LIVE: UK finance minister Rachel Reeves answers questions in parliament

Major child poverty initiatives

The government removed the two-child limit on Universal Credit and expanded free school meals, claiming this will lift 450,000 children out of poverty and achieve the largest reduction in child poverty of any parliament on record.

Energy bill reductions

Reeves highlighted a £117 average reduction in energy price caps from April, an extended fuel duty freeze, and £53 million in support for heating oil costs in rural areas.

Housing and rent pressures

While citing a £39 billion social and affordable homes program as the long-term solution, Reeves declined to lift the freeze on local housing allowance but noted the Renters Rights Act will allow tenants to appeal excessive above-market rents.

De-escalation as economic priority

Reeves emphasized diplomatic de-escalation of the Iran conflict as the primary strategy to prevent further inflation, contrasting this with opposition calls for escalation that could worsen price pressures.

Agricultural supply chain threats

Acknowledging fertilizer and fuel cost pressures, Reeves noted red diesel prices have risen 70%, threatening farmers' ability to plant crops and jeopardizing food security.

Industrial energy support

The British Industry Supercharger and BICS schemes are providing energy cost relief to exposed industrial clusters and companies like Baker Hughes to mitigate supply chain disruptions.

Defense spending commitment

Reeves confirmed the government will reach 2.6% of GDP defense spending by next April, citing over 1,000 contracts signed since the election including £1 billion for medium helicopters and £500 million for radar systems.

Welfare versus defense balance

Defending the government's fiscal choices, Reeves noted the previous Conservative government increased welfare spending by £33 billion in its final year while failing to meet defense investment targets.

Financial services regulation

Reeves acknowledged concerns that over-interpretation of anti-money laundering rules delays international remittances by up to two weeks, affirming support for the sector while declining to preempt announcements in the upcoming King's Speech.

Export expansion initiatives

The government expanded UK Export Finance capacity to £80 billion and secured new trade deals with India, South Korea, the EU and US to support British businesses exporting globally.

Windfall tax defense

Reeves defended the energy profits levy on oil and gas companies like BP, stating it ensures windfall gains are taxed appropriately while maintaining historically low fuel duty levels.