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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

EconomyTaxationEnergy
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%.

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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