Middle East: Economic Update

Jonathan Davies Excerpts

Monday 9th March 2026 Commons Chamber

[Rachel Reeves]

I have huge respect for the hon. Member. As the former Chancellor of the Exchequer, the right hon. Member for Godalming and Ash (Sir Jeremy Hunt), says, it is too early to know what the impact of this crisis will be. That is why I met with G7 Finance Minister colleagues today, which I am sure the hon. Member for North Dorset (Simon Hoare) welcomes. We discussed the release of the International Energy Agency’s strategic oil reserves, for example. What is needed to contain prices for all our constituents is to ensure that we have the oil and gas on the market that we need. That is why we are prioritising diplomatic routes to de-escalate this crisis.

[Jonathan Davies (Mid Derbyshire) (Lab)]

I thank the Chancellor for her statement, because this is a worrying time for not just our national security, but our economy. I am pleased to hear about the work going on with the Competition and Markets Authority in respect of consumers of heating oil, but may I suggest that she has a conversation with her colleagues in the Department for Energy Security and Net Zero to expedite the £1 billion-worth of community energy investment coming through the local power fund and focus it as quickly as possible into rural areas such as mine in Derbyshire? If this is going to be a protracted conflict, that could make a difference.

[Rachel Reeves]

In the spending review last year, I put in £1 billion for the community investment fund in local energy schemes to ensure that communities are more self-reliant for their basic energy needs. That is the lesson from Russia’s invasion of Ukraine, and it is also the lesson from this conflict in the middle east. We need to be more resilient and secure as an economy, and that is exactly what we are doing.