Middle East: Economic Response

Baroness McIntosh of Pickering Excerpts

Monday 1st June 2026 Lords Chamber

[Lord Livermore (Lab)]

I find myself having the unusual experience of agreeing with the noble Baroness. Bus use is incredibly important. It is highest among lower-income households for trips outside of London. People in the lowest household income quintile make around 1.7 times as many trips as the average person and 3.7 times as many of those in the highest income quintile, so it is a very progressive policy. I am pleased that the Chancellor was able to provide the DfT with over £100 million of additional funding for free bus travel for children aged five to 15 for the month of August. That costs £100 million just for one month, so this is not an inexpensive policy. Clearly, extending it further would be a matter for the next spending review.

[Baroness McIntosh of Pickering (Con)]

I wish to raise the issue of the increase in price and the shortage of supply of red diesel and the impact that that is having on farming and food production. Is that something the Government are monitoring, and might they take steps to alleviate the damage being caused to farming communities?

[Lord Livermore (Lab)]

As the noble Baroness will know, as she is far more expert in these matters than I am, in order to support farmers and the freight industry we have cut duty on red diesel. Red diesel costs almost doubled at their peak and are now around 50% higher than their pre-crisis levels, so the Government are going further, cutting the duty rate on red diesel by over one-third, reducing the rate to its lowest level for over 20 years. This takes effect from 15 June and remains in place until the end of 2026. The noble Baroness will also know that we have cut regular fuel duty by 5p, and diesel will be 11p per litre cheaper throughout 2026 than it would have been compared to plans inherited from the previous Government.