Middle East: Economic Update

Luke Murphy Excerpts

Tuesday 24th March 2026 Commons Chamber

[Rachel Reeves]

I thank the right hon. Gentleman for that question. When he became Chancellor, it was on the back of lots of promises that there would be no support for energy bills. He and others recognised that that position was not sustainable, but work had not been done on how to introduce a targeted system, so the choice was a binary one between blanket support or no support. The right hon. Gentleman took the right approach then by ensuring that people’s energy bills did not go through the roof; however, a targeted approach would be more appropriate, because under the previous approach, the top third of families got more than a third of the benefit. That is not right or sensible—all it does is drive up inflation, interest rates and taxes in the future. It is not the fault of the former Chancellor that that approach was taken, but we are using this period, when energy prices are actually falling because of the approach I took in the Budget, to ensure that we are in a position to take a targeted approach in the autumn.

[Luke Murphy (Basingstoke) (Lab)]

I am grateful to the Chancellor for her statement, and in particular for setting out the long list of interventions this Government have made on the cost of living, which stands in stark contrast to the record of the Conservatives, who left behind the worst legacy on living standards in a generation. Can the Chancellor confirm that in the weeks and months to come, as she takes decisions on encouraging regulators to take action and in contingency planning, she will keep in mind the need to protect our constituents’ living standards while ensuring economic stability?

[Rachel Reeves]

That is why what we did in the Budget last year was so important. In other countries, domestic energy bills are now going up, but because of the measures that I took in my Budget last November, energy bills will fall from 1 April, despite everything that is happening in the middle east. However, what would have the biggest impact on bills is an escalation in this conflict, which is what the Conservative party initially wanted to happen.