Debate on the Address

Debate between Scott Arthur and Ed Davey

Wednesday 13th May 2026 Commons Chamber

[Ed Davey]

Not at the moment.

To be fair to the Government, some of our current economic problems stem from President Trump and his reckless war in Iran. Let us be absolutely clear: Trump’s war is stoking the cost of living crisis to new and alarming levels—fuel prices are up at the pump, food prices are set to go up even more, and people’s holidays are threatened. The Prime Minister’s biggest success was not taking us into Trump’s damaging war with Iran when the Conservatives and Reform were urging him to do so, yet because of the Government’s failure to build new and deeper economic alliances with Europe and the Commonwealth, as we have been urging them to do, this country is set to be hit far harder by the inflation caused by the situation in the strait of Hormuz.

[Dr Scott Arthur (Edinburgh South West) (Lab)]

We all recognise the impact that Trump’s war is going to have on our economy. The right hon. Gentleman offers membership of the single market and the customs union as a solution to that, but prices in Edinburgh South West are going up right now. How long, in his estimation, would it take to access the single market and become a member of the customs union?

[Ed Davey]

The hon. Gentleman has obviously not noticed that we are the only party who have put forward a costed package to reduce the cost of petrol and diesel at the pumps—something that could be done immediately. I think he should pay more attention.

Trumpflation is predicted to be worse here because of the failures of this Government, and indeed the last. Cosying up to this White House was never going to work, and it has not. I suspect that history will show that the Prime Minister’s approach to President Trump was one of his worst mistakes.

The sad truth is that President Trump is one of the reasons why so many people in our country feel insecure, anxious and fearful about the future. From trade tariffs to the weakening of NATO, President Trump has broken all the certainties British people and businesses used to rely on, yet this Government have been far too slow to realise that and to respond to this new reality. The Conservatives and Reform may not have woken up, but there is no excuse for the Government. It has therefore been left to us. The country can know that my party will champion the new and changing international alliances that are so vital for the British economy and the defence of the United Kingdom.

Let me try to find an area of agreement. I do welcome the Government’s decision to bring forward an energy independence Bill, although we will scrutinise it line by line and advance our more ambitious ideas. I have long felt that energy independence should be a long-term goal for our country and our allies; even before Trump’s war in Iran, people and businesses were being hit because of our dependence on others for fuel. Energy bills for households are still around a third higher than before Putin’s war in Ukraine. When fossil fuel dictators like Vladimir Putin can hit the pockets of every family and pensioner in our country and tyrannical regimes like Tehran’s can hold our country and the world to ransom, surely it is time to wake up.

Oil and gas prices have a long history of spiking and hurting our economy. Even when North sea oil and gas production was at its height—now almost 30 years ago—the UK could still be hit because we have always been price takers. While I have always been pragmatic about our North sea oil industry for our economy—not least in Scotland—it is simply fantasy and fabrication for some in this House to pretend that there is a solution in the North sea to high energy prices.

The best way to cut energy bills is to invest in home-grown renewable power. We will therefore push the Government to go further in the energy independence Bill, just as we did on solar power early in this Parliament with the sunshine Bill of my hon. Friend the Member for Cheltenham (Max Wilkinson)—now reflected in law.

The Prime Minister, or whoever replaces him, must take up our plan to protect people from Trumpflation on fuel bills and cut fuel duty, rail fares and bus prices to protect British families and businesses right now.

The Liberal Democrat agenda of greater security for families and businesses begins with greater economic, financial and energy security, but it is also built on greater security for our country. The Government must do far more to bolster our nation’s defences. With Vladimir Putin waging war in Europe and the need to redouble our efforts to support our brave Ukrainian allies to beat Russia, with a wildly unpredictable President sitting in the White House, leading a dangerous and idiotic war in the middle east and undermining NATO at every turn, and with a world order challenged by the rise of China, the case for an urgent and significant rise in defence spending is clearly a strong one.

It is even stronger when one looks at the state of our defence readiness. The Conservatives failed on the No. 1 task of any Government: to defend our country and back our armed forces. They left our Army at its lowest size since the Napoleonic war, and they left our Navy at its lowest size since the English civil war. Yet this Labour Government have moved at a snail’s pace, failing month after month to publish their own defence investment plan. In contrast, we have called for the immediate launch of defence bonds to raise £20 billion over two years, building on successful models used by Poland, and for a commitment to spending 3% of GDP on defence by 2030 at the latest. We have argued for a new European rearmament bank so that our defence industries will lead the next generation of defence technologies.

If the history of the last century taught us anything, and if the experience of President Trump has taught us anything, it is essential and urgent that we work with our European and Commonwealth allies to secure and defend our country, our values and our way of life.

Central to our British way of life is the NHS, to which I now turn. It is important I do so, because I am likely to be the only Opposition party leader to stand up for healthcare in this debate, as the Conservatives are so embarrassed by their record and Reform’s leader has spent decades saying that he wants to get rid of the NHS entirely. The Government would have us believe that they have turned the NHS around after the mess left by the last Government, but when he is not plotting his next leadership bid against the Prime Minister, the Secretary of State would have Labour Back Benchers believe that he is fixing the NHS. If only.

Now we are told that the Health Secretary is planning to resign tomorrow. This resignation is taking so long that it would give NHS waiting lists a run for their money. Anyone who visits their local hospital knows that the NHS remains in a critical state. Thousands of people are still being treated in hospital corridors every day. We are now even seeing job adverts for people to provide care in corridors.