Middle East: Economic Update

Debate between Ayoub Khan and Rachel Reeves

Tuesday 21st April 2026 Commons Chamber

[Rachel Reeves]

This is the second energy price shock caused by a lack of availability of oil and gas in just four years. It shows that we need to invest more in home-grown energy to ensure security of supply and price to help people in Derbyshire Dales and right across the country. That is why we are increasing the electricity generator levy. We are using that money to help people now, but crucially as an incentive to get electricity providers on to contracts for difference, so that we do not have to pay more for electricity just because the price of gas is high.

[Ayoub Khan (Birmingham Perry Barr) (Ind)]

The Chancellor said that we did not start this war and have not joined this war, and the reason for that is that this war is illegal. Iran never posed an imminent threat. Pakistan has taken valiant steps to negotiate a deal, which led to Iran opening the strait of Hormuz, but unfortunately and absurdly, Donald Trump is blocking the strait, causing a major economic crisis for everyone. I welcome the 5p cut in fuel duty and the £150 reduction in energy bills, but the reality is that they are having an insignificant impact on families, especially vulnerable families. What imminent steps will the Chancellor take to help and shield them?

[Rachel Reeves]

I join the hon. Gentleman in paying tribute to Pakistan for the work that it is doing to de-escalate this conflict by hosting peace talks. I would expect all Members of the House to urge all parties to return to those negotiations as quickly as possible, so that we can end the bloodshed but also ensure that bills come back down for families and prices fall at the pumps. We are already taking action to reduce household energy bills through the help with heating oil. Today’s announcements on decoupling and tiebacks, and last week’s announcement on reducing business energy costs through the BIC scheme, are all things that we are doing to help families and businesses with the cost of electricity.