Melanie Onn
Main Page: Melanie Onn (Labour - Great Grimsby and Cleethorpes)Department Debates - View all Melanie Onn's debates with the HM Treasury
(1 day, 7 hours ago)
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Rachel Reeves
I thank the hon. Gentleman for his representation of the agricultural sector. As he knows, on the two occasions when we have extended the 5p cut in fuel duty, a commensurate benefit has been applied to red diesel, but I recognise the challenges faced, in the current conflict, by the agricultural sector and other sectors that are big users of diesel. That is why we are working hard with industry to ensure that the sectors get the support that they need. Crucially, we are also trying to de-escalate the conflict and reopen the strait of Hormuz to improve the availability of diesel and fertiliser.
Melanie Onn (Great Grimsby and Cleethorpes) (Lab)
I congratulate the Chancellor on her statement. The setting of electricity prices to international gas prices has long been blamed for the erratic nature of our electricity bills—indeed, that was previously accepted by the Conservative party. While the Conservatives complained about it and did nothing, this Government are seeking to take action to disconnect those two issues. Will the Chancellor advise when she thinks that families will start to see a benefit from the decoupling of electricity prices from international gas prices?
Rachel Reeves
My hon. Friend knows what she is talking about, not least because she is the MP for Great Grimsby and Cleethorpes, but also as a result of her previous career before taking her seat at the last election. There are two ways in which people will benefit. The first is in the short term, through the higher electricity generator levy. We have increased the rate from 45% to 55%, which will bring in money this year that can help us as a Government to relieve some of the pressure on families and businesses. We will also use the higher levy to negotiate the contracts for difference at a good price for bill payers and taxpayers so that we get rid of that volatility. I am confident that in the months ahead, while we have the higher electricity generator levy in place, we will be able to negotiate the new contracts and reduce the volatility. Crucially, the reduction in volatility will benefit both households and businesses.