Middle East: Economic Response

Baroness Wheatcroft Excerpts

Monday 1st June 2026 Lords Chamber

[Lord Livermore (Lab)]

Just to be clear, I said that oil and gas production in the North Sea is an important and valuable resource, and I support its continued use. I did not comment on Jackdaw and Rosebank specifically because I am not able to do so at this point, but the noble Lord will know that we are harnessing our domestic supply by managing existing fields for their entire lifetime, including by allowing tiebacks for those fields to ensure that they remain viable. I believe that when the Chancellor set out those measures in advance of legislation, we published further details on tiebacks, which external analysis has predicted could result in tens of millions more barrels of oil being available for UK supply. The announcement that we made gives industry greater clarity to support investment in these projects and maximise supply from our own existing sites in order to support our energy security, and the Government will legislate in due course to introduce these changes.

[Baroness Wheatcroft (CB)]

My Lords, attractions such as zoos and galleries have been campaigning for a long time for a cut in VAT. They argue that such a cut would result in equally high spending, because once people got over the threshold they would spend more in shops and restaurants, and that the Government would get their money. If this is proved to be successful, will the Minister accept that VAT cuts are not just for August?

[Lord Livermore (Lab)]

The noble Baroness knows that we have introduced a temporary cut in the rate of VAT on summer attractions, from 20% to 5%. Over the summer holidays, from 25 June to 1 September, all children’s menu meals served in a restaurant, and children and family tickets for cinemas, theatres, exhibitions, concerts and shows, will be subject to a reduced 5% rate of VAT. Entrance to attractions such as amusement parks, fairs, museums, wildlife parks and adventure parks will be subject to the reduced rate of VAT for both children’s and adults’ tickets. As I say, those measures apply from 25 June to 1 September, which I suppose will give us a real-world opportunity to examine the points that the noble Baroness makes. Obviously, any extension of that would be a matter for the next spending review.