Middle East: Economic Update

Lord Leigh of Hurley Excerpts

Thursday 26th March 2026 Lords Chamber

[Lord Livermore (Lab)]

I am grateful to the noble Viscount, who clearly has a great deal of expertise in this matter. I agree with everything he said, certainly in the first part of his question. SMRs and AMRs being deployed in the UK will form an incredibly important part of our energy mix. We have set out and published a framework so that we can see more private sector investment in exactly those technologies. As he says, AMRs in particular can provide very high heat to decarbonise a lot of our industry, which is incredibly important. They do not need to connect to the grid, so they do not use up grid connections. That is exactly the kind of technology that we would like to see deployed more. As I said, we have published a framework so that we can see more private investment in exactly those technologies.

[Lord Leigh of Hurley (Con)]

My Lords, while the Minister is not transferring to the Diplomatic Service—we would miss him greatly—there does seem to be a sense of denial in the question by the noble Lord, Lord Eatwell, and the Minister’s answer. GDP is now expected to expand by just 0.7% this year, according to the OECD interim economic outlook, which he will know was published today. That is down by 0.5 percentage points from the organisation’s prior prediction of 1.2%. This would put the UK second last in the G7 growth table and represents the largest downgrade in growth projections for any G20 economy. Rather than denial, we need to face reality. I am particularly concerned that, in the debate on this matter in the other place earlier this week, the Chancellor kept referring to the fact that borrowing will fall. Does the Minister think she really understands the difference between deficit and debt?

[Lord Livermore (Lab)]

Yes, I am absolutely certain that she understands the difference between those two things. As I have said already, the war in the Middle East is not one that we started nor one we have joined, but it will have an impact on our country. The OECD’s projections are highly sensitive to the duration of the shock and reflect the impact of higher energy prices, to which the noble Lord knows we are more exposed than many other countries. But I am absolutely certain that, in an uncertain world, we have the right economic plan. The decisions we have taken have put us in a better position to protect the country’s finances and family finances from global instability.