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Middle East: Economic Response
21 May 2026
Lead MP
Rachel Reeves
Debate Type
Ministerial Statement
Tags
EconomyTaxationEnergy
Other Contributors: 56
At a Glance
Rachel Reeves raised concerns about middle east: economic response in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
The Government has an economic plan focused on growth, reducing borrowing and lowering living costs. Recent figures show the UK economy grew faster than expected in Q1 2023, with forecasts upgraded by the IMF. Borrowing decreased significantly last year and is forecast to fall further. Interest rates have been cut six times since the election, real wages are rising, and inflation fell last month. The conflict in Iran presents economic challenges; Ofgem will set energy price caps for July, mitigated by a £150 reduction in bills from last year's budget. If market conditions worsen, targeted support may be provided to businesses most affected. A £350 million fund was established for critical chemicals and a £120 million fund for ceramics industries to increase efficiency and reduce energy costs. Additional support includes a 12-month road tax holiday for hauliers, a cut in red diesel duty, increased mileage allowance rates, and changes to taxation of foreign branch profits to raise hundreds of millions annually. Measures to ease family finances include suspending tariffs on over 100 foods, introducing new powers against excessive profit-making firms, extending the £3 bus fare cap, free bus travel for children aged five to fifteen in August, and a VAT cut on summer attractions from 20% to 5%.
Mel Stride
Con
Central Devon
Question
Why did the Chancellor defend fuel duty increases despite obvious political pressure against them? Will these measures be funded by more borrowing?
Minister reply
The Government has responded to economic challenges with targeted support, such as extending the £3 bus fare cap and introducing free travel for children in August. These measures are funded through tax reforms that raise hundreds of millions annually, certified by the OBR forecast.
Mel Stride
Con
Central Devon
Question
The shadow Chancellor questions the timing of the U-turn on fuel duty and challenges the Chancellor's assertion that economic forecasts have improved significantly. He also inquires about the fiscal impact, specifically whether new borrowing will fund the measures announced.
Minister reply
The Chancellor defends her decision by stating she froze fuel duties twice before this announcement, and cites the need to monitor oil and gas prices during the Middle East conflict. She denies additional borrowing is needed for these measures, highlighting changes around foreign branch tax exemption as a revenue source.
Meg Hillier
Lab
Hackney South and Shoreditch
Question
The MP welcomes the VAT cut in the leisure sector and asks if there will be a full study commissioned to assess its impact on families and the hospitality industry.
Minister reply
The Chancellor agrees with the initiative's potential benefits for hospitality and families but does not commit to a specific study, instead mentioning that it is funded through changes to tax policies such as foreign branch exemption.
Daisy Cooper
Lib Dem
West sussex
Question
The hon. Member welcomes the government's focus on food costs but asks if there is a risk that short-term gain might result in long-term pain, particularly regarding tariffs and the food manufacturing sector. She also questions whether the government will look at differences within the hospitality and leisure sectors, especially indoor attractions versus outdoor activities.
Minister reply
The Chancellor thanks the hon. Member for her questions but maintains that without fully costed measures, there would be higher inflation and interest rates in the future. The tariff reductions are focused on food products not produced significantly in the UK, and she commits to working with the sector to ensure its thriving.
Gareth Snell
Lab
Stoke-on-Trent Central
Question
The hon. Member thanks the Chancellor for support measures announced today and expresses hope that this is a new partnership between the UK Government and UK ceramics, with commitments to boost exports, growth, and create well-paid jobs.
Minister reply
The Chancellor commits to working with Ceramics UK, the GMB, MPs, and the wider sector to ensure that the ceramics industry thrives in the UK.
Stuart Anderson
Lab
South Shropshire
Question
The hon. Member asks for a guarantee that no South Shropshire farmers will be undercut by tariff measures and that supermarkets won't pass on cost cuts to British farmers.
Minister reply
The Chancellor announces £700 million in tariff reductions that do not affect British farmers, and confirms help for British farmers with changes made on red diesel.
John Grady
Lab
Glasgow East
Question
The hon. Member welcomes the statement as great news for cafés, restaurants, and showmen/women in his constituency, pointing out that Conservative debt levels are unsustainable and criticises anti-car policies of SNP councils.
Minister reply
The Chancellor highlights that their fiscal rules aim to reduce debt while investing in infrastructure and public services. Measures include freezing fuel duty, cutting HGV tax, reducing red diesel duty, and increasing tax-free mileage rates.
Andrew Murrison
Con
South West Wiltshire
Question
The right hon. Member welcomes the announcement on red diesel but expresses concern about fertiliser prices due to conflicts in Hormuz affecting agriculture.
Minister reply
The Chancellor urges businesses and farmers to look at product lists and feed into consultations, emphasising that they have chosen tariff lines carefully and are supporting farmers with red diesel reductions. She also highlights efforts to end conflict and diversify oil and gas supplies.
Amber Valley
Question
The hon. Member thanks the Chancellor for the statement, acknowledges her ongoing engagement in supporting Denby Pottery, and asks for a commitment to ensure funding is available as soon as possible.
Minister reply
The Chancellor commits to continuing work with my hon. Friend to find a future for Denby Pottery.
Alistair Carmichael
Lib Dem
Orkney and Shetland
Question
Farmers in the constituency are facing falling prices for beef, milk, and other products due to rising costs of fertiliser and fuel. The MP questions whether food producers should have access to similar support as critical sectors.
Minister reply
The reduction of over a third in the rate of duty on red diesel will help farmers with their costs. The government is doing everything possible to reopen the strait of Hormuz, diversify supply and open up new refining facilities.
Allison Gardner
Lab
West Midlands
Question
The MP asks if part of the £120 million funding announced today can be used by ceramics companies for innovations to help reduce energy bills.
Minister reply
The government is investing in innovation and R&D, as well as diversification of energy supplies.
Kirsty Blackman
SNP
Aberdeen North
Question
The MP questions the job losses that may occur due to changes in oil and gas taxation regime.
Minister reply
The government has changed rules around tiebacks and put in place a permanent mechanism for taxing windfall profits. The current foreign branch profits exemption is moving us in line with how other countries treat foreign profits.
David Williams
Lab
Stoke-on-Trent Central
Question
The MP asks how the £120 million support package will benefit ceramics companies of every size.
Minister reply
This Government are backing British industry and jobs, including in the ceramics sector.
Dwyfor Meirionnydd
Question
The MP asks about extending or repeating the £50 million crisis and resilience fund for heating oil support during autumn.
Minister reply
We are doing a piece of work to see how much money has been used by local authorities and will look at whether further support is needed.
Adam Jogee
Lab
Newcastle-under-Lyme
Question
The MP welcomes the statement and asks for assurance on eligibility and ease of application for the scheme.
Minister reply
We are keen to ensure that businesses can get the support they deserve, and we will set out details of the scheme.
David Mundell
Con
Dumfriesshire, Clydesdale and Tweeddale
Question
The MP raises concerns about supermarkets passing on costs to farmers when making special offers.
Minister reply
We have set out measures that will directly help the supermarkets reduce their costs, which must be passed on to consumers.
Adam Thompson
Con
Erewash
Question
The MP asks how the measures announced today will support Erewash families and boost community events.
Minister reply
Trips to theme parks, funfairs, zoos, museums, and other activities will be cheaper this summer due to the government's action.
Robert Jenrick
Con
Newark
Question
The Chancellor’s approach to the cost of living crisis is to find small ways to subsidise people’s costs, but is not the best solution to build a strong, abundant economy by doing the hard yards of supply side reform? In that economy, there would be better jobs and higher wages, people would be richer and the state would have less bearing on their lives, yet under the Chancellor, the benefits bill is ballooning, unemployment is rising, particularly among the young, and taxes are at their highest ever level. In the spirit of giving people some relief today, will the Chancellor confirm—assuming that she intends to stay in office for the rest of this Parliament—that she will not be increasing taxes on working people at all for the rest of this Parliament?
Minister reply
I will take absolutely no lessons from the man who was part of a party that took our economy to its knees—inflation at 11%, working people worse off at the end of the last Parliament than they were at the beginning, and the worst Parliament ever for living standards—or from a party that has opposed all our reforms to make it easier to get things built in Britain, to increase the wages of working people with the national living wage and the national minimum wage, and to increase the rights of working people, including through statutory sick pay from day one and by ending abusive zero-hours contracts. If we want a lesson on economics, I certainly will not be taking it from the Reform party.
Question
The Chancellor’s announcement of a £120 million support package for ceramics will of course be welcomed in Stoke-on-Trent, but also in Rugeley in my constituency, which is home to many workers at the Armitage Shanks factory in the constituency of my hon. Friend the Member for Lichfield (Dave Robertson), who is a staunch advocate for them. Does the Chancellor agree that it is only this Labour Government who are putting in the investment that firms such as Armitage Shanks need? Does she also agree that iconic British brands like this should play a central role in new homes, to boost them even further?
Minister reply
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.
Question
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?
Minister reply
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.
Naseem Shah
Lab
Bradford West
Question
May I congratulate the Chancellor on the very welcome announcement that she has made? For people in Bradford West, the Great British summer savings scheme will go down an absolute treat. Does she agree that it will also benefit the hospitality industry, which has been struggling for years in my constituency and across the country?
Minister reply
We all listened to my hon. Friend’s response to the King’s Speech last week, when we heard about the great restaurants in Bradford. I am pleased to say that VAT on children’s meals in those restaurants will fall from 20% to 5%, so all hon. Members who are looking forward to a curry in Bradford can enjoy one at Mumtaz, Aagrah and all the other great restaurants in her city.
Question
I would like to start with the positive. I know that care workers in my constituency of North Herefordshire will really welcome the increase in mileage rates, and I welcome the measures that the Chancellor has announced that seem to be starting to tackle profit shifting, which is a key problem related to tax avoidance. Does the Chancellor not recognise, however, that struggling families need help year round, not just short-term sticking plasters in the summer holidays? The Green party is calling for free bus travel for everybody under 22, year round. We are calling for free school meals for all children, to help all families year round. The cost of living crisis requires year-round action. This could be funded easily by taxing wealth fairly. Will she take that year-round bold action to tackle the cost of living crisis properly?
Minister reply
I thank the hon. Lady for that question and for her welcome of the changes to mileage rates and the measures on profit shifting. Obviously not all parties in the House welcome them, so I appreciate the fact that hers does, but we are helping working people. The Renters’ Rights Act 2025 is the biggest upgrade in the rights of renters in a generation; the Employment Rights Act 2025 is the biggest upgrade in the rights of working people for a generation. We have taken the national living wage and the national minimum wage to their highest ever levels. For working families, the 30 hours of childcare, free breakfast clubs, the extension of free school meals and getting rid of the two-child limit are all putting money in the pockets of working people. The measures that I have set out in my statement today on bus fares, fuel duties, VAT and hospitality, and more, will give further help, both in Herefordshire and around the country.
Question
The announcement today of the £120 million fund to support the UK ceramics industry will be so welcome in my part of Staffordshire. Armitage Shanks is often not spoken of in the same breath as ceramics—partly because of the excellent advocacy of the Stokies and my hon. Friends the Members for Newcastle-under-Lyme (Adam Jogee) and for Amber Valley (Linsey Farnsworth)—but ceramics goes much further than flatware. The sanitary ware that comes out of Armitage Shanks is world class, but it is much, much more than that. It is the identity of that village, and it is an iconic British brand. The Chancellor’s support for Armitage Shanks and the rest of the ceramics industry will go down so well, not just with those workers and the GMB workers who are part of that factory, but with my community, so may I thank the Chancellor for her intervention?
Minister reply
My hon. Friend is right that ceramics have a life in many parts of our economy, not just in great heritage businesses like Denby, which produces plates and other ceramics, but in sectors like defence and aerospace, where ceramics are crucial. That is why I am pleased to back them further with the £120 million package announced today.
Question
The conflict in the middle east is not the Chancellor’s fault, but she has chosen this time to make it more expensive for my constituents to take a car from Fishbourne on the Isle of Wight to Portsmouth. Will she do the right thing and scrap the emissions trading scheme levy that she intends to introduce in July this year? It should not only be Scottish islands that are exempt.
Minister reply
The measures that I have announced today will help people on the Isle of Wight. We have frozen fuel duty for the third time—in comparison, the plans that we inherited from the previous Government would have seen fuel duty go up—we are helping farmers with the cost of red diesel, we are helping the rail freight sector and we are supporting HGV drivers. Many people go to the Isle of Wight on their summer holidays and enjoy wonderful days out, and the cost of that will also be reduced, helping that sector in the Isle of Wight this summer.
Jim McMahon
Lab
Oldham West and Royton
Question
I thank the Chancellor for her important statement, not least because the previous Government failed to act on HMRC mileage rates for the 14 years that they were in power, watching as motoring costs went up year after year but doing absolutely nothing for the self-employed and frontline workers, like home care workers. It shows the power of a union like Unison, and it shows that we have a Chancellor who is willing to take the action needed to support working people. Ahead of the Fuller review, will the backdating of these measures support both the self-employed and employed workers alike?
Minister reply
I pay tribute to my hon. Friend, who raised this issue in Treasury questions just a few weeks ago. I committed then to looking at this ahead of the next Budget, but given the ongoing conflict in the middle east, I thought it was right to bring those changes forward and increase the mileage rate for the first time since 2011. I assure him, home care workers, plumbers and all those who use their car for work that we will increase the mileage rate by 10p, backdated to April 2026, for employed and self-employed workers alike.
Dwyfor Meirionnydd
Question
Diolch yn fawro iawn, Dirpry Lefarydd. People are very aware that President Trump’s war with Iran is worsening the cost of living, but there are long-term measures within the gift of the Government that could improve heating costs for households. In north Wales and Merseyside, we pay the equivalent of £255 a year on standing charges, compared with £160 in London. When will the Chancellor address the structural inequality in heating costs?
Minister reply
In the Budget last year, I reduced energy bills by £150, and just a few weeks ago, I put in additional money to help people with the cost of heating oil. The issue around standing charges and those allocations is for the Department for Energy Security and Net Zero, but I will pass on the right hon. Lady’s concerns to the relevant Ministers.
Leigh Ingham
Con
Stafford
Question
The MP thanks the Chancellor for her statement and inquires about how measures will support the British brickmaking sector.
Minister reply
The Minister responds by noting increased capital spending, amounting to £120 billion more than previous plans, aimed at supporting industries such as defence, energy, transport, and healthcare, while also creating jobs and backing British workers.
Sarah Bool
Lab
Halifax
Question
The MP criticises the lack of food manufacturing in the industrial strategy and questions the effectiveness of proposed measures on supermarket prices.
Minister reply
The Minister counters by highlighting a £700 million tariff reduction, urging supermarkets to pass these savings onto consumers. She also mentions HGV duty changes and new powers for the Competition and Markets Authority (CMA) to prevent price gouging.
Clive Efford
Lab
Eltham
Question
The MP asks how tariff cuts will be passed on through supermarkets, given their past practices.
Minister reply
The Minister emphasises the importance of passing cost reductions to customers. She highlights changes in HGV duty and CMA powers to ensure supermarkets do not exploit the situation.
Jeremy Corbyn
Lab
Islington North
Question
The MP raises concerns about rising youth unemployment and requests measures for job access, as well as rent regulation in the private sector.
Minister reply
The Minister outlines increased apprenticeships with relaxed entry requirements, shorter programmes, and improvements through the Renters’ Rights Act 2026 to limit annual rent increases.
Camden North
Question
The MP thanks the Chancellor for measures supporting attractions and hospitality, inquires about CMA monitoring.
Minister reply
The Minister confirms that the London Eye is included and notes the importance of addressing cost-of-living pressures on families. She mentions VAT cuts to support days out and children's meals.
Skelmersdale
Question
The MP requests further emergency measures to control energy bills, such as an essential energy guarantee and social tariffs.
Minister reply
The Minister explains the extension of the energy profits levy, increased electricity generator levy, and reduction in gas prices through last year’s Budget.
Battersea
Question
The MP welcomes measures but asks about strengthening economic ties with EU to address financial pressures.
Minister reply
The Minister confirms ongoing negotiations for reducing costs of agricultural, food, and farming products from the EU, increasing markets for British farmers, and enhancing youth mobility schemes.
Calvin Bailey
Lab
Walthamstow
Question
The MP supports measures for small businesses in his constituency and asks about further support for families facing rent pressures.
Minister reply
The Minister notes the Renters’ Rights Act to limit rent increases, 30 hours of free childcare, abolition of two-child limit on universal credit, and roll-out of free breakfast clubs.
Lillian Jones
Con
Rother Valley
Question
The MP asks about measures supporting the UK wood and timber sector facing challenges such as price volatility.
Minister reply
The Minister mentions benefits from supercharger scheme and British industrial competitiveness scheme, while suggesting a specific meeting with the relevant minister to discuss wood and timber issues.
Question
Welcomes the Chancellor's decision to increase mileage rates for employed and self-employed workers, asking if she has spoken with Scottish Government counterparts.
Minister reply
Confirms that the increase in mileage rates is the first since 2011, alongside changes to employment rights laws, and pays tribute to Unison's long-standing advocacy.
Question
Welcomes VAT cuts for summer attractions and encourages families to use leisure facilities like those in Bracknell Forest.
Minister reply
Encourages families to enjoy leisure activities, including meals out and free school meals for children on universal credit starting September.
Question
Thanks the Chancellor for measures supporting farmers and hauliers in Banbury, asking if they will continue to review logistics sector pressures.
Minister reply
Commits to reviewing support for businesses, mentioning that reopening the Strait of Hormuz would help reduce costs but continuing to keep other pressures under review.
Question
Welcomes the Chancellor's measures and inquires about whether ice skating is included.
Minister reply
Acknowledges not knowing if ice skating is included but confirms that London Eye reductions are part of the VAT cut measure.
Question
Inquires about how the £350 million critical chemicals resilience fund will promote jobs and growth in Hartlepool.
Minister reply
Details support for chemical sector businesses, including capital and day-to-day costs reduction measures, to make the sector more sustainable and competitive.
Question
Thanks the Chancellor for addressing cost of living crisis with £350 million chemicals resilience fund, asking about long-term free travel initiatives in Europe.
Minister reply
Notes measures on food costs reduction, including tariffs and transport support; mentions monitoring impact and Co-op price reductions as an example.
Question
Welcomes the Chancellor's announcement of reduced VAT for children’s meals at theme parks and farms.
Minister reply
Reiterates measures to keep prices down in supermarkets and reduce costs for lunch at cafés or restaurants when families have a day out.
Question
Congratulates the Chancellor on closing tax loopholes used by oil and gas firms.
Minister reply
Details measures to close tax loopholes, increase energy profits levy, and introduce fuel finder to ensure best deals for customers.
Question
Asks if the 15% VAT cut applies to all restaurants serving children’s meals and inquires about extending this measure.
Minister reply
Confirms that the reduced VAT of 5% for children’s meals will apply to pubs, hotels, restaurants, and cafés from June 25 to September 1.
Question
Families across my constituency will be relieved to hear the measures set out by my right hon. Friend, whether that is the freezing of fuel duty, free bus travel for young people this summer or the suspension of tariffs on essential food items. Can the Chancellor set out how much she envisages these measures combined will save families in the north-east? Will she keep measures, including on energy bills, under review, ahead of the winter?
Minister reply
People in more rural areas, such as some of my hon. Friend’s constituents, will particularly benefit from the freeze in fuel duty and the free bus fares for kids. We think that the changes in fuel duty have already saved people around £100 a year, and we expect the same sort of benefit thereafter. Drivers of heavy goods vehicles will benefit by up to £912 through those changes. The bus fare changes are unlimited free bus travel for five to 15-year-olds, and we can add in the savings on days out and meals out.
Chris Webb
Con
Blackpool North
Question
The plans outlined today by the Chancellor will be a massive boost for families in my constituency, but also for the hospitality and tourism sector. Since the Chancellor made her statement, my phone has not stopped ringing; businesses, theme parks and organisations from across the town are welcoming this news. On their behalf, as well as for my own part, may I invite the Chancellor to Blackpool this summer to see at first hand the positive difference that her policies will make in our town?
Minister reply
I am really excited about what is happening in Blackpool in the lead up to the 100th anniversary of the Blackpool illuminations in three years’ time. I very much look forward to my next trip to Blackpool.
Wolverhampton South West
Question
Parents, grandparents and carers will know that keeping children busy during the summer can feel like an expensive endurance event. Will the Chancellor assess the economic and social value of the great British summer package of savings, particularly its impact on opening up access to museums, cinemas, libraries, sports facilities, theatres, theme parks and attractions?
Minister reply
Expanding their cultural capital is what my children want to do every weekend. I want children and families to be able to enjoy this summer. As a former teacher, my hon. Friend will know that although the summer holidays are a welcome relief for teachers and children, it can often be a time of worry for parents.
Filton and Bradley Stoke
Question
People across Filton and Bradley Stoke constituency work hard, and being able to enjoy time together as a family this summer is important for everyone. Could she please set out how the decisions that she has taken to stabilise the economy have made it possible for the Government to fund this?
Minister reply
It is important that all the policies are fully costed and fully funded, and the change in foreign branch exemption will fund today’s package of measures. The reduction in inflation due to the measures set out last year, and the strong growth—the fastest in the G7 in Q1—make the package affordable and sustainable.
Lola McEvoy
Lab
Darlington
Question
I wholeheartedly welcome the Chancellor’s intervention at a time when the cost of living is increasingly putting pressure on working families. Not only has this Labour Chancellor intervened to make sure that families in my constituency can have a much better summer, but their jobs will be secure for much longer.
Minister reply
This package was not just designed by me; it was designed by hon. and right hon. Members of this House who have made representations about the cost of living and specific business needs and challenges in their constituencies.
Jessica Toale
Lab
Pudsey
Question
I congratulate the Chancellor on her skilful management of our economy in difficult international circumstances. I particularly welcome the great British summer savings scheme, which will make a huge difference to families and business in my constituency. Can she reassure my constituents that the fuel duty freeze, and the reduction in tariffs on foodstuffs, will be felt directly in their pockets?
Minister reply
The freeze in fuel duty will continue until the end of this year and we will keep it under review depending on what happens in the Middle East. I expect that hon. and right hon. Members would be forgiven for wanting to have a chocolate biscuit after a day of work.
Cat Eccles
Lab
Stourbridge
Question
I welcome the announcement from my right hon. Friend, particularly the suspension of import tariffs on more than 100 food and drink staples. I know that my constituents across Stourbridge, Brierley Hill and Netherton have been struggling with the cost of a weekly shop. Could the Chancellor assure the House that the Government remain committed to the healthy food standard?
Minister reply
A whole range of products are included in the tariff reductions, including imports of tropical fruits, bananas, olive oil and much more.
Tracy Gilbert
SNP
Edinburgh North and Leith
Question
I welcome the measures that my right hon. Friend has announced today, which will help ease cost of living pressures on families in Edinburgh this summer. Earlier this year, the Government set out plans to break the link between wholesale gas prices and electricity costs. Can my right hon. Friend provide an update on those plans?
Minister reply
In the short term, we have increased the electricity generator levy by 10 percentage points to bring in more money this year. We are renegotiating contracts to move electricity prices onto contracts for difference to give greater stability of energy prices.
Perran Moon
Lab
Camborne, Redruth and Hayle
Question
Inflation is down, wages are up, interest rates are down, and growth is up. The British industrial competitiveness scheme offers important support for economic growth but excludes the critical minerals sector. Will she meet me to discuss energy support measures for the critical minerals sector?
Minister reply
As my hon. Friend knows, I am absolutely committed to the critical minerals sector. We have already introduced the Kernow growth fund for Cornwall and instructed the National Wealth Fund to invest more in critical minerals.
Alison Hume
LD
Richmond Park
Question
The news that bus travel will be free for children this summer is extremely welcome. Does my right hon. Friend agree that this is a golden opportunity for East Yorkshire Buses and Transdev to boost summer capacity, ensuring that children from deprived communities in Scarborough are not squeezed off the buses by tourists travelling to the coast for a great British summer?
Minister reply
I would encourage bus companies to use this as an opportunity to increase the services they offer this summer as they cater for more young people on their buses. I am sure that many hon. and right hon. Members will have enjoyed days out at the aquarium in Scarborough and dinner at the Magpie in Whitby, which serves very good fish and chips.
Andrew Cooper
Lab
Stockton North
Question
Madam Deputy Speaker, you will of course be aware that the best summer attraction is the Northwich piña colada festival, which is enjoyed by boys and girls of all ages. I thank the Chancellor for her statement. The relief she is providing to the chemicals industry will be welcomed by sector businesses in Mid Cheshire. Their expertise and innovation contribute significantly to both local employment and national resilience. I have previously spoken about the rising input costs and regulatory challenges that these businesses face, and I look forward to hearing more about how she will consult with the industry on eligibility for the funds. Does she agree that the forthcoming summit with the EU presents an opportunity to bear down on regulation further by seeking alignment and mutual recognition on the UK and EU REACH—registration, evaluation, authorisation and restriction of chemicals—regulations?
Minister reply
I am slightly worried that someone will make a point of order about the age at which people are allowed to enjoy the Northwich piña colada festival. Yes, we will be consulting on chemicals and ceramics to ensure that we give businesses the right support, but we do not want a long consultation to get in the way of actually getting the support to those businesses. My hon. Friend made an important point about our trading relationship with our nearest neighbours and trading partners. We are proud to be a Government who have done trade deals with the Republic of Korea, the United States, India and, yesterday, the Gulf countries. However, the biggest prize is a trade deal and improved trading relations with our nearest neighbours and trading partners in the EU, and I hope that we will make progress on that in the next few months.
Shadow Comment
Mel Stride
Shadow Comment
The Chancellor's decision to cancel the fuel duty rise is long overdue. The Conservatives had campaigned against it for months, but the Government defended the policy until political pressure forced a U-turn. The upgraded IMF forecast does not justify these measures; borrowing has increased significantly compared to inherited plans and inflation remains high in the G7. While some measures like mileage allowances are welcome, they do little to address the economic challenges caused by this Government's actions. Families face rising costs and taxes, businesses fold, unemployment is up, and energy security is compromised due to a decision not to exploit UK resources while importing from Russia. The Chancellor should commit to spending reduction, tax cuts, and strengthening the economy rather than relying on U-turns.
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