06
17:06
17:07
17:07
17:08
17:08
17:09
17:09
17:10
17:10
17:11
17:12
17:13
17:14
17:14
17:15
17:15
17:16
17:17
17:17
17:18
17:18
17:19
17:19
17:20
17:21
17:21
17:22
17:23
17:23
17:24
17:24
17:25
17:25
17:25
17:26
17:27
17:27
17:28
17:28
17:29
17:30
17:31
17:31
17:32
17:32
17:33
17:34
17:34
17:35
17:35
17:36
17:36
17:37
17:38
17:38
17:38
17:39
17:40
17:40
17:41
17:41
17:42
17:42
17:42
17:43
17:43
17:44
17:44
17:45
17:46
17:46
John Healey Portrait Rt Hon John Healey MP, The Secretary of State for Defence (Rawmarsh and Conisbrough, Labour)
-
-
and I trust the House will understand. I want to start by praising our armed forces, who are praising our armed forces, who are working 24 over seven to protect British lives and British interests British lives and British interests in the region from our 400 strong air defence teams in Cyprus, who I visited last week to our counter-drone specialists in Iraq, our fast jet pilots in Qatar, our command specialists in the Regional Defence Coordination Centres, and everyone working on this crisis abroad and at home.

Iran threatens us all, but it's our forces who feel this most acutely. So I'm sure the whole House will join me in thanking them for their outstanding dedication and for their professionalism, for protecting British lives, for keeping us safe. We want to say to them, you are the best of Britain in action. Yeah. Madam Deputy Speaker, the UK's government approach throughout the current developments in the Middle East is founded on three principles. First, defensive taking the necessary action to strengthen our collective defence.

So we took steps from January, weeks before this current war with Iran began, to pre-position Typhoons F-35s, Counter-drone teams, radars and defence in the region, as well as the additional military capability we've seen since last Saturday when the Iranian retaliatory retaliation attacks started. Second, coordination with allies. We do not work alone, so we're leading and coordinating our response with NATO allies and other partners, including the US, e five nations and the Gulf states, and I'm in daily contact with my counterparts, just as the Chief of Defence Staff is a two and third.

Madam Deputy Speaker, our third principle is legal. We must have a legal basis for our decisions that allows Ministers to make sound choices. It allows our military to operate with the fullest confidence, and our UK action is grounded in these principles to protect British people, protect British bases, to protect British allies. No. Madam Deputy Speaker, in the last week we've seen Iran lashing out with dangerous, indiscriminate and reckless strikes. In the first day alone, they take ten countries with military and civilian targets attacked, including hotels in Dubai and Bahrain and the Kuwaiti National Airport.

British troops stationed at a US base in Bahrain were within a few hundred yards of an Iranian strike, and a small drone hit our base in Cyprus, coming from Lebanon or Iraq. And Iraq has now fired over 500 ballistic and cruise missiles and over 2000 drones. Thank you to the hon. Gentleman. Iran has now fired over 500 ballistic and cruise missiles and over 2000 drones. I'm grateful to him for paying attention to my statement quite so closely.

And even after the Iranian president's apology and promise to the Gulf states over the weekend, Iran still then struck multiple countries with drones and missiles, including Bahrain, where 32 civilians were injured in one attack and a desalination plant was hit in another. We totally condemn these attacks. They are putting hundreds of thousands of people at risk, including British nationals and members of our armed forces. But Madam Deputy Speaker, while Iran's current indiscriminate strikes began last Saturday, this Iranian regime has for decades been a source of evil, exporting violence across the Middle East and beyond, it supplied nearly 60,000 Shi'ite drones to Putin for Russia's illegal invasion of Ukraine.

Here in the UK, they conduct aggressive cyber attacks against us and have plotted assassination on Britain's streets. The Iranian regime is a destructive force which has slaughtered protesters in its own streets and inflicts terrible suffering, especially against its own people. We want to see Iran stop their strikes, give up their nuclear ambitions and restart the negotiations. And as defence Secretary, my number one priority is protecting British people, military and civilian alike. Since January, we've moved significant military assets into the region ahead of those first US Israeli strikes.

And those preparations made a real difference. It meant we've conducted defensive military operations from day one, our F-35s destroying Iranian drones over Jordan, our Typhoons shooting down targets heading to Qatar, our Counter-drone units defeating further attacks against coalition bases in Iraq. We acted early to protect British people and British interests, and to support our allies. And as the uranium as the Iranian response became clear from last weekend, we adapted our actions to the changing circumstances, driven at all times by military advice.

So that's why we agreed a new US request for the use of British bases at RAF
Feed Live - Click to view video
Return to start of debate - Return to top of page