Middle East: Economic Update

Perran Moon Excerpts

Tuesday 21st April 2026 Commons Chamber

[Rachel Reeves]

I agree with the hon. Lady about decoupling. We are using an increase in the electricity generator levy to bring in money immediately and to incentivise companies to move on to contracts for difference. In terms of having to pay when solar and wind cannot be used, what the hon. Lady says would be a little more plausible if the Liberal Democrats had not sat on their hands during consideration of the Planning and Infrastructure Bill. That legislation will enable the energy infrastructure to be built that will bring electricity to people’s homes, lower people’s bills and give us the energy security that we want to see.

[Perran Moon (Camborne and Redruth) (Lab)]

The Chancellor will know that AutoTrader announced last week that, for the first time, the average cost of a new electric vehicle has fallen below the average cost of a new petrol vehicle. There has never been a better time to switch to EVs. Can the Chancellor elaborate on how these targeted announcements, and some of the changes she is making today, will support the switch to electric vehicles?

[Rachel Reeves]

My hon. Friend makes a good point. There are a couple of things we are doing today to make it more cost-effective to get an electric vehicle. First, the decoupling of gas and electricity prices will mean that electricity prices will not be set by high gas prices. That reduces the costs of filling up an electric vehicle with electricity. We are also making it easier for people to install electric vehicle charge points, including on their streets and in their homes. We are making solar panels more available, including in high street shops, to enable people to benefit from that cheap electricity, which they can use to power their homes and their cars.