HM Treasury

Written Question – Foreign Relations: Iran, HM Treasury, 22 September 2015

Andrew Rosindell Conservative, Romford
To ask Mr Chancellor of the Exchequer, if he will make an assessment of the effect on the UK economy of improved relations with Iran.

Harriett Baldwin The Economic Secretary to the Treasury
The reopening of the UK Embassy in Tehran in August followed gradual expansion of our bilateral engagement with Iran over the last two years, allowing us to discuss a broad range of issues, including areas where we and Iran have sharply differing views.

The nuclear deal agreed in July will give the international community confidence in the peaceful nature of Iran’s nuclear programme, by imposing strict limits and inspections on its nuclear activity. If Iran completes the agreed actions on its nuclear programme, and nuclear related economic and financial sanctions on Iran are lifted, there will also be commercial opportunities for UK firms and indirect impacts on the UK economy, for example via global energy prices.

However, the impact of the deal will be complex, and the impact of improved relations with Iran on the UK economy is therefore uncertain.