Middle East: Economic Update

Tim Farron Excerpts

Tuesday 21st April 2026 Commons Chamber

[Rachel Reeves]

My hon. Friend is absolutely right that the best economic policy is diplomatic policy; it is reopening the strait of Hormuz, and de-escalating this conflict. That is why the Prime Minister hosted, with France, the coalition meeting last Friday, and why, when I met the US Treasury Secretary last week, we committed to doing more to increase the sanctions and the economic pressure on Iran. My team of Treasury officials met US Treasury officials last week to work out what more can be done, following the excellent work that our two Treasuries have already done together to increase economic pressure on Iran.

[Tim Farron (Westmorland and Lonsdale) (LD)]

As a result of this war, agricultural inflation is running at 7.6%—more than twice general inflation levels. Red diesel has doubled in price and fertiliser supply is under serious threat. Predictably, food prices are likely to rise, causing hardship for millions of people, partly because of Britain’s lack of food security. Is it not time for the Government to U-turn on the Conservative policy that they inherited, which means that England is now the only country in Europe that does not use its farm payments to actively support its farmers to produce food?

[Rachel Reeves]

I thank the hon. Gentleman for his representation of the agricultural sector. As he knows, on the two occasions when we have extended the 5p cut in fuel duty, a commensurate benefit has been applied to red diesel, but I recognise the challenges faced, in the current conflict, by the agricultural sector and other sectors that are big users of diesel. That is why we are working hard with industry to ensure that the sectors get the support that they need. Crucially, we are also trying to de-escalate the conflict and reopen the strait of Hormuz to improve the availability of diesel and fertiliser.