Middle East: Economic Update

Debate between Lord Hannay of Chiswick and Lord Livermore

Thursday 26th March 2026 Lords Chamber

[Lord Livermore (Lab)]

I am grateful to my noble friend for her question on energy security. As she rightly says, energy security for this country is about making the best use of all the resources at our disposal. It is why we are investing more in nuclear, as the noble Baroness, Lady Neville-Rolfe, said at the outset: we are investing in the construction at Sizewell C and have agreed an extension to Sizewell B, and we are due to sign the contracts on the UK’s first small modular reactor in Anglesey in partnership with Rolls-Royce SMR. It is why we must, as several noble Lords have said already, make the most of our oil and gas reserves—we will ensure that North Sea oil and gas plays an important role in our economy for years to come—and why we are meeting with industry leaders to discuss their role in jobs, investment, growth and energy supply. It is, of course, why—again, as several noble Lords have said—we must make the most of our transition towards renewables and why we should invest heavily in those, as we are doing. We are taking action, as my noble friend says, to streamline grid connections, and that work goes on. We are undertaking a series of very important initiatives in that respect. On zonal pricing, as I understand it, the Department for Energy Security and Net Zero has said that that is not the direction that it intends to go in.

[Lord Hannay of Chiswick (CB)]

My Lords, will the Minister tell us whether the Treasury has made any estimates of how much oil, in value, Iran needs to export before it drops below a way of maintaining any form of international economic viability? Has the Treasury estimated how Iran will cover its shortfall in foodstuffs and such materials that are, and have always been, needed by Iran beyond those that it grows itself?

[Lord Livermore (Lab)]

Those are both very interesting questions. I cannot say that I am aware of estimates on either of those—they certainly have not crossed my desk—but I am more than happy to look into them for the noble Lord. If I find anything, I shall write to him.

International Banking: Payments

Debate between Lord Hannay of Chiswick and Lord Livermore

Thursday 28th November 2024 Lords Chamber

[Lord Livermore (Lab)]

I am grateful to the noble Lord for the points that he raises, and I agree that, of course, we should take these developments seriously. I will not comment on the specific proposals announced by the BRICS countries that he refers to; I would not want to speculate as to what systems may or may not come into common usage. The Government believe very much that the current international model for the financial system works effectively, and we will continue to work with our international partners to maintain an interconnected financial and economic system. On the noble Lord’s question on the effectiveness of sanctions, we continue to believe that economic sanctions are an important and effective tool, and we will continue to utilise those sanctions where necessary. On the potential to undermine them, we will pursue any necessary steps with our allies to maintain the interconnected system and reduce opportunities for the circumvention or evasion of international sanctions.

[Lord Hannay of Chiswick (CB)]

My Lords, does the Minister agree that if the President-elect of the United States goes ahead with some of the more extreme versions of his tariff ideas, it is likely to add a momentum and an impetus to the attempts by the BRICS to break away from the financial system that currently exists?

[Lord Livermore (Lab)]

I am grateful to the noble Lord for his question. On the potential move by the forthcoming Trump Administration, the UK will continue to work closely with the US on a range of security issues, including sanctions, to advance our shared priorities. I do not think it would be appropriate for me to comment on the Trump Administration’s future policies. In terms of actions by the BRICS, we obviously respect each country’s right to choose its own path and partners, but we will continue to collaborate with our international colleagues around the globe, including BRICS members, in forums such as the UN and G20, to build an open, stable and prosperous world.