PARLIAMENTARY DEBATE
Middle East: Economic Response - 21 May 2026 (Commons/Commons Chamber)

Before I call the Chancellor to make her statement, I have to say to her that Mr Speaker has checked the ministerial code, which makes it clear that important policy announcements should be made in the first instance in this House when it is sitting. This House and its Members should be the first to know what the Government are doing—not TikTok. Posting videos on social media to announce new policies before informing this House is not in line with the Government’s own rules. This is a new parliamentary Session and Ministers must do better. I call the Chancellor.

Thank you very much, Madam Deputy Speaker. With permission, I will make a statement on the Government’s economic response to the war in Iran and the action that we are taking to support families and businesses with rising costs.

The Government have the right economic plan. I said I would grow the economy, and last week the Office for National Statistics confirmed that Britain’s economy was the fastest-growing in the G7 for the first quarter of this year. We beat the Office for Budget Responsibility’s forecast in the spring, with economic growth at 0.6% in the three months to March. And because of the resilience of our economy, this week the International Monetary Fund upgraded Britain’s forecast for this year.

I said I would cut borrowing. Borrowing last year was £20 billion lower than the previous year, and the latest forecasts show it falling in every year of this Parliament. The IMF has backed our economic plan, saying that the Government’s fiscal framework strikes

“a good balance between deficit reduction and growth-friendly spending”.

I said I would cut the cost of living. Since the election, interest rates have been cut six times; real wages have continued to rise in every single month since I became Chancellor; and yesterday the ONS confirmed that inflation fell faster than expected in April, making the UK the only G7 economy where inflation fell last month.

We have the right economic plan, but the conflict in the middle east poses a significant challenge to the world’s economy, including our own. I have not shied away from my criticism of the war; I believe it to have been a mistake. Nor have I ignored the costs that it will bring to bear on the British people. I have been clear-eyed about my duty to do what I can to support families and businesses; to be responsive to a changing world, and responsible in the national interest.

Next week, Ofgem will confirm the level of the energy price cap that will apply from July. I know that any increase will be felt by families. Because of the decision I made in last year’s Budget to cut £150 from energy bills, we have lessened the impact of rising prices, and current external forecasts suggest that the cap from July will be at a similar level to the cap in April last year. We stand ready to act if market conditions worsen significantly later this year, and I have been leading cross-Government contingency work on the design of potential future targeted and temporary support.

For businesses, any support will also need to be carefully targeted at the firms most exposed to the crisis, but although many firms have been insulated from recent price rises through fixed-price contracts, there are sectors that face particular structural issues related to energy costs. That is why we have already increased support for our most energy-intensive industries through the British industry competitiveness scheme, which we have brought forward. It is also why we have built resilience in our critical infrastructure and industrial strategy sectors, where supply chains are critical for growth and security.

Following representations from my right hon. Friend the Member for Redcar (Anna Turley) and my hon. Friends the Members for Mid Cheshire (Andrew Cooper) and for Bathgate and Linlithgow (Kirsteen Sullivan), and building on the good work of the Minister for Industry, my hon. Friend the Member for Stockton North (Chris McDonald), I am today establishing a £350 million critical chemicals resilience fund to support strategically important producers. Having listened to hon. Friends, including my hon. Friends the Members for Stoke-on-Trent Central (Gareth Snell), for Stoke-on-Trent North (David Williams), for Stoke-on-Trent South (Dr Gardner) and for Amber Valley (Linsey Farnsworth), as well as workers represented by the GMB union, I am today announcing a new £120 million fund to help our historic ceramics sector, helping it to increase efficiency and drive down energy costs. We will always stand up for British industry and British jobs.

This week, the Government have also set out additional, targeted support for those businesses most exposed to rising fuel costs. We are granting hauliers a 12-month road tax holiday for heavy goods vehicles, saving the typical heavy lorry up to £912. To support farmers and the rail freight industry, I have decided to cut duty on red diesel by over a third until the end of this year, and having heard from my hon. Friend the Member for Oldham West, Chadderton and Royton (Jim McMahon) and the trade union Unison, I can today announce a 10p per mile increase in tax-free mileage rates, backdated to April 2026. This will benefit those who need to drive for work, from care workers to plumbers.

When a country faces challenges because of higher oil and gas prices, we must ensure that those who benefit from increased prices and volatility pay their fair share. In my first Budget, I extended and increased the energy profits levy. Last year, I announced a new permanent windfall tax regime on oil and gas prices. Last month, I increased the electricity generator levy, alongside further action to weaken the link between high gas prices and electricity prices. Today, I am bringing forward specific changes to the taxation of foreign branch profits, changing how companies are taxed in relation to their overseas activities. Currently, some oil and gas groups that operate overseas through foreign branches have structured their tax affairs in a way that ensures they pay little or no corporation tax on their UK energy trading profits. Today, we are putting an end to that practice. We expect these reforms to raise hundreds of millions of pounds a year and fund the package of measures set out today, with costings certified by the OBR forecast in the usual way.

I know the pressure that family finances are under, which is why I have already taken action to provide help. I have increased the national living wage and the national minimum wage to their highest rates ever, frozen prescription charges for two years in a row, and frozen rail fares for the first time in 30 years. I have also taken £150 off energy bills, which contributed to last month’s fall in inflation. However, I want to go further, and today I am taking further action to ease the burden on family finances.

First, on fuel duty, I have already extended the 5p cut twice since the election. I can confirm today that there will be no rise in fuel duty this year, recognising the pressure that the war has put on fuel prices.

Secondly, I know that the cost of the weekly shop is often one of the biggest worries for families, so last month I met supermarkets to urge them to do all they can to keep prices low. Today I am taking action by suspending tariffs on over 100 different foods sold in supermarkets. I am clear that I expect supermarkets to pass those savings on in full to their customers.

Thirdly, I will not tolerate any company exploiting the current situation to make excess profits at consumers’ expense. As such, I am bringing forward tough new powers so that the Competition and Markets Authority and other regulators can take action when firms break the rules.

Fourthly, for many families, driving is not always an option. Buses are the most popular form of public transport in Britain, with over 4 billion journeys made last year. I have already extended the £3 bus fare cap to March 2027, and today I can confirm that bus travel across England will be free for children aged between five and 15 throughout August.

Finally, I recognise that what matters for families is not just getting by, but being able to enjoy time together without worrying about the next bill. That is why I am launching the great British summer savings scheme, to help families and to support our hospitality sector. I can today announce a temporary cut in the rate of VAT on summer attractions from 20% to 5% over the summer holidays. This will apply to ticket prices for both adults and children, covering attractions such as fairs, theme parks, zoos and museums. It will include children’s tickets for cinemas, concerts, soft play and the theatre, and it will also cut the cost of children’s meals in restaurants and cafés from 20% VAT to 5%. These changes will apply across the UK from the start of the Scottish school holidays on 25 June and will run until the end of the school holidays in England, Wales and Northern Ireland on 1 September.

This Government have the right economic plan. We promised to grow the economy, and we have. We promised to cut inflation, and we have. We promised to cut the cost of living, and we are—promises made by a Labour Government, promises delivered by a Labour Government. I commend this statement to the House.

I call the shadow Chancellor.

I thank the Chancellor for advance sight of her statement—although the press, of course, got even more advanced sight of it.

The decision taken to cancel the increase in fuel duty is welcome—it has been a long time coming. The Conservative party has been campaigning against the fuel duty rise for months, but the Chancellor has defended that policy repeatedly, leaving motorists and businesses worried about even higher fuel prices in September. It was always obvious that the fuel duty increase would need to be cancelled—obvious to everyone except the Chancellor. Why did she fight us on fuel duty for so long? Why has she been so hellbent on raising fuel duty during an energy crisis?

Well, the inevitable U-turn has finally come, but it is astonishing to hear the Chancellor claiming that the Government can afford to help households because the forecasts have improved. Is she seriously suggesting that the economic outlook is now better than at the time of the last fiscal forecasts when we have had the Iran conflict, to which our economy is highly exposed thanks to this Government’s ruinous choices? The Chancellor has just pointed to the IMF forecast being upgraded this week. Let us be very clear about what is going on here: the IMF adjusted its growth forecast for this year up slightly to 1%, but until April it was forecasting 1.3%. Where exactly is the supposed growth dividend? Will the Chancellor directly address that point?

This is exactly the same game that the Government played last year when they U-turned on cuts to the winter fuel payment. They claimed then that they were U-turning because the economy was improving when, of course, they were doing it due to political pressure. Nobody bought it then and nobody is buying it now. Once again, we have a weak Government caving in to the inevitable after spending months defending a truly terrible decision.

The Chancellor claims that the measures announced today will be funded by a number of different tax measures, but most of the ones she mentions are already in place and baked into the OBR’s forecasts. Given that the Chancellor has not announced any measures to control Government spending, will she confirm that, in fact, the measures that she is announcing today will be funded, at least in part, by yet more Government borrowing? Will she also confirm whether fuel duty rates will still rise to the same level as previously planned after December, or will today’s announcement mean a permanent reduction in fuel duty?

Although we in the Opposition welcome some of the measures that the Chancellor has taken today, such as the increase in mileage allowances, it is all very minor compared with the inflation this Government have fuelled since coming into office and the tax rises that the Chancellor has imposed. Today’s announcements will bring little comfort to the hundreds of thousands of people who have lost their jobs, the countless businesses that have folded and the high streets that are now hollowed out. The reality is that we are in a terrible position to deal with the consequences of the latest energy crisis, thanks to the actions that this Government have taken.

The Chancellor claimed that growth is up; it is actually down. She claimed that borrowing is down; it is 75% up compared with the plans that she inherited. She claimed that she is fighting inflation; we have the highest inflation in the G7. She claimed that she is cutting energy bills; energy bills have gone up under this Labour Government. And of course, she did not mention unemployment.

On energy, this Government have made a conscious decision not to exploit our own natural resources in the North sea, weakening our economy and our energy security while importing oil from Putin’s Russia at the cost of Ukrainian lives. Families and businesses are facing rising costs and rising taxes. People are losing their jobs. The country is hurting. If the Chancellor were serious about the challenges we face, she would commit to getting spending down, tackling the benefits bill and getting taxes down to strengthen our economy. Yet thanks to the Chancellor’s mistakes and the weakness of this dying Government, today’s statement is all we get. Does the Chancellor really think that that is enough?

Let me take the issues that the shadow Chancellor has raised. On fuel duty, when I became Chancellor of the Exchequer, the freeze in fuel duty was due to expire, under the plan set out in the Conservatives’ final Budget, within a matter of months. I have frozen fuel duty twice already and I have frozen it again today; indeed, I have frozen it with more than three months to go before the increase was due to happen, giving people plenty of time.

I have always said, since the middle east conflict began, that I would keep an eye on what was happening to oil and gas prices and set out plans ahead of the change due to come into effect in September. That is exactly what I have done. I have also gone further in three specific areas, with additional support for hauliers, additional support for red diesel—particularly helping the rail freight industry and farmers—and the higher mileage rates. The shadow chancellor says he welcomes the changes on mileage rates. It is the first time they have been increased since 2011, so if he welcomes them so much, why did the Conservatives not increase them when they had 14 years in government?

On the Iran conflict, let us remember that this is a war that the UK did not start and this Government chose not to join, whereas the Conservatives and Reform were cheering on the conflict every step of the way. The impact on the UK and global economies would be much more severe if we had heeded the pleas of Reform and the Conservatives to join that conflict.

The shadow Chancellor talks about inflation and growth. Yesterday, the numbers showed that inflation had fallen; we are the only country in the G7 where inflation fell last month. The IMF has revised up our growth forecast and we had the fastest growth of the G7 in the first quarter of this year. The shadow Chancellor asks whether that will be paid for with new borrowing. No, it will not. If he had been listening, he would have heard the changes we are making around the foreign branch exemption. That will raise hundreds of millions of pounds a year, which is why we are able to afford the package that we have announced today.

The shadow Chancellor mentioned high streets. Because of the Pride in Place money that I announced at the Budget, the banking hubs and the changes that we made to business rates, which have seen those rates for retail and hospitality come down significantly compared with the plans we inherited from the Conservative Government, we can reinvigorate our high streets.

The shadow Chancellor mentioned borrowing. Borrowing has fallen below 5% for the first time since 2019 because of the actions that I have taken as Chancellor. Borrowing is expected to fall in every year of this Parliament—very different from what happened under the Conservatives. Employment and activity remain in the top half of the OECD and the G7. The biggest benefits boom came under the last Conservative Government, when the shadow Chancellor was the Work and Pensions Secretary.

Oil and gas will play an important role in our economy for many years to come, but we also need to invest in renewable energy, which is why we announced yesterday restrictions in the number of judicial reviews, which are holding up investment in clean energy. It is a shame that the Conservatives voted against our Planning and Infrastructure Act 2025 and it is a shame that the Liberal Democrats abstained on it. We are determined to get Britain building, including building the energy infrastructure we need to get bills down.

Just a couple of weeks ago, I announced changes around tie-backs to make it easier for oil and gas companies to exploit their reserves of oil and gas in the North sea. Jackdaw and Rosebank would have gone ahead if it had not been for the last Government messing up the way they legislated. We will shortly announce the decisions, which the Secretary of State for Energy and Net Zero will make. I am very clear that oil and gas will play an important role in the UK for many years to come, adding to our energy security alongside investment in nuclear, small modular reactors, floating offshore wind and onshore wind and solar, opposed by the Conservative party.

I call the Chair of the Treasury Committee.

It never fails to amaze me that the shadow Chancellor tries to lecture this Government on inflation when many of us were here in September 2022 when the Conservative party crashed the economy. I welcome my right hon. Friend’s interventions. I am particularly interested in the cut in VAT in the leisure sector, and I hope that she will commission a full study from the Exchequer Secretary to the Treasury about the impact, because it could be a great way to fuel, promote and keep our stretched leisure and hospitality sector going. Will she commit to that?

I agree with my hon. Friend that we will take no lessons from the Conservatives on inflation, when it reached more than 11% when they were last in office. On VAT in the leisure sector, we are making the changes from 25 June right until 1 September to help boost the hospitality sector but also, crucially, to help families during the summer. Our expectation is that this will cost taxpayers money, but it is funded through the changes that we are making around the foreign branch exemption, so companies cannot book losses overseas to avoid paying their fair share of corporation tax here in Britain.

I call the Liberal Democrat spokesperson.

I feel as though we are slightly through the looking glass. For six months, we Liberal Democrats have been calling for an emergency temporary VAT cut for hospitality, leisure and attractions, and our pledge was fully funded. For weeks, we have been calling for an emergency transport package, fully funded using the additional revenue from higher VAT rates and the EPL. All that time, we were told repeatedly that it was impossible to do those things and there was no additional money. Somehow, with the prospect of a by-election in Makerfield and the Prime Minister’s political life being on the line, the money has been found.

Let me ask the Chancellor two questions. First, I genuinely welcome the Government’s focus on the cost of food, which is of huge concern to the constituents of Members of all political parties. However, is there any risk that short-term gain might result in long-term pain? In looking at the tariffs, has the Chancellor had any conversations with the food manufacturing industry about whether it can remain competitive? Does removing the tariffs inadvertently risk undermining our food manufacturing sector? If there is a risk, will she look at our plans for a good food Bill and for promoting nature-friendly farming? I ask that question in the spirit of constructive opposition.

Secondly, the Chancellor and her Ministers will know that we are due to have a very hot summer. That means huge demand for outdoor attractions, because children will want to be outside in the hot weather. Indoor attractions, such as soft play centres, will not benefit so much, because there will not be much demand for them in the summer months, but there will be in the winter months. Will the Chancellor look carefully at the differences within the sector? Children are priced out of play when they need to go indoors in the winter months, but not so much in the summer months.

I thank the hon. Lady for those questions. I am not sure whether she welcomes the changes around the foreign branch exemption, which is what will pay for the policies announced today by ensuring that companies pay their fair share of tax in the UK. Unless we can say where the money will come from, all that results is higher inflation and interest rates in the future. That is why I have always been clear that everything I will announce will be fully costed and fully funded.

On food, the hon. Lady cannot both say that she welcomes help with the cost of living, and then be a bit uncertain about tariff reductions. We have focused the tariff reductions on food products and agrifoods that we do not produce in significant quantities in the UK. We work very closely with the Department for Business and Trade in identifying those sectors.

On indoor and outdoor summer activities, I have had enough family holidays in the UK to know that there are plenty of days when it rains. I am sure that the leader of the Liberal Democrats, the right hon. Member for Kingston and Surbiton (Ed Davey), will be visiting a soft play centre soon.

I declare an interest as chair of the all-party group on ceramics. I thank the Chancellor for today’s announcement, and the Secretary of State for Business and Trade and the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Stockton North (Chris McDonald) for their support. This is a big step towards support for a sector that offers so much to this country. I thank Sharon Yates and Finbar Bowie from the GMB, as well as Rob Flello and Hannah Ault from Ceramics UK, for their leadership in this matter.

May I extract from the Chancellor a commitment that this is the next stage of a new partnership between the UK Government and UK ceramics? Today’s announcement will absolutely help us survive, but with more working together, we can thrive as a sector and do our bit to boost exports, boost growth and create well-paid, unionised jobs in this country.

I pay genuine tribute to my hon. Friend for his work on behalf of businesses and working people in his constituency, to the other Stoke MPs, and to my hon. Friends the Members for Newcastle-under-Lyme (Adam Jogee) and for Amber Valley (Linsey Farnsworth). They have made the case powerfully and convincingly. I absolutely commit to working with Ceramics UK, the GMB, the MPs and the wider sector to ensure that the ceramics industry thrives in the UK.

On tariffs, I want to explore what the Chancellor said about “significant quantities”, because a significant quantity for a supermarket can be of a completely different scale from a significant quantity for a small South Shropshire farmer. Will the Chancellor guarantee that no South Shropshire farmers will be undercut by the measures on tariffs, and that none of the supermarkets will pass on the cost cuts to British farmers?

It is important that we help our constituents with the cost of living. The tariff reductions that I have announced today will save the British shopper £700 million. That is a significant reduction in the cost of the weekly shop for families across our country. We have chosen the tariff lines carefully. The full details will be published, and we will consult over the next week or two to ensure that we get them exactly right, but we have worked hard to make sure that the reductions do not affect British farmers. That is why we are also helping British farmers with the changes we have made on red diesel.

I welcome my right hon. Friend’s statement, which is great news for the cafés and restaurants in my constituency, of which there are many, and for the very many showmen and women who run Scotland’s and Britain’s great fairs. I note that the Conservative party objects to all this, but it is the Conservative party that left us with debt to GDP of almost 100%. There is nothing progressive in running debt levels like that, and the Chancellor is right to focus on paying that debt off.

Many of my Glasgow East constituents rely on cars and vans to get to work and do their work. They face extortionate charging for parking in town from the SNP council, which is utterly anti-car, and regular bills for repairing their cars and vans from all the potholes. Will my right hon. Friend set out how she is helping hard-pressed car and van drivers in Glasgow?

My hon. Friend is absolutely right that there is nothing progressive about piling up the debt that future generations will have to pay; that is why our fiscal rules are getting the debt and deficit down while enabling us to invest in our country’s infrastructure and public services. On helping people with the cost of driving, we have frozen fuel duty until the end of this year, but recognising that some people rely on their cars and vans more than others, we have also taken off the HGV tax for this year, saving HGV drivers up to just over £900 a year, and cut the duty on red diesel by more than a third. We have also increased the tax-free mileage rates to help the employed and the self-employed with the cost of fuel.

The announcement on red diesel will be welcomed by my farming constituents, who will await the details on the tariffs the Chancellor has cited with a great deal of interest and a certain amount of trepidation. Does she acknowledge that a third of the world’s fertilisers pass through the strait of Hormuz, and that the increase in the price of fertiliser is bound to have an impact on British agriculture and therefore on prices in the shops? What will she do to relieve some of that—in some cases existential—pressure on farms in the United Kingdom?

I thank the right hon. Gentleman for that question. I urge him and businesses and farmers in his constituency to look at the list of products and feed into the consultation over the next week or so. We are keen to bring the tariff reductions into effect to reduce prices in shops for all our constituents, but we want to do so in a way that is respectful of British farming. That is why we have chosen the tariff lines that we have. As he recognises, we are doing more to support farmers with the reduction in duty on red diesel.

The best way, though, that we can help all our constituents, the farming sector and others is to bring the conflict to an end and reopen the strait of Hormuz. That is why the Prime Minister and Foreign Secretary are working intensively with international partners to do just that, while at the same time we are working to diversify our supply of oil and gas so that fertiliser, to which the right hon. Gentleman rightly refers, is still available for our farmers.

I thank the Chancellor honestly for her statement. As she has mentioned, and as many Members of this House will be aware, I have been campaigning hard for the ceramics sector with a view to saving Denby Pottery. I thank the Ministers in the Treasury and the Department for Business and Trade for their ongoing engagement through the many meetings we have had on this. I am delighted to hear about the £120 million support package. It is a clear indication that the Government are supporting and backing UK ceramics, and it will make Denby Pottery a more attractive prospect for any potential investors. Given the circumstances currently facing Denby Pottery, can the Chancellor commit to ensuring that the funding is available as soon as possible, in the hope that Denby can be saved?

I thank my hon. Friend for the work she does on behalf of all her constituents, particularly those impacted by what is happening at Denby. It was my privilege to come to Amber Valley with her last year to meet businesses across her constituency. We are backing UK ceramics. We want to find a future for Denby, and we will continue to work with my hon. Friend to achieve just that.

I remind the House of my entry in the Register of Members’ Financial Interests. Last year, suckler beef farmers in my constituency were getting paid £7.30 per kilo for their finished product on the hook. Yesterday that was down to £5.75, and it is still falling. The price paid to dairy farmers for their milk is through the floor. Arable farmers are struggling after two catastrophically bad harvests. The red diesel duty cut is welcome, but it will not help farmers who are struggling with rocketing fertiliser prices or, indeed, those who are required to heat glasshouses. Opening the door ever wider to food imports risks undermining domestic food production. If food security genuinely is national security, surely our food producers and manufacturers should have access to the same support as other critical sectors. Will the Chancellor look again at adding food and drink to the Government’s industrial strategy, so that they can access the same support as other sectors?

I know that, as Chair of the Environment, Food and Rural Affairs Committee, the right hon. Gentleman will play a key role in scrutinising what the Government are doing. The reduction of more than a third in the rate of duty on red diesel will have an immediate and important impact on the costs for farmers. I also appreciate the fact that his party, like the Government, did not support the conflict in the middle east and recognised that it was a mistake that would have an impact on businesses here at home. That is why we are doing everything within our power to reopen the strait of Hormuz, to ease these pressures on consumers and businesses, including farmers, but also in the meantime to diversify supply and open up new refining facilities in the UK, to help businesses, including farmers, during these challenging times.

The Potteries welcome this statement. I have been working with local companies, the TUC, GMB and research organisations to develop proposals to support the ceramics industry to innovate, improve energy efficiency and decarbonise. I have previously called on the Government to release an industrial energy innovation fund for energy-intensive industries, with Government grants to explore process efficiency and new technologies, as well as vouchers to access shared pilot facilities. Could the Chancellor clarify whether part of the £120 million of funding announced today could be used by ceramics companies to access and invest in innovations such as AI-enabled process optimisation and energy technologies, to help reduce energy bills?

I thank my hon. Friend and all the MPs involved in helping to put together this scheme of support for ceramics. Like her, I welcome the work of the TUC and GMB in this. Innovation and ensuring that the industry is sustainable and competitive for the future is absolutely essential. This is not just a sticking-plaster policy; it is about setting up the industry for the future, including investment in innovation and R&D and also the diversification of energy supplies.

The UK is losing 1,000 oil and gas jobs a month. The Chancellor is aware of that, and we have made it very clear to her that we are keen to move to the oil and gas price mechanism as soon as possible—we urge her to do that. On the foreign branch profits announcement today, have the Government modelled the job losses that may occur as a result of this change in the oil and gas taxation regime? Can she tell the House how many jobs might be lost as a result?

As I have said in previous answers, I recognise the role of oil and gas in the UK and its importance to the UK for many years to come, which is why we have changed the rules around tiebacks and put in place a permanent mechanism for taxing windfall profits. But the hon. Lady has to answer the question: are she and her party in favour of the foreign branch profits exemption or not? If not, they cannot back the support we are giving today to help people with the cost of living and the support we are giving for ceramics. This exemption means that we are moving in line with how other countries treat foreign profits. At the moment, we have the absurd situation where losses overseas can mean that businesses avoid paying their fair share of corporation tax in the UK. This moves us in line with what other countries do. It is closing a tax loophole, and the hon. Lady and the Conservatives should welcome that.

I thank my hon. Friend for that question, and I say to Mrs Williams and all those who work in the ceramics sector: I am proud to be the Chancellor who is backing British industry and British jobs.

Back in March, the Chancellor announced the £50 million crisis and resilience fund to help families with the price of heating oil, which is a big issue in rural constituencies such as mine. Does she have any plans to extend or repeat that scheme come the autumn, given that we are likely to have a similar crisis with the strait of Hormuz still shut? To what extent will the Russian oil that will come via a third country under commodity code 2710 form part of the fuel mix?

Yesterday, we introduced the toughest set of sanctions on Russia that this country has ever had, but like the previous Government, we are phasing those in so that they do not have a disproportionate impact on industry here in the UK. That is what the previous Government did, and that is what we are doing as well.

The hon. Gentleman mentions support for people with the cost of heating oil. We were pleased to be able to introduce targeted support in areas that are particularly dependent on heating oil. We are doing a piece of work at the moment to see how much money has been used by local authorities—some have been more proactive than others in ensuring that local residents get support—and once we have completed that, we will look at whether and what further support is needed.

I welcome the statement and the action that those of us in ceramic communities have been calling for, and I thank the Chancellor for announcing it. This is a good day for all of us in north Staffordshire. As it happens, staff from a ceramics business based in Newcastle-under-Lyme are sitting in the Gallery watching this statement; I welcome them. Can the Chancellor assure us of two things: first, that the eligibility for the support in this scheme will be as wide as possible, and secondly, that it will be as easy as possible to apply for?

I am pleased to know that staff from a business in the ceramics sector in Newcastle-under-Lyme are here today, and I say to them directly: this Government have got your back and want to work with you and the trade unions that represent people in the sector to ensure that the ceramics industry plays an important part in British life—particularly in the pottery communities —for many years to come. Of course, we will set out the details of the scheme, but like my hon. Friends who represent these communities in Stoke, Newcastle and Amber Valley, this Government are very keen to crack on with the scheme and make sure that businesses can get the support they deserve.

Will the Chancellor expand on her discussions with the supermarkets and their role in keeping prices down? When the supermarkets make special offers or reduce prices, there is always a concern that rather than absorbing the costs themselves, they pass them on directly to farmers and their suppliers, who are not in a position to absorb them because of their fixed production costs.

The right hon. Gentleman makes a really important point. Today I have set out a number of measures that will directly help the supermarkets to reduce their costs, and it is really important that those cost reductions are passed on directly to consumers. Reducing the cost of running an HGV will have a direct impact on our supermarkets, and reducing tariffs will have a direct impact on costs for our supermarkets. The trade deal that we are looking to do with the EU to reduce the costs of importing exporting food from the EU will also have a direct impact on costs for supermarkets. I say to the supermarkets: those cost reductions must be passed on directly to consumers, who are struggling with the cost of living, given the conflict in the middle east.

I thank the Chancellor for her statement, and particularly her VAT cut on theme park tickets. I invite her and all hon. Members to join me on my annual trip to Alton Towers this summer. Erewash has many great summer events for families to enjoy, such as Long Eaton carnival, the classic car show and the Glow festival in Ilkeston, but entertaining kids during the summer months can be daunting and expensive for parents. Can the Chancellor please elaborate on how the measures that she is announcing today will support Erewash families and boost great community events?

My only worry with this package is that it will mean children badgering their parents even more for days out over the summer—I slightly worry about what I have unleashed in my own household. I am pleased to announce today that trips to Alton Towers and other activities, whether it be soft play, funfairs, zoos or museums—if many kids want to go to them; not mine probably, sadly—will be cheaper this summer because of the action that this Government are taking.

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?

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.

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?

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.

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?

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.

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?

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.

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?

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.

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?

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.

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.

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.

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?

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.

Diolch yn fawr iawn, Dirprwy 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?

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.

I thank the Chancellor for her statement, which is welcome for those of us who are serious about buying British, building British and backing British. Will she say a little more about how she believes the measures will help the British brickmaking sector, a subject that I know Madam Deputy Speaker will also be interested to hear about?

I thank my hon. Friend for her question and for always standing up for the people of Stafford, whether by supporting bringing a market back to the town or supporting the brickmaking sector. This Government are investing £120 billion more in capital spending during this Parliament, compared with the plans that I inherited from the previous Government. I am determined that that money is spent here in Britain—whether on defence, energy, transport or building schools and hospitals—creating good jobs, paying decent wages, supporting British industry and supporting British workers.

Food inflation is forecast by the Food and Drink Federation to reach at least 9% by the end of this year. Energy costs are driving up food inflation, as are a lot of the other anti-business policies put forward by this Government, including not incorporating food manufacturing in the industrial strategy. When will the Chancellor realise that announcing things like capping supermarket food prices is just like flower arranging while the roots of the flower are dying?

The hon. Lady says that we should extend the industrial strategy, but the previous Government did not even have an industrial strategy. I would say that a £700 million tariff reduction is not exactly fiddling at the margins; supermarkets should pass on those cost savings directly to consumers to help all our constituents with the cost of living.

I congratulate the Chancellor on her summer package of savings for families—it will give relief to those families who have booked domestic holidays, and a welcome boost to our domestic leisure and entertainment industries—but will she say a little bit more about how we intend to pass on the savings made by her tariff cuts through supermarkets? Too often, they have taken a cut and a slice off the reduced cost to them, so how do we ensure that all the savings get passed on to our constituents?

I remember that, when I was young, I used to enjoy visits to Chislehurst Caves and Eltham Palace, and I hope they will be able to benefit from the changes I have announced today. It is important that we ensure that supermarkets pass on these cost reductions to their customers. We are also making changes to HGV duty, which will reduce costs for supermarkets. It is important that Supermarkets recognise the pressure that their customers are under at the moment. We have provided additional powers to the Competition and Markets Authority to ensure that no business, whatever its size or nature, takes advantage of the conflict in the middle east to hike prices for their customers.

Youth unemployment is now at 5%. On current form, it will rise to 5.8% by next year, which will mean a very large number of young people without work. What actions can the Chancellor take to ensure that young people get access to jobs and careers, and do not have the deeply depressing experience of being unemployed when they leave school, college or university? A disproportionate number of young people rent in the private rental sector, so will she also do something about bringing in much needed rent regulation in the private rental sector?

We have already increased the number of apprenticeships, and changes to the growth and skills levy mean that young people do not always have to have maths and English at grades A to C to get on to an apprenticeship programme. We have also introduced shorter apprenticeships to help young people to get the skills they need. On private rent, the right hon. Gentleman might have seen the changes that we made through the Renters’ Rights Act 2026, which gives renters the greatest rights they have had in a generation, including the right to challenge a rent increase and to have only one rent increase a year. If someone challenges their rent increase and takes their case to a tribunal, they will not have the rent increase during the course of the tribunal, helping to limit rent rises for hard-working families.

I thank the Chancellor for this wonderful set of measures. I will go one further than my hon. Friend the Member for Erewash (Adam Thompson), who is no longer in his place, and invite her across the bridge to some of the greatest attractions in the UK, ranging from the London Eye to the Southbank Centre, the London Aquarium and even the Paddington Bear Experience, which will all benefit from this wonderful VAT cut. We have been raising this issue for many months, so it is good to see action.

This morning, I visited John Ruskin primary school in Camberwell in my constituency. We might think that the impact of what is happening is not affecting young children, but it is. The children there were so articulate, raising questions on oil and gas prices and prices in the supermarket, so I thank the Chancellor for addressing the issues. How will the CMA monitor supermarkets? It is a non-ministerial organisation, but will it be providing regular updates to the Treasury, so that we can ensure that price cuts are being passed on to hard-working families?

I can confirm to my hon. Friend that the London Eye will be included. Apparently it is called an “observation attraction”—the Exchequer Secretary to the Treasury and I made sure that such attractions are part of the package of measures. I totally agree with what she says about young children of primary school age having a deep understanding of the cost of living pressures faced by their families and carers at the moment. That is why it is so important that today’s measures particularly address the cost of the summer holidays for parents. I know that parents, whether in Vauxhall or in my own constituency of Leeds West and Pudsey, are not always as excited about the summer holidays as their children are because they are worried about the costs. I hope that the measures that I have announced today on the cost of children’s meals in restaurants and cafés, and to reduce the cost of days out, will go some way towards helping families to have a better summer.

I welcome my right hon. Friend’s announcement, but I ask her to look further at introducing a package of emergency measures to keep down energy bills in a number of ways, including through an essential energy guarantee for all households, a nationwide social tariff and extending the windfall tax on the energy sector’s excessive profits.

When I became Chancellor, I extended the energy profits levy on gas and oil to 78%. We will be able to bring in money as a result of that. We have also increased the electricity generator levy by 10 percentage points to help to decouple gas and electricity prices. Because of the measures I took in my Budget last year, I was able to take £150 off people’s energy bills. I recognise the impact of the cost of living on families, pensioners and businesses, which is why I have introduced a further range of measures today, particularly targeting and helping families, energy-intensive industries, and those who drive a lot for work.

I thank the Chancellor for her statement and welcome the measures she has announced, which will have a huge impact and support many of my constituents and businesses in Battersea. She is very welcome to visit Battersea; we have wonderful hospitality there.

As we live in an increasingly unpredictable global landscape, it is vital that we work with some of our closest allies. That is why I welcome the European partnership Bill announced in the King’s Speech last week. Will the Chancellor continue to explore ways to strengthen our economic relationship with the EU as a means of promoting stability and security, particularly in the light of the current financial pressures as a result of the Iran war?

The measures I have set out in my statement will absolutely help the hospitality and entertainment sectors in Battersea, whether zoos, cinemas or restaurants. My hon. Friend is right to point to the economic benefits—reducing inflation, and boosting jobs and growth—of a closer relationship with our nearest neighbours and trading partners in the EU. That is why we are currently negotiating an ambitious agreement to reduce the costs of bringing in agricultural, food and farming products from the EU, and increasing markets for British farmers in the EU. That is alongside a youth mobility scheme, Erasmus, and energy trading and electricity trading across the European Union.

I welcome the measures that the Chancellor has set out, particularly those that will help small businesses such as Noted Eel & Pie House in Leyton, Homies On Donkeys in the ’Stone, Bare Brew and City Place in Wanstead, and Fresh as a Daisy in South Woodford. I look forward to seeing their children’s menus, so that families can benefit from the measures she has set out. What more is she doing to support hard-pressed families in Leyton and Wanstead, particularly those who rent in the current cost of living crisis?

I very much hope that families and businesses in Leyton and Wanstead can benefit from the changes that I have set out today. I know that the cost of renting is very high, especially in London, and the Renters’ Rights Act should give greater certainty and stability to renters and limit rent increases. In addition, families in Leyton and Wanstead will benefit from the offer of 30 hours of free childcare, the abolition of the two-child limit on universal credit and the roll-out of free breakfast clubs to primary schools. From September, straight after the summer holidays, all children whose parents or carers are on universal credit will benefit from free school meals.

I am proud that this Government are backing British industry, from ceramics to British steel, in today’s announcement. Will my right hon. Friend look at possible measures to support the UK wood and timber sector? It is facing challenges such as price volatility, rising costs, supply chain pressures and missed targets for productive tree planting.

The measures announced today will help ceramics and the chemicals sector, but other schemes, such as the supercharger scheme and the British industrial competitiveness scheme, will benefit other sectors across the economy. I am sure that the relevant Minister would be happy to meet my hon. Friend specifically to discuss wood and timber issues.

I declare an interest, as someone who worked for Unison immediately before coming to this place; its contribution to my campaign is included in my entry in the Register of Members’ Financial Interests. I worked as a trade union official for more than 20 years, representing public sector workers. One issue that came up in pay negotiations year after year was mileage rates, particularly for frontline social care workers. As the cost of living and fuel prices rose, frozen mileage rates effectively imposed a stealth cut on workers who were already delivering vital public services. On behalf of those workers and the thousands of frontline workers across Scotland, may I warmly welcome the Chancellor’s decision and announcement today? Will she confirm that she has spoken with her counterparts in the new Scottish Government to ensure that the levers of power over which they have control are similarly focused on cutting the cost of living for my constituents?

The increase in mileage rates for employed and self-employed workers will have a material effect on those who need to use their car for work every day; it is, of course, the first increase since 2011. Alongside the Employment Rights Act, this is giving greater rights, greater certainty and greater incomes to ordinary working people. I pay tribute to the trade union Unison for its lobbying and work on this issue over many, many years.

Families in Bracknell Forest often tell me that the schools holidays can be bittersweet; the opportunity to make treasured memories and spend time with their children must be balanced against having to juggle childcare and work, as well as the cost of living pressures that come from keeping their children entertained. The measures VAT cuts for summer attractions that the Chancellor has announced today will therefore make a real difference. May I ask her to encourage people across the country to make use of the fantastic leisure facilities in Bracknell Forest, including the Look Out Discovery Centre, South Hill Park and Play World soft play, as they take advantage of this new scheme?

I hope that families in Bracknell, whether they are enjoying a day out in Bracknell Forest or going on a summer holiday to one of the great seaside towns across our United Kingdom, will benefit from these changes. They will make lunch or dinner out as a family, and entertainment, a little bit cheaper. If parents or carers are on universal credit, when their kids go back to school in September—whether they are in nursery, primary, secondary or further education—they will benefit from free school meals.

I thank my right hon. Friend for her statement, especially the measures to support farmers and hauliers. Banbury has a thriving logistics sector, with brilliant businesses like TWE Haulage; I visited that company last month, and I know it will really welcome the measures that she has announced. Will she and her colleagues continue to keep under review the particular pressures on the logistics sector and be open to any further measures that may be needed?

The best way to reduce cost pressures on families and businesses is to get the strait of Hormuz reopened and those vessels carrying oil and gas flowing again, but of course in the meantime I will keep under review the support necessary to support businesses and families in Banbury and across the country.

I welcome the tone of yesterday’s announcement at the petrol pump and today’s announcement in the House. The Government are fighting for working people every day. Is ice skating included in the measures? Alexandra Palace has the most fantastic ice skating rink. I hope that ice skating is included, so that children visiting London, as well as London children, can enjoy slightly cheaper ice skating this summer, with a lovely meal to boot.

I will have to check about ice skating. I like to pride myself on being on top of my brief, but I do not know whether ice skating is included. I did, however, know about the London Eye.

Following a successful sale to the LB Group, chemicals firm Tioxide is planning to reopen its Greatham plant in Hartlepool. The £350 million critical chemicals resilience fund is a real boost, at exactly the right time, for that Hartlepool employer. Can the Chancellor say a little more about how the fund will promote jobs and growth in Hartlepool?

Businesses in Hartlepool and across Teesside will be among the biggest beneficiaries of these changes around chemicals. The Minister for industry, my hon. Friend the Member for Stockton North (Chris McDonald), is now in his place, and I pay tribute to him again for his help in setting out this package of measures. The Department for Business and Trade will shortly set out the details of the chemicals scheme, but I can assure my hon. Friend the Member for Hartlepool (Mr Brash) that it includes help with capital and day-to-day costs, with the aim of making the sector more sustainable and less energy intensive in the future. That will make it increasingly competitive. We recognise the chemical sector’s important role in the UK, and we are determined to ensure a bright future for it.

I, too, thank the Chancellor for her statement, and in particular the announcement of the £350 million chemicals resilience fund. As a consequence of the Iran war, energy price rises of 16% and food price rises of up to 7% are predicted by the Bank of England. I very much welcome the Chancellor’s addressing the cost of living crisis, and the steps to help families this summer, including with bus fares for children; that will be welcomed in Middlesbrough and Thornaby East. We will no doubt monitor and evaluate the dividends of that travel offer. Will the Chancellor consider whether the long-term free travel initiatives elsewhere in Europe have translated positively into economic engagement and growth, and whether they could be replicated here? Given the cries from the retail sector this week, can she advise on what a voluntary pricing arrangement on core items in a basket of supermarket goods, as introduced in France in 2023, might do for living standards?

Businesses in the chemicals sector in Middlesbrough will benefit from these changes. In today’s package, a lot of the focus was on food costs, be it the cost of kids’ meals in restaurants and cafés or the reduction in tariffs, and on support for transport, whether people are travelling by car or by bus. We recognise that increases in essential costs are the ones that families fear most. We will of course monitor the impact of these measures. We expect the range of measures that I have set out today to have a cost to the Exchequer, and that is why I have also set out the foreign branch exemption changes, to ensure that all businesses pay their fair share of tax.

On supermarkets, which my hon. Friend mentioned, the Co-op announced last November, on the back of my Budget, that it was cutting the cost of 1,000 products because of the beneficial impact of the changes to business rates. Last week, the Co-op froze the price of more than 40 essential products, and it has committed to working to keep them down. I welcome those measures by the Co-op. I hope that other supermarkets heed the calls of their customers to keep prices down; and I hope that they take advantage of what I have set out today to reduce their costs, and pass those savings directly on to consumers.

Order. I will try to get all Members in, but I encourage them to ask very short questions. There are two more statements and the main business to come this afternoon, and we are getting a little tight on time.

I welcome this announcement and the Chancellor’s statement. It means that, thanks to this Labour Government, it will be cheaper for families across my community to go to theme parks, farms and soft plays this summer. I will see them there, because my children have a long list of places they want to visit. On days out, our families get to choose between eating out or taking a good old picnic. Can the Chancellor bring to life the decision that she has made today? How will it ensure that families have full tummies, as well as lots of fun and excitement, this summer?

We are helping to keep prices down in the supermarkets, and to reduce the cost of lunch at a café or restaurant when families have a day out. Having met my hon. Friend’s kids out on the campaign trail in Aldershot, I think that a couple of days out not delivering leaflets would be very much in order.

I congratulate the Chancellor on this ambitious and comprehensive package of measures, supporting families across Bolton West. As a long-standing proponent of a fairer taxation system, I thank her for the measures she has put forward to close the tax loopholes that have been used by oil and gas firms to structure their affairs and avoid paying hundreds of millions of pounds into the Exchequer. That money will finance this package of proposals to support families. She mentioned the Competition and Markets Authority. Can she say a little more about what engagement she envisages having over the coming months to make sure that we do not see profiteering, going forwards?

Closing tax loopholes has been a feature of the first two Budgets I have delivered as Chancellor—for example, the loophole whereby private schools did not pay VAT or business rates. I increased the energy profits levy and the tax on private jets, and there has been a range of other measures to ensure that those with the broadest shoulders pay their fair share of tax. The Competition and Markets Authority is already, at my behest, carrying out a review of heating oil to make sure that customers using heating oil are treated fairly. We are introducing the fuel finder to ensure that customers can always get the best deal when filling up their car with petrol.

I thank my right hon. Friend for the package of support she has announced today. She knows at first hand that hospitality is what my little town does best. My hospitality industry, fairground and constituents will be very happy today. Can she clarify, as I am not sure, whether the 15% VAT cut applies to all restaurants, café, pubs, bars and hotels serving children’s meals? Will she please keep under review the possibility of extending this welcome VAT cut to the hospitality industry as a whole?

I have happy memories of having fish and chips with my hon. Friend in her constituency several years ago. I can confirm that the VAT for children’s meals, be they in a pub, hotel, restaurant or café, will be cut from 20% to 5% between 25 June and 1 September. We will monitor the impact of that on tax revenues, and the number of people going out for dinner. We envisage that this measure will have a cost to the taxpayer, which is why we are funding it by ending the tax loophole whereby some companies were using losses overseas to offset their corporation tax here in Britain.

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. All those actions will be greatly welcomed by families worried about the impact of the Iran war on household finances. 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?

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. All these things are unlimited; people can go on a bus as many times as they like, and they can take their kids out for a meal and benefit from that reduction in VAT as much as they like. We want people to have an enjoyable summer, worrying less about the costs and thinking more about making happy memories.

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. I am sure she will agree that Blackpool has some of the best attractions in the world, including the best theme park in the United Kingdom, Blackpool Pleasure Beach, which is today launching its record-breaking £8.7 million new ride, Aviktas. 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, and the potential that we have?

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. I do not eat only fish and chips, but I remember a very happy meal of fish and chips in my hon. Friend’s constituency during his by-election campaign.

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? It will build children’s cultural capital and life experiences, while also supporting local economies in Wolverhampton and Willenhall, and across the country.

Spoken like a proper former teacher! Expanding their cultural capital is what my children want to do every weekend. Whether it is expanding cultural capital, or having fun at a theme park in Blackpool or at Alton Towers, 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. I hope that today’s changes will make the summer holidays a bit easier for all families.

People across the Filton and Bradley Stoke constituency work hard, and being able to enjoy time together as a family this summer is important for everyone. I know that the Chancellor’s announcements on summer savings for families—including on popular attractions—and on free bus travel for children will be warmly welcomed at home. 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?

It is important that all the policies that we have set out are fully costed and fully funded, and the change that we have made to the foreign branch exemption will fund today’s package of measures. The reduction in inflation due to the measures I set out in my Budget last year, and the strong growth that we have seen—the fastest in the G7 in the first quarter of this year—make the package affordable and sustainable. That is why we are able to set out this support today.

I wholeheartedly welcome the Chancellor’s intervention at a time when the cost of living is increasingly putting pressure on working families in Darlington. This is a proper Labour intervention from a proper Labour Chancellor, and representation matters in this House. As I look around the Chamber, I can see Stoke and the ceramics industry supported. I can see Redcar, Middlesbrough and Stockton represented, and their industries supported. 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, so I thank her.

This package was not just designed by me; it was designed by hon. and right hon. Members of this House who have made representations to me about the cost of living, but also about the specific business needs and business challenges in their constituencies. Although I am proud to be the Chancellor who has delivered today’s package, I pay tribute to all Members who have contributed to it.

I congratulate the Chancellor on her skilful management of our economy in what are extremely difficult international circumstances. Growth is up, inflation is down and borrowing is down. I particularly welcome the great British summer savings scheme, which will make a huge difference to families and business in my constituency, but families will continue to worry about their day-to-day bills. Can she reassure my constituents that the fuel duty freeze, and the reduction in tariffs on foodstuffs, will be felt directly in their pockets?

Absolutely. 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. It is very important that the tariff reductions and the HGV duty changes are passed on to customers. I am slightly worried that my statement has unleashed a competition between hon. Members about whose constituency has the best summer attractions, whether it is soft play, theme parks, zoos or ice skating. I am being lobbied by my right hon. Friend the Member for Redcar (Anna Turley) about lemon tops in her constituency. I look forward to this continuing ahead of the introduction of VAT reductions on 25 June.

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. Although we all enjoy a treat, including me, it was disappointing to see the headlines leading with biscuits and chocolate, given that we have a public health crisis with obesity and diabetes. Could the Chancellor assure the House that the Government remain committed to the healthy food standard, which encourages supermarkets to promote healthy choices, and will she work with the Secretary of State for Health and Social Care to ensure that efforts to tackle poor diet and obesity remain a priority, alongside the cost of living?

A whole range of products are included in the tariff reductions, including imports of tropical fruits, bananas, olive oil and much more, but I expect that hon. and right hon. Members would be forgiven for wanting to have a chocolate biscuit after a day of work in this place.

I welcome the measures that my right hon. Friend has announced today, which will help ease the cost of living pressures on families in my constituency, and on its very many businesses and attractions—and in time for the Scottish school summer holidays. She is always welcome for award-winning fish and chips in my constituency.

Earlier this year, the Government set out welcome plans to break the link between the wholesale price of gas and the cost of electricity. Can my right hon. Friend provide an update on those plans and tell us how that will help reduce bills over the long term?

I am sure that my hon. Friend’s constituents in Edinburgh North and Leith will benefit from being able to enjoy attractions in the Scottish school holidays. People from the other nations and regions of the UK, or from further afield, will also be able to enjoy the attractions of Edinburgh this summer.

On the specific issue of delinking gas and electricity prices, this is both a short-term and long-term measure. 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 on to contracts for difference in order to have greater certainty about electricity prices, so that the gas price does not set the electricity price so frequently, giving greater stability of energy prices to businesses and families.

Inflation is down, wages are up, interest rates are down, and growth is up. These are the reasons why the Chancellor can make today’s announcements. Those on the Opposition Benches will not say it, but I will: thank you, Chancellor.

As the Chancellor said in her statement, the British industrial competitiveness scheme offers important support for economic growth, but at the moment it excludes the vital critical minerals sector, which, as she knows, is directly relevant to my Camborne, Redruth and Hayle constituency. Will she meet me to discuss energy support measures for the critical minerals sector?

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 we have instructed the National Wealth Fund to invest more in critical minerals, including the huge opportunities in tin and lithium in Cornwall. We need more diversified supply chains for critical minerals and rare earths, and Cornwall gives us a great opportunity to achieve exactly that. I look forward to continuing to work with my hon. Friend and the other Cornwall MPs to ensure that we bring good jobs, paying decent wages, to the region.

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?

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.

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?

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.

I thank the Chancellor for her statement, but I am obliged to point out that, in fact, Peppa Pig World, on the edge of my constituency, is the finest attraction in the country.