Basingstoke MP questions Chancellor on rising energy prices

Mr Murphy, a member of the Treasury Select Committee, questioned Chancellor Rachel Reeves during the session on the Spring Forecast. He asked what the Treasury is doing to prepare support for households and businesses if energy prices rise as a result of instability in global energy markets.

He highlighted his concerns about the ongoing conflict in the Middle East, which could have a prolonged impact on global oil and gas prices. Mr Murphy asked what preparations are being made to help people and businesses if energy costs rise again.

During the hearing, Mr Murphy said it may be too soon for policy decisions to be taken, but it is not too early for the Treasury to plan ahead. He argued that support must be ready if it is needed and should be delivered quickly.

Luke Murphy and Rachel Reeves (Image: Office of Luke Murphy MP)

After the session, Mr Murphy said: “Families in Basingstoke and across the country are still feeling the impact of the cost of living crisis. The current conflict in the Middle East, shows just how exposed we have been left to international energy markets by the previous government.

“I pressed the Chancellor on whether the Treasury is working with the Department for Energy Security to plan targeted support for households and businesses if energy prices rise again.

“The lesson from Ukraine is clear: we need to be ready to act quickly and ensure support reaches those who need it most.”

Mr Murphy also questioned whether future support could be delivered in a more targeted way than the broad energy bill support schemes. These schemes, introduced by former Prime Minister Liz Truss during the Ukraine energy crisis, cost £78 billion.

In response to these questions, the Chancellor said the Government has already expanded the Warm Home Discount scheme. This provides additional support to millions of lower-income households. The Chancellor also pointed to the UK’s growing investment in homegrown renewable energy, saying that this will help reduce exposure to volatile international fossil fuel markets.

Mr Murphy welcomed the government’s progress in providing more targeted support. However, he said the Government must continue preparing for possible energy market volatility.

He stressed that the long-term answer to energy price shocks is to strengthen the UK's energy security. Mr Murphy said: “Energy security ultimately means producing more clean power here at home so we are less exposed to shocks we cannot control. But in the meantime, the government must ensure the right protections are in place so families are not left carrying the cost of global instability.”

He added: “The more clean power we generate here at home, the less exposed we are to global price spikes we cannot control. That is the route to both energy security and lower bills in the long run.”

The Treasury Select Committee session formed a key part of Parliament’s scrutiny of the Spring Forecast and the government's wider economic strategy. As a member of the committee, Mr Murphy continues to put a focus on living standards, economic growth, and protecting households from the cost of living pressures caused by global instability.