Middle East: Economic Update

Debate between Luke Murphy and Rachel Reeves

Monday 9th March 2026 Commons Chamber

[Rachel Reeves]

I have huge respect for the hon. Gentleman, who is on the Treasury Committee, but his party has opposed every increase in taxes that we have brought in to better fund our public services, including higher defence spending. Like me, he will be looking at what is happening in the financial markets. I am not convinced that this is the time to unleash more borrowing on the markets. That is what Liz Truss tried, and look where it got us.

[Luke Murphy (Basingstoke) (Lab)]

I welcome the Chancellor’s statement, particularly the focus on energy security and our plan for home-grown clean energy. It has been astonishing since the election to hear that the Conservatives’ lesson from the Ukraine crisis was that we needed to be more dependent on international fossil fuels, after it cost us £78 billion, as the former Chancellor, the right hon. Member for Godalming and Ash (Sir Jeremy Hunt), just said. The Chancellor mentioned the electricity generator levy. Will she tell the House how and when that would be activated?

[Rachel Reeves]

The energy profits levy is still in place, and the higher prices go, the more windfall tax is paid. There is also the electricity generator levy, whereby if electricity prices go up because they are, in some cases, outside of contracts for difference and linked to gas prices, we will recoup money there. That is obviously important because if the situation goes badly, we will need to be able to better support consumers. That is why the EPL and the EGL were brought in in the first place, and why they are important parts of the architecture we have.

Spring Forecast

Debate between Luke Murphy and Rachel Reeves

Tuesday 3rd March 2026 Commons Chamber

[Rachel Reeves]

I can assure the hon. Gentleman that we will be able to do an awful lot more because we are increasing defence spending compared with the legacy that was left by the Conservative Government, and it will be the biggest increase in defence spending since the cold war because of the decisions that we have made as a Government. Because of our Prime Minister’s decisions at the weekend, we are degrading Iran’s capability to continue these attacks.

[Luke Murphy (Basingstoke) (Lab)]

I thank the Chancellor for her statement. The thing that animates my constituents most is the cost of living and the crisis in their living standards—a crisis that came about as a result of the failed economic policies of the Conservative party, whose record on living standards in the last Parliament was the worst on record. My constituents particularly welcome the action on energy bills, rail fares and childcare, but will the Chancellor confirm that she and the Government will continue to focus on driving up the living standards of my constituents through every future policy, piece of legislation and Budget?

[Rachel Reeves]

People in Basingstoke will benefit when they commute to work on a train, when they pay for their prescriptions and when they get their energy bills, which are coming down next month. Reducing borrowing and the cost of borrowing means that we have more money to spend on the priorities of people in Basingstoke, rather than just paying the interest on the debt racked up by the Conservative party.

UK-China Economic and Financial Dialogue

Debate between Luke Murphy and Rachel Reeves

Tuesday 14th January 2025 Commons Chamber

[Rachel Reeves]

The national wealth fund created by this Government will get investment into industries such as carbon capture and storage, green hydrogen, ports and, indeed, steel. We were really pleased at the end of last year to be able to announce investment in carbon capture and storage in Merseyside and Teesside, securing billions of pounds of investment into those economies and securing many thousands of jobs.

[Luke Murphy (Basingstoke) (Lab)]

I thank the Chancellor for her statement. I think it is worth reminding the House that under the previous Government business investment fell to 28th out of 31 OECD countries, which was lower than Latvia, Slovenia and Hungary. Could the Chancellor set out how our industrial strategy will overcome that terrible legacy on business investment left by the Conservatives?

[Rachel Reeves]

One of the reasons for such poor investment—the lowest of all the G7 economies—is that our planning system makes it so hard to get anything done in this country. That is why the planning and infrastructure Bill, which is being brought forward by my right hon. Friend the Deputy Prime Minister, will turn that around, making it easier to invest in transport, in digital, in housing and in so much more. That is the way to get our economy growing after 14 years of failure.

Public Spending: Inheritance

Debate between Luke Murphy and Rachel Reeves

Monday 29th July 2024 Commons Chamber

[Rachel Reeves]

As the hon. Gentleman knows, estimates have to be published to ensure that Government funding continues, so we had to publish those main estimates, but we will be presenting new estimates to the House based on the revelations that we have set out today.

[Luke Murphy (Basingstoke) (Lab)]

Can I express the anger that many of my constituents will be feeling, not just about the economic mismanagement and the litany of broken promises from the Conservative party, but about the complete failure to be transparent both with them and with the British public at large? What does the Chancellor have to say to the Conservative party about the way it behaved in office?

[Rachel Reeves]

We have now been in the Chamber for one hour and 40 minutes, but we have not had a single apology from any Opposition Members. They should have come to the Chamber today and apologised; they have not done so. The country kicked them out of office three and a half weeks ago, and we can tell why.