Middle East: Economic Update

Debate between Oliver Dowden and Rachel Reeves

Monday 9th March 2026 Commons Chamber

[Rachel Reeves]

Last week’s spring forecast from the Office for Budget Responsibility showed inflation coming down, borrowing coming down and debt coming down. Our economy is fundamentally strong, but we all need to see a de-escalation of this conflict and the reopening of the strait of Hormuz to ensure that our constituents continue to benefit from falling energy bills and falling interest rates. That is why we are so focused on the diplomatic efforts.

[Sir Oliver Dowden (Hertsmere) (Con)]

As the Chancellor has repeatedly said, at the root of the current economic crisis lies the closure of the strait of Hormuz. What conversations have the Government had with the Trump Administration, both about insurance and, more importantly, about deploying UK military assets to secure the reopening of the strait? Does she agree that a more robust approach might reassure our friends and allies in the Gulf who invest so much in the United Kingdom? Our presence there has been notable by its absence.

[Rachel Reeves]

There are two things that are needed to effectively reopen the strait. The first is security for vessels passing through it, which will require cross-country action involving the US, of course, but also the UK and France. We all stand ready to do that, and that was one of the things we discussed on our G7 Finance Ministers’ call today. Once that is provided, we also need to ensure that appropriate insurance products are in place, and we are working on that with Lloyd’s and the US Administration. We are the global leader in maritime insurance, so we have an important role to play to ensure those vessels are properly insured once they start to move again.

Oral Answers to Questions

Debate between Oliver Dowden and Rachel Reeves

Tuesday 21st January 2025 Commons Chamber

[Rachel Reeves]

I join my hon. Friend in congratulating Intasite on its 10th anniversary as a business, and on the rapid growth it is enjoying. The announcement we were able to make last year on the carbon capture and storage work in Teesside will be a big driver of jobs and growth there, and I look forward to working with him and local businesses in Stockton to make that a reality.

[Sir Oliver Dowden (Hertsmere) (Con)]

Does the Chancellor of the Exchequer propose funding the reported £9 billion bill to the Mauritians for the continued use of Diego Garcia through higher taxes, more borrowing or spending cuts?

[Rachel Reeves]

We are in discussions with the new Administration in the United States around the future of Diego Garcia. We will set out details in the spending review, as the right hon. Gentleman would expect.