Middle East: Economic Response

Debate between David Mundell and Rachel Reeves

Thursday 21st May 2026 Commons Chamber

[Rachel Reeves]

I am pleased to know that staff from a business in the ceramics sector in Newcastle-under-Lyme are here today, and I say to them directly: this Government have got your back and want to work with you and the trade unions that represent people in the sector to ensure that the ceramics industry plays an important part in British life—particularly in the pottery communities —for many years to come. Of course, we will set out the details of the scheme, but like my hon. Friends who represent these communities in Stoke, Newcastle and Amber Valley, this Government are very keen to crack on with the scheme and make sure that businesses can get the support they deserve.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

Will the Chancellor expand on her discussions with the supermarkets and their role in keeping prices down? When the supermarkets make special offers or reduce prices, there is always a concern that rather than absorbing the costs themselves, they pass them on directly to farmers and their suppliers, who are not in a position to absorb them because of their fixed production costs.

[Rachel Reeves]

The right hon. Gentleman makes a really important point. Today I have set out a number of measures that will directly help the supermarkets to reduce their costs, and it is really important that those cost reductions are passed on directly to consumers. Reducing the cost of running an HGV will have a direct impact on our supermarkets, and reducing tariffs will have a direct impact on costs for our supermarkets. The trade deal that we are looking to do with the EU to reduce the costs of importing exporting food from the EU will also have a direct impact on costs for supermarkets. I say to the supermarkets: those cost reductions must be passed on directly to consumers, who are struggling with the cost of living, given the conflict in the middle east.

Oral Answers to Questions

Debate between David Mundell and Rachel Reeves

Tuesday 10th March 2026 Commons Chamber

[Rachel Reeves]

I am proud to be the Labour Chancellor who has overseen the biggest uplift in defence spending since the end of the cold war. Just last week we announced a £1 billion helicopter deal with Leonardo, based in Yeovil, just down the road from my hon. Friend. Yesterday I confirmed to the House that the Ministry of Defence has access to the special reserve. That means that the added costs of deploying additional capabilities in the middle east will be funded entirely by the Treasury special reserve.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

T2. I am the Member of Parliament for one of the largest rural constituencies in the United Kingdom, so the rise in the cost of heating oil is obviously a major concern for me. I welcome the opportunity to meet the Financial Secretary, and I hope that liquefied petroleum gas can also be on the agenda for that meeting, because that is a heating source for many of my constituents. People such as Craig Ritchie in Symington will be looking for concrete outcomes from that meeting, given that they face a 200% rise in their oil costs.

[Rachel Reeves]

I thank the right hon. Gentleman for raising the important issues with heating oil that his constituents are facing. I very much hope that he will be able to attend the meeting tomorrow. There are two key issues: making sure that vessels can again flow through the strait of Hormuz, which requires a de-escalation of the crisis; and stopping the price gouging that some businesses are engaged in at the moment. That is why I have asked the CMA to look at that too.