Middle East: Economic Update
Debate between Rachel Reeves and Ellie Chowns(5 days, 18 hours ago)
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Rachel Reeves
My hon. Friend is right about the importance of manufacturing in Huddersfield and more widely across Yorkshire. We are introducing the supercharger from the beginning of April, which will take £420 million off the energy bills of the most energy-intensive industries. The British industrial competitiveness scheme will also help over 5,000 businesses when it comes in next year.
Dr Ellie Chowns (North Herefordshire) (Green)
The fuel price shock caused by Trump’s reckless war highlights just how risky it is for the UK to be locked into the global fossil fuel markets. The Climate Change Committee recently pointed out that the cost of achieving net zero by 2050 is less than the cost of a single fossil fuel price spike, reinforcing the point that we need to invest in clean, green technologies and get ourselves off being hooked on fossil fuels.
The key problem in the UK is that gas is coupled to electricity prices, so decoupling is crucial. Will the Chancellor look at the report last week from Common Wealth, which points out that decoupling could be achieved right now and would save households at least £200 each year?
Rachel Reeves
I agree that de-escalation is the best way to reduce bills for families and businesses. I gently say to the hon. Lady that we want investment in renewables, and we introduced the Planning and Infrastructure Act 2025 to make it easier to build them, but her party voted against that—a vote which would have kept people’s bills higher than they need to be. We have had a one-third reduction in gas imports, and gas is setting the price of our energy at something like a third less than it was just four years ago. The electricity generator levy and the energy profits levy are ensuring that excess profits are taxed, and we can use that money to support the public finances and public services.
Oral Answers to Questions
Debate between Rachel Reeves and Ellie Chowns(2 weeks, 5 days ago)
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Rachel Reeves
In the Budget last year, we introduced the Kernow growth fund to support the Cornish economy because of its specific strengths around critical minerals, defence and clean energy. The National Wealth Fund and the wider Government will do everything we can to unlock the huge opportunities that we know exist in Cornwall.
Dr Ellie Chowns (North Herefordshire) (Green)
Given the recent Institute for Fiscal Studies report that says that the Treasury’s excessively narrow focus on fiscal rules leads to dysfunctional policy making, and given recent global events showing the uncertainty of fiscal forecasting, does the Chancellor recognise that it is time to move to a more flexible and strategic approach to fiscal rule-making and fiscal policymaking?
Rachel Reeves
I totally reject the premise of that question. The fiscal rules that I introduced as Chancellor have unlocked £120 billion for capital investment. We will be spending £50 billion more on day-to-day spending by the end of this Parliament, but at the same time, we are bringing debt down, bringing the deficit down, bringing inflation down, and bringing interest rates down for all our constituents. Economic stability is the way to grow our economy and make working people in all our constituencies better off, and if we forget that, it is ordinary working people who pay the price.
Middle East: Economic Update
Debate between Rachel Reeves and Ellie Chowns(2 weeks, 6 days ago)
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Rachel Reeves
In the spending review last year, I put in £1 billion for the community investment fund in local energy schemes to ensure that communities are more self-reliant for their basic energy needs. That is the lesson from Russia’s invasion of Ukraine, and it is also the lesson from this conflict in the middle east. We need to be more resilient and secure as an economy, and that is exactly what we are doing.
Dr Ellie Chowns (North Herefordshire) (Green)
The Iran crisis highlights the urgent need to speed up the UK’s energy system transition to clean, green, cheap renewables and energy efficiency. The last time that energy prices went through the roof due to illegal international aggression, in 2022, normal people paid the price while huge energy giants raked in billions of pounds in windfall profits. Will the Chancellor guarantee that in responding to this crisis, she will do everything possible to protect ordinary households and ensure that no energy company makes profits from this war?
Rachel Reeves
The reason we have the energy profits levy and the electricity generator levy is to ensure just that. If the hon. Lady is really serious about energy security and investing in low-carbon energy, I really do not understand why her party opposes planning reforms so that we can build grid infrastructure, as well as both small modular reactors and new nuclear in Suffolk. All those things add to our energy security and reduce our reliance on fossil fuels. Why do the Greens oppose them?
Oral Answers to Questions
Debate between Rachel Reeves and Ellie Chowns(2 months ago)
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Rachel Reeves
My right hon. Friends the Northern Ireland Secretary and the Chief Secretary to the Treasury are in discussions with the Northern Ireland Executive on some of the additional pressures they are facing. We are working through those plans and will have more to say shortly.
Dr Ellie Chowns (North Herefordshire) (Green)
Regional funding must not come at the expense of local authority funding and all devolved funding must recognise the realities in the places where funding is needed, yet under the so-called fair funding review, in just three years Herefordshire council will see a reduction in UK Government fundings to 78% of current levels. The Government have also removed the remoteness adjustment for anything except social care, but rurality does of course matter for bin collections, school transport and many other aspects. Will the Chancellor look again at the fair funding review, which is unfair for so many places, like Herefordshire, and ensure that remoteness is properly adjusted for in the calculation?
Rachel Reeves
My understanding is that the Ministry of Housing, Communities and Local Government is still consulting on this matter, so the hon. Lady and other colleagues will have a chance to feed into that process. In the spending review, we put an extra £600 million into supporting local authorities after the years of austerity under the Conservative Government. While the previous Conservative Prime Minister said he would take money away from poorer areas and give it to Tunbridge Wells, we are investing more fairly in the areas that need it most.