Middle East: Economic Update

Debate between Edward Leigh and Rachel Reeves

Tuesday 24th March 2026 Commons Chamber

[Sir Edward Leigh (Gainsborough) (Con)]

In an attempt to get some consensus here, I commend one part of the Chancellor’s statement, where she said:

“We must guarantee that our domestic oil and gas industry can…play a role in our energy system for decades to come”.

Is there not a sensible, middle-of-the-way approach here? We should by all means proceed with green energy—such as offshore wind, in which we lead the world, in the North sea off the Lincolnshire coast—but we should also keep an open mind about new extraction from the North sea. I was listening carefully to what she said to the shadow Chancellor. Will the Chancellor confirm today that the Energy Secretary will keep an open mind when he considers these licences, so that we can guarantee our resilience in the future?

[Rachel Reeves]

I thank the right hon. Gentleman for his approach and for his question. The oil and gas industry plays an important role in our energy system and will do so for decades to come. We very much welcome the jobs that it creates, the tax revenue that it provides and, most importantly, the energy security that it offers. In my Budget, I set out the new North sea oil and gas strategy, which includes allowing the use of tiebacks or infills on existing sites. For the reasons I have explained, the Secretary of State for Energy Security and Net Zero now has to take a quasi-judicial decision on Rosebank and Jackdaw. He will, of course, approach that decision with an open mind because this Government recognise the importance of our oil and gas sector.

Middle East: Economic Update

Debate between Edward Leigh and Rachel Reeves

Monday 9th March 2026 Commons Chamber

[Sir Edward Leigh (Gainsborough) (Con)]

When we are in the middle of a war, I am not sure that it achieves much to be overtly party political. The past is where we were; we are now in the present. Just to be helpful, I agree with the Chancellor on de-escalation and on defending our interests, not pursuing regime change, but the fact is that we have the highest energy costs in Europe. We are now in a crisis and potentially a war economy. I saw the Energy Secretary sitting next to her earlier. Whatever the good intentions on net zero, will she listen to the shadow Chancellor on North sea oil, because we are in this crisis now and have to meet it with every tool in the toolbox?

[Rachel Reeves]

The right hon. Gentleman is absolutely right. The best way to reduce prices for businesses and families in all our constituencies is to de-escalate and ensure that vessels can get through the strait of Hormuz, and that is our focus. But what this crisis, as well as Russia’s illegal invasion of Ukraine, shows us is that we have to wean ourselves off oil and gas. We are better placed now than we were when Russia invaded Ukraine because we get more of our electricity through contracts for difference than we did then, and we are less reliant on gas prices to set our overall energy prices, but this shows that we need to do more to invest in both nuclear and home-grown renewables so that we are not so reliant on imports. However, as I said in my statement, I met North sea oil and gas leaders last week to talk about how we can support them during this time to ensure that we have access to the reserves we need.

Oral Answers to Questions

Debate between Edward Leigh and Rachel Reeves

Tuesday 4th March 2025 Commons Chamber

[Sir Edward Leigh (Gainsborough) (Con)]

T5. I hope that I will not damage the Chancellor if I commend the fiscally conservative way in which she is increasing defence spending. Given that if every European country matched our 2.5% commitment, we could release over £150 billion of defence spending, does she agree that we can crack this, because war and peace are always won, ultimately, by the size the economy?

[Rachel Reeves]

I very much agree with the right hon. Gentleman. This is why I met my fellow European Finance Ministers in Cape Town at the G20 last week. All of Europe needs to step up. The British Government are doing so and we need to see that from other countries, too.

Oral Answers to Questions

Debate between Edward Leigh and Rachel Reeves

Tuesday 21st January 2025 Commons Chamber

[Sir Edward Leigh (Gainsborough) (Con)]

When I visited St Barnabas hospice in Lincoln recently, the chief executive told me that it was having to pay £350,000 extra every year to cover the national insurance increase. I do not expect an answer now, but as we all agree that palliative care is so important and we want to encourage it, and the Terminally Ill Adults (End of Life) Bill started its Committee stage today, will the Government keep that increase for hospices under review?

[Rachel Reeves]

The Health Secretary set out the settlement for hospices just before Christmas to ensure that they have the money they need, including to compensate for the national insurance increase, but I am happy to arrange a meeting for the right hon. Gentleman with the relevant Health Minister.