Middle East: Economic Response

Debate between Rachel Reeves and Aphra Brandreth

Thursday 21st May 2026 Commons Chamber

[Rachel Reeves]

I thank my hon. Friend for that question. I am pleased that people in Rugeley and people working for Armitage Shanks will also benefit from this investment. The £120 million to support our ceramics sector is a clear indication of this Government’s intention to back British jobs and British industry.

[Aphra Brandreth (Chester South and Eddisbury) (Con)]

Although I welcome some of the measures announced today, the reality is that instability in the middle east is having a direct impact on the UK economy and on the price paid by British households. Can the Chancellor therefore outline what steps her Department is taking to work across Government to ensure a stable region, including by boosting our defence spending? Will she finally commit to spending 3% of GDP in this Parliament and to working collaboratively towards reopening the strait of Hormuz?

[Rachel Reeves]

I do think it is a little rich for Conservative Members to talk about the instability from the middle east conflict—a conflict that they wanted Britain to join in from day one, but which our Prime Minister made the decision to keep Britain out of, because that war was a mistake and it is having an impact on British businesses and British families. I am proud to be the Chancellor who has overseen the biggest uplift in defence spending since the end of the cold war. We are spending £270 billion during this Parliament, taking spending to 2.6% by April next year. The Conservatives said they would get to 2.5% by the end of this Parliament. They had no paid-for plans to do so; we are achieving it three years early.