The Secretary of State for Business, Energy and Industrial Strategy (Andrea Leadsom)
May I start by congratulating you on the superb way you have taken over the speakership, Mr Speaker? The atmosphere in the Chamber demonstrates the dignity and respect that we all want to see, and I commend you and your Deputies for the leadership you are showing.
Speaking of leadership, I wish the hon. Member for Salford and Eccles (Rebecca Long Bailey) all the best in her party’s leadership contest. It takes courage to put oneself forward, and I commend her for her service.
Also on leadership, there is one woman—the first ever female Conservative leader—who definitely deserves 10 out of 10: Margaret Thatcher. Just over 30 years ago, she became the very first global leader to warn of the dangers of climate change at the United Nations, saying:
“It is mankind and his activities which are changing the environment of our planet in damaging and dangerous ways.”
She predicted that
“change in future is likely to be more fundamental and more widespread than anything we have known hitherto.”
How right she was.
Mr Speaker, you recently called the Australian wildfires
“a wake-up call for the world.”—[Official Report, 7 January 2020; Vol. 669, c. 235.]
I agree. From wildfires in Australia to flooding in Indonesia and record temperatures across the world, the impacts of climate change are in the here and now. People throughout the UK and around the world are calling for us to act, and we are doing just that. Just as the UK has led the past 30 years of climate action, we will lead the next 30 years, seizing the opportunities of the green industrial revolution.
Since Margaret Thatcher made that speech in November 1989, the UK can be proud of its record of action. Since 1990, we have cut our emissions by 42% while growing our economy by 73%.
Caroline Lucas (Brighton, Pavilion) (Green)
Will the Secretary of State give way on that point?
Andrea Leadsom
In a moment.
Since 2000, we have decarbonised more quickly than any other G20 country. Since 2010, we have quadrupled our electricity generation from renewables, including through the installation of 99% of the UK’s solar capacity.
Andrea Leadsom
In 2017, low-carbon fuels produced more electricity than fossil fuels for the first time, and in that year we also saw the first coal-free day for a century, followed in 2019 by the first coal-free week and coal-free fortnight. Building on the world’s first climate change Act, last year we became the world’s first major economy to legislate to end our contribution to climate change altogether by 2050.
Alan Brown
We obviously welcome some of the things that the Secretary of State has outlined, but on the net zero target that she just outlined, Lord Deben, the chair of the Committee on Climate Change, said in his covering letter to an update report that
“policy ambition and implementation now fall well short of what is required”
to achieve the target of net zero by 2050. Is the Secretary of State going to address that in her speech?
Andrea Leadsom
I will indeed address it, and I can also tell the hon. Gentleman that the Government have taken the advice of the Committee on Climate Change in setting our legally binding commitments to net zero by 2050. Throughout the year, we will set out precisely how we think we can achieve that.
Caroline Lucas
The Secretary of State will know that the Government are off track when it comes to the fourth and fifth carbon budgets, but I wish to take her up on the constant repetition from the Government. She says that greenhouse gas emissions have fallen by 42% since 1990, but she knows that if we calculated consumption-based emissions and factored that in, our emissions have actually fallen by only 10%. Does she agree that we need a common understanding of what is facing us? If she keeps using numbers in a slightly misleading way, we are not going to get to where we need to be by getting our emissions down.
Andrea Leadsom
On the one hand, the hon. Lady is absolutely right: the carbon emissions figures for the United Kingdom do not take into account our consumption emissions or, indeed, our contribution to the reduction of carbon emissions around the world—both are important points. On the other hand, I would take issue with her from a philosophical point of view, because in order to measure progress, we need to have measurements, so it is incredibly important to talk about our UK territorial emissions at the same time. I look forward to working with the hon. Lady constructively, as she and I have done previously on a number of occasions, to make the UK’s ambition to lead the world in tackling climate change a reality in the run-up to COP26.
Andrea Leadsom
I will make some progress and give way again in a moment.
As the cooling towers have come down, wind turbines are going up in their thousands, with offshore wind capacity increasing by more than 500% under Conservative Prime Ministers. We can all be proud that no other country in the world has more offshore wind than the UK, with a third of global capacity off our coastline. This is creating thousands of future-proof, planet-saving, profit-making jobs, as well as skills investment all around the United Kingdom.
Many of my new, true blue hon. Friends have green-collar jobs in their constituencies. The constituency of Sedgefield makes underwater-cable protection systems that are exported all over the world. Great Grimsby leads the world in offshore wind operations and maintenance, while in Blyth Valley, where I was proud to pay a visit to support our excellent new colleague my hon. Friend the Member for Blyth Valley (Ian Levy) during the general election campaign, our offshore renewable energy catapult recently tested the world’s longest offshore wind turbine blade. At over 100 metres, it would, if we stood it next to Parliament, be taller than Big Ben.
Anna McMorrin (Cardiff North) (Lab)
The Secretary of State talks about offshore wind, but does she agree that this Government have effectively banned onshore wind, which is the most tried and tested of all forms of renewable energy technology? Will she commit to bringing that technology back across all parts of the UK?
Andrea Leadsom
What I can say to the hon. Lady is that onshore wind produces electricity for 10 million homes in the United Kingdom. We are promoting offshore wind as the most effective way to increase our power generation from renewable technology. It is a huge success story for the United Kingdom and something of which we can be proud. She will be aware that the Conservatives are committed to producing 40 GW from offshore wind by 2030.
Janet Daby
The Government’s policies are not sufficiently ambitious to meet their own climate change targets. Does she agree that according to the Government’s official advisers, the Committee on Climate Change, the UK is even off its own climate change target of an 80% reduction in emissions by 2050?
Andrea Leadsom
As I said in answer to the hon. Member for Kilmarnock and Loudoun (Alan Brown), we work very closely with the Committee on Climate Change. Our target of net zero by 2050 has been set on the basis of its recommendations so that we can grow our economy, sustain our future and contribute to tackling global climate change in a way that is sustainable for the UK, with the creation of green growth, so I am confident in that regard. We will bring forward more measures throughout the year to help us to meet that target of net zero.
Philip Dunne (Ludlow) (Con)
My right hon. Friend is being very generous in giving way. She mentioned the cooling towers coming down. Was she aware that the four cooling towers of Ironbridge power station came down during the course of the general election, and that one of the companies interested in that industrial brownfield land is one of the leading companies involved in driverless vehicles? If the company is successful, I hope that she will come and open the factory.
Andrea Leadsom
My right hon. Friend might be setting up a bit of contest, because I think that my right hon. Friend the Secretary of State for Transport, who is sitting next to me on the Front Bench, will be fighting me for that honour. None the less, my right hon. Friend the Member for Ludlow (Philip Dunne) makes a really good point about how, particularly in some of our areas of heavy industry, the fossil fuels of yesterday are giving way to the green future that we all want. He gives us a fantastic example of the work that is going on.
We have made great progress, but there is still much more to do. Our challenge now is to ramp up and scale up successes such as offshore wind, providing new sources of pride and prosperity across our United Kingdom.
In the first industrial revolution, our pioneers from Scotland to Cornwall forged their own path, and in so doing they became the envy of the world. James Watt’s Prussian rivals travelled hundreds of miles to sneak a glimpse of his steam engines in Birmingham. Richard Trevithick travelled as far as Peru to personally oversee his engines. Today, like them, we must be the first movers, not the last to act. From creating supply chains for electric vehicles to decarbonising our industrial clusters and designing low-carbon buildings, the opportunities of net zero are immense. In 2020, the first year of a new decade of decarbonisation, we must seize those opportunities.
Jim Shannon (Strangford) (DUP)
The Secretary of State has outlined a number of important stats. Local councils such as mine—Ards and North Down—are specifically involved in achieving climate change standards and environmental targets. Will she consider implementing a reward system for councils that are specifically involved in education and setting targets for them to achieve? If we do that, we may encourage councils to do even more.
Andrea Leadsom
The hon. Gentleman makes a very good suggestion. It is clear that central Government will not be the only actor in spending taxpayers’ money and driving every bit of innovation; they will be hand in glove with local civic leaders and, really importantly, the private sector. Government must set the direction and provide incentives, and then let others take the mission forward.
Steve Double (St Austell and Newquay) (Con)
My right hon. Friend rightly highlights Cornwall’s history in new technologies. Is she aware that large deposits of lithium have been identified in Cornwall? That has the potential to put Cornwall at the forefront of technology once again and to revive our precious mineral extraction industry. Will she ensure that her Department gives that fledgling industry all the support it needs to thrive?
Andrea Leadsom
My hon. Friend is a great champion for his constituency and for Cornwall more widely. In many ways, Cornwall is playing a major role in our moves toward net zero, and we in my Department will always be happy to talk to him about that.
Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
Will the right hon. Lady give way?
Andrea Leadsom
I will make more progress before giving way again.
Crucial to this debate is the UK’s global leadership. The UK contributes only about 1% of global emissions, and that figure is falling. We cannot solve the challenge of global climate change just by doing the right thing at home, so we are using our strength to help to transform the world, from doubling our international climate finance contribution to nearly £12 billion to using our £1 billion Ayrton fund to support the world’s most vulnerable—for example, by designing clean stoves for the billions who rely on firewood. In 10 months’ time, COP26 in the fantastic UK city of Glasgow will be a seminal moment for climate action, as well as a massive opportunity for British business—a giant global shop window for the UK’s clean tech prowess, with countries across the world heading home with their pockets crammed full of British ideas, technology and expertise.
Mr Dhesi
The Secretary of State mentioned electric vehicles and charging points, and Slough Borough Council, in my constituency, is leading the way in Berkshire. Although we gratefully receive platitudes regarding the good work of local authorities, what measures will the Government put in place to support excellent councils financially, in addition to those mere platitudes?
Andrea Leadsom
There are far too many initiatives for me to talk about now at the Dispatch Box, but one example is the £1 billion that was recently announced for electric charging infrastructure. If the hon. Gentleman writes to me, I shall send him a full submission on the subject.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
What the Secretary of State says about electric vehicles is absolutely right and I applaud it. My vast constituency comprises 5,752 sq km and has 18 charging points, so that is a move in the right direction. My point, however, is that electric cars are expensive—more than most people can afford. Does the right hon. Lady agree that a tax break—perhaps through the PAYE system —should be considered as a way to encourage people to buy electric cars?
Andrea Leadsom
My right hon. Friend the Transport Secretary is sitting right next to me, and he and I work closely on all sorts of incentives for people to move away from fossil fuels and toward decarbonisation. Of course, as the hon. Gentleman knows, transport is a key target area and we will talk more about it later.
Several hon. Members rose—
Andrea Leadsom
I will make more progress before I give way again.
From fighting climate change across the world to backing British ideas, we need a thriving economy to pay for it all. That is why I have set out my Department’s clear mission to build a stronger, greener United Kingdom. That mission is underpinned by three priorities: to lead the world in tackling climate change; to solve the grand challenges facing our society; and, quite simply, to make the UK the best place in the world to work and to grow a business. Today, as well as prioritising the pathway to net zero, we are solving the grand challenges facing our society, backing a new generation of problem solvers in science and business. From space technology to life sciences, the UK is developing satellites that measure climate change and creating ways to help people to enjoy five extra healthy years of life by 2035. From artificial intelligence to robotics, and from advanced manufacturing to green tech, the UK will seize the opportunities offered by this new industrial revolution. That will be underpinned by our commitment to increase our research and development spending to 2.4% of GDP by 2027.
Clive Efford (Eltham) (Lab)
Again, we are hearing the right noises from the Government, but the action is not being followed through. The commitment to net zero trips off the tongue, but can we achieve it if we continue to fail to meet our environmental targets?
Andrea Leadsom
I urge the hon. Gentleman to consider what I have just said in explaining the achievements, the ambition and what we are actually doing in practice. Perhaps he just needs to listen to what I am saying.
To seize the opportunities that lie ahead, we must make the UK the best place in the world to work and to grow a business. This Government will back business to the hilt, promoting inward investment and new export markets while also stamping out the poor practices that can sometimes give businesses a bad name. Our plan is to reduce burdens on business by reviewing and reducing business rates, and by resolving the scourge of late payments. As we leave the European Union, we will protect business confidence in supply chains, securing the best possible trading arrangements with our European partners. From diversity to sustainability and beyond, we will hold businesses to the same high standards, putting in place reforms to keep the UK a world leader in audit, corporate governance and transparency.
Dr Huq
I wanted to congratulate the Secretary of State on one thing that caught my eye in both the Queen’s Speech and last year’s Environment Bill: the biodiversity net gain mandated for planning authorities when making their decisions. That has not yet taken effect. Ealing Council has a meeting of its planning committee tonight. Will she encourage me by making a new year’s resolution of ensuring that such committees adopt the measure now so that the bulldozers do not sacrifice our nature? The future of our planet is at stake.
Andrea Leadsom
The hon. Lady will hear that there is a lot of support for her initiative across the Chamber. She is right that we do not want Government to be telling people what to do; we want people to draw their own conclusions and to seek to protect and preserve our incredibly valuable biodiversity, our green spaces and our precious habitats for future generations.
At the same time as making the UK the best place in the world to work and to grow a business, we want our employment Bill, to which we committed in the Queen’s Speech, to make sure that work is fairly rewarded. We want to protect workers’ rights and ensure fair pay, to create a world where flexible working is just called “working”, and to do more to support the crucial work that people do as carers and parents, helping people to balance work with the other things that matter in their lives.
Margaret Thatcher ended her UN speech in 1989 by saying:
“We are the trustees of this planet, charged today with preserving life itself—preserving life with all its mystery and all its wonder.”
I hope that that is something on which we can all agree, whatever our party or politics. Thirty years ago, politicians could barely have imagined the technologies that would be available today. Today, we can only dream of the world of 2050. Together—as a House, as a country and as an international community—we must act. Our action can make a global difference. Instead of self-doubt, we need self-belief in our ability to build the low-carbon, high-tech United Kingdom that we all want, a stronger, greener future for people across our shores, and a sustainable future for our planet.
Alan Brown (Kilmarnock and Loudoun) (SNP)
The word “revolution” means either an overthrow or a radical and pervasive change in society, especially one made suddenly. Have we really had a green industrial revolution? Have we had a revolution in Government? I would suggest that, if anything, there has been a counter green revolution, given that the Tory Government scrapped the Department for Energy and Climate Change, thus highlighting their priorities in recent years.
I have to acknowledge that we have made fantastic strides forward with renewable energy, but has it been a revolution? I would argue that, owing to the UK Government chopping and changing strategy, the process has been too stop-start to be classed as revolutionary. We have seen a welcome increase in the deployment of renewable energy, and UK Government support has facilitated that, but owing to policy changes, there have been too many peaks, troughs and, in some cases, catastrophic failures because of the actions of the UK Government.
The first example of that is onshore wind, which was deployed to great effect in Scotland, with prices falling rapidly due to the initial Government policies. It was a renewable energy revolution that Scotland embraced—one that saw 75% of gross electricity demand met by renewable generation in Scotland in 2018. However, the Tory shire prejudice against onshore wind means that the Tory Government are now blocking onshore wind across the UK, against Scotland’s wishes.
The Committee on Climate Change states that onshore wind capacity in the UK needs to increase from 13 GW to 35 GW by 2035 as part of the net zero transition, yet there is no route to market at present for onshore wind, despite it being the cheapest form of electricity generation. The former Secretary of State for Scotland should hang his head in shame for blocking the redeployment of onshore wind in Scotland. A report by Vivid Economics estimates that this could cost 2,300 jobs in Scotland and add £50 a year to everybody’s energy bills.
As the debate on Scottish independence re-intensifies, we need to remember the broken pledge and propaganda on onshore wind in 2014. We were told how well Scotland does out of onshore wind subsidies, how that would continue and how the UK as a whole would support onshore wind in Scotland, but instead the subsidies were removed a year or so after. That is another broken promise in 2014 that the public need to be reminded of.
When we consider renewables and wind in particular, it is a reminder that the transmission charging regime is a straitjacket around Scotland. The punitive charges, especially in the north of Scotland, can be a deal breaker for some developments. The charging system needs a complete overhaul to allow deployment of renewable energy for maximum benefit.
Similarly, we need a timescale for the delivery of interconnectors to Scotland’s islands. The change in classification for island onshore wind so that it can bid in pot 2 contract for difference auctions is welcome, but without the interconnectors these opportunities cannot be maximised. Ofgem needs to reconsider its rejection of a 600 MW interconnector to the Western Isles. Why is it holding out for a less ambitious 450 MW interconnector?
We need greater strategic vision from the UK Government on interconnectors. We need interconnectors to the continent and Norway, because of the abundance of hydroelectric energy. Is it not telling that Ireland is getting an interconnector to France, paid for by the EU at a cost of half a billion pounds? What does that signal for the future direction of the single energy market, and where does Brexit and a possible no-deal crash-out leave the UK without those vital interconnectors?
In the past—in another policy change—we had the carbon capture fiasco, when the Treasury pulled £1 billion that was on offer, and which looked set to deliver carbon capture and storage in Peterhead. That was a wasted opportunity—money down the drain with nothing to show for it—and it cost 600 jobs in Peterhead and ruined the chance for the UK and Scotland to be a world leader in that technology. I am asking Westminster to please back Scotland’s CCS potential. With 35% of the available capacity in the whole of Europe, we could still be a world leader. However, it needs a fast start, and better investment in Scotland. The Committee on Climate Change has made it clear that carbon capture is not a wish; it is a necessity in order to hit net zero by 2050.
Solar energy was another possible success story, yet, when it was looking good, the Tory Government pulled the feed-in tariffs and now they have quadrupled the VAT on solar installations, so they have destroyed the industry just as it was heading towards subsidy-free installations. That is another example of a UK Government policy revolution wreaking havoc on an industry. The VAT decision must be reversed as soon as possible.
And yet, when it comes to nuclear and the Government’s nuclear obsession, money is no object. We signed up to Hinkley Point C, which has a 35-year concession at a strike rate of £92.50 per MWh, and yet, as the Secretary of State is aware—she spoke about the benefits of offshore wind—offshore wind now has a strike rate of £40 per MWh for just 15 years, so it is about three to four times cheaper than nuclear energy. Why are the Tory Government continuing to pursue new nuclear projects? It makes no sense. [Interruption.] Can the Secretary of State explain why?
Andrea Leadsom
The hon. Gentleman will be very aware that there is a difference between the baseload and the variability of renewables.
Alan Brown
And the Secretary of State will know very well that that baseload is becoming a moot argument. It was argued that Hinkley Point C was required by December 2017 for the baseload to stop the lights going out. Now Hinkley will not be delivered till 2025 by the earliest, and the lights have not gone out. That shows how much the market has changed. Half the existing nuclear power stations will be decommissioned by 2024, and they cannot be replaced by new nuclear stations in that time, so the Government really do need to look again at their strategy, and new nuclear power stations is not that.
The Government say that the National Infrastructure Commission have said that there should be only one new nuclear power station, because of the change in renewables technology. Again, it seems that the Government are not actually listening to the body they say they are listening to.
As an alternative to nuclear, we also need to look at sector deals for investments such as marine and tidal energy, and also floating offshore wind. Where are their sector deals and what is happening with those?
Has there even been an industrial revolution? Again, I would suggest not. The UK Government failed to back the technological development of onshore wind and the fantastic opportunities there. That led to the manufacturing sector of that industry being developed elsewhere, particularly Denmark. That was a massive lost opportunity, and it cannot be replicated by other emerging technologies.
Even now, when it comes to offshore wind, the CfD auctions do not include a quality mechanism that would allow bidders to be rewarded for using local supply chains. That would be an ideal way to generate industrial jobs around the coastal communities, and it would provide greater opportunities for companies in Scotland, such as BiFab and CS Wind. Why are the UK Government not willing to incorporate such a procurement quality assessment mechanism in the auction process? It makes sense, and it would also reduce the construction carbon footprint for the delivery of such projects.
If we are to hit net zero in the UK by 2050, we need a proper green industrial revolution. We need the large-scale development of CCS, which, as well as creating jobs, will allow a long-term just transition for the oil and gas sector. We need radical measures to decarbonise our heat. Our domestic heating systems are the elephant in the room when it comes to the net zero target. I said earlier that 27 million houses relied on fossil fuels for heating, so a change in that mechanism for 27 million homes needs to be a proper revolution. It is likely that we shall see gas central heating boilers change to hydrogen boilers, and we know that hydrogen blending is a short-term transitional measure in decarbonising the gas network, but we need the strategies and policies in place, and the necessary changes in regulation to allow that to happen. There, too, we need concrete plans from the UK Government.
If I may switch back to Scotland, Scotland has been attempting to undergo a real green industrial revolution, but again we have been hampered by UK Government policies, the U-turns and the lack of strategic vision. Where is the energy White Paper that we were promised last year? It is ridiculous to have a clean growth strategy, an industrial strategy, but not an overarching or a linking energy policy that brings those together. We need to see that sooner or later.
Where is the Government response to the National Infrastructure Commission? We are still waiting on that. That is another organisation that states that energy efficiency should be treated as a national infrastructure programme. It would create jobs and it reduces carbon emissions, energy demand and fuel poverty. And yet, again, the Tory Government have not addressed that. They previously chose to go down the route of the green deal, which actually forced people to take out loans. Then the green deal led to scandal, with the mis-selling of solar panels by the company HELMS, leaving thousands of people with 25-year loans and faulty installations. The UK Government have still not rectified that. Will the Secretary of State consider that as well?
Meanwhile, the Scottish Government spend four times as much per capita on energy efficiency measures as the UK Government. For that, they have been praised by industry, third sector organisations and the Business, Energy and Industrial Strategy Committee. Put simply, Scotland leads the way in energy efficiency, and by 2021 the SNP Government will have invested £1 billion in energy efficiency programmes.
The one energy efficiency measure that the UK Government brought in is the energy company obligation scheme—ECO. But the Committee on Fuel Poverty states that that is not helping the people who require it the most. In effect, that means that those who struggle to pay their bills for energy costs now pay extra on their energy bills for ECO, which is then funding energy efficiency measures for those most likely to be able to afford them. That is completely bonkers. There is also a really serious point, because every year 3,000 people in the UK die as a result of fuel poverty—the second-worst rate in Europe. Urgent, coherent action is needed to address fuel poverty and to address energy efficiency measures.
Scotland leads in energy efficiency, and we also lead in climate change registration targets: the first Government to call a climate change emergency; a net zero target for 2045; and a 75% target reduction by 2030. According to the Committee on Climate Change, Scotland has become the leading UK nation in reducing greenhouse gas emissions under the Climate Change (Scotland) Act 2009. However, these latest targets are world-leading. Our 2030 target goes beyond what the Intergovernmental Panel on Climate Change report states is required globally to limit warming to the 1.5°, as per the Paris climate agreement. We have also taken the difficult decision not to reduce air passenger duty when it is devolved. In the past couple of days the UK Government have been flip-flopping on that, and are all over the place when it comes to APD.
Going forward, the Scottish Government’s “Programme for Government” puts the green new deal at the heart of Government policy. Securing transition to net zero will be the primary mission for the Scottish National Investment Bank, supported by £130 million this year. The creation of the SNIB will provide £2 billion of long-term capital to businesses and infrastructure projects, to help transform the Scottish economy, and again reduce carbon emissions. That contrasts directly with the UK Green Investment Bank, set up by the Tory Government and then sold off without assurances of green aims or a UK focus.
We know that transport is a major carbon emitter. If we are looking at the roll-out of electric vehicles, I suggest that we need to look at Norway. It has undertaken a real revolution towards electric and low emission vehicles. In 2019, 58% of new car sales were of plug-in low-emission vehicles and 42% of overall sales were of fully electric cars. Meanwhile, here in the UK, flags are being waved and we are supposed to celebrate the fact that we have reached 3% sales of electric vehicles. According to the Committee on Climate Change, the UK deadline of 2040 for the phase-out of fossil fuel vehicles is way too far ahead, and even then the plans for its delivery are too vague. I suggest that the UK Government look to a small, independent, prosperous country such as Norway for inspiration, and to see how things can be done properly.
The UK has made strides regarding carbon emissions, but, as we have heard, there is a long way to go. While we look for solutions, nature is unfortunately undergoing its own climate change revolution. We have seen that with the bushfires in Australia, the 4 million hectares of Siberian forest that burned a few months ago, and the fires in Greenland, Alaska and Canada. The six hottest years on record have been the last six consecutive years, with warming oceans and melting ice. Things are critical, and Lord Deben, Chair of the Committee on Climate Change, said that the UK’s efforts to deal with climate change have fallen short. Indeed, in the interim progress report he states that
“policy ambition and implementation now fall well short of what is required.”
We have a Prime Minister who ducked out of TV debates on climate change, so we are looking for real leadership on this issue. I am glad that Scotland is showing such leadership, but I know it could do so much more if it were a small, independent country that was able to grasp the nettle in the way that Norway has.
The Secretary of State for Transport (Grant Shapps)
Madam Deputy Speaker, let me congratulate you on being re-elected to your post, and say how fantastic it is to be closing the debate on Her Majesty’s most Gracious Speech this evening with you in the Chair.
There have been many eloquent and good contributions to this debate. They clearly set out the huge challenges that we face in decarbonising our economy. One point I would make straight off the bat is that, although there has been quite a bit of heat and light in this debate, there is actually an awful lot on which we entirely agree. This House has, after all, voted under this Government to get to zero carbon by 2050. There is almost an auction of ambition about how we get there in the fastest way. It is right and proper that we challenge each other with different ideas, many of which have come through the contributions this afternoon, in order to come up with new ideas. Some of them are, I think, ideas that could be taken further, particularly in the field of transport. Other ideas, I know, have problems. None the less, all were presented and suggested in the best possible light and, because of that, I think that all parts of the House will agree that this has been a very good and useful debate this afternoon.
It is the first time that I have been at this Dispatch Box since yesterday’s Flybe announcement. I just want to touch on that matter for a moment. Flybe is an airline that flies 9 million people a year. It connects some of the most remote parts of our country—in fact, some of the most remote parts of our nation. I was pleased to see that the union, the British Airline Pilots Association, welcomed the rescue, and I was somewhat surprised to hear the Opposition spokesman say that he is not keen on this rescue, because it would have quite literally left quite a large number of communities completely stranded.
Andy McDonald
I am grateful to the Transport Secretary for giving way. Had he been in the Chamber yesterday when I spoke on the issue, he would have heard me say that I welcomed the Government taking action in respect of Flybe and recognised the importance of Flybe services to our communities right across the country. How we go about it is the important thing. The International Airlines Group is particularly interested in the package, and it will be asking why one corporate entity has been preferred over another. It is a question for him to address, but I hope that he accepts that it is necessary for intervention to take place.
Grant Shapps
I apologise to the hon. Gentleman and thank him for putting the record straight. I was not in the Chamber yesterday because I was dealing with the issue itself, but it sounded to me, from his comments earlier, that he regretted the rescue of Flybe, which I was surprised about because there are 2,400 jobs at stake and communities that would have had no other way of being connected. Just as an example of this, there are 46 Flybe routes that no other airline covers. There are 11 destinations that have no rail links whatever, and a further 12 that it would take more than six hours to get to. It was absolutely the right thing to do because it helps to connect our communities and level up our country. That is the right approach for a responsible Government when there is a strategic national interest, which is what makes this different from previous airline failures.
None the less, because the issue has been raised in this afternoon’s debate, I will say that we want to see aviation become much greener. This is an enormous challenge and, indeed, as many Members have said, an enormous opportunity for this country. If we can get to the front of that technological research and development, we can offer electric planes to the world. Right now, it is good to see that the University of Cranfield, among other places, is working on an aircraft—a Britten Norman aircraft—which is the only British-manufactured general aviation aircraft, a commercial passenger plane, being converted to an electric aircraft, which will fly in the Scottish highlands and do the island hops. It will be the world’s first commercial electric aircraft, and that is happening in Britain. Across the House, we should all be doing everything we possibly can to get to the forefront of electric aviation and, probably in between then and now, hybrid aviation. It is a big part of my work. Members may think I am absolutely obsessed with aviation, but that is where ideas and new technology will come from, so it is right to focus on it.
Vicky Ford
I am grateful to my right hon. Friend for mentioning Cranfield University, because I recall being asked to dig the first turf in the building of that facility about a decade ago. It just shows what can happen in 10 years. Does he agree that we need to harness the power of consumers? Some low-cost airlines give consumers the opportunity to carbon offset, but Flybe does not. Will he join me in encouraging airlines to give consumers at least the option to offset?
Grant Shapps
I agree that it is a great idea for airlines to offer carbon offsetting, but although that is a good first step, I want to go further. We have the opportunity, the brains and the capacity in this country to invent the future of flight, just as we helped in so many ways to invent flight initially. I want us to focus on that, and a lot of money and research is going into it now. At Cranfield, there is the E-Fan X plane—a BAe 146 aircraft built by de Havilland in my constituency back in the day, which is being converted into an all-electric aircraft in a project sponsored by, I think, Airbus and Boeing. This is a fantastic opportunity and we must take it.
Several hon. Members rose—
Grant Shapps
If hon. Members do not mind, I will make a little progress. I am right at the beginning of my speech and there will be plenty of opportunities to intervene.
Caroline Lucas
If we can get some electric planes, I will be happy, but does the Secretary of State accept that, right now, the increasing number of individual flights is outweighing the efficiency gains in each individual flight? In other words, improvements in energy and fuel are undermined by growing demand. Does he accept that until we get to the sunny uplands of electric planes, demand needs to be constrained, and that the blanket approach of APD will not constrain demand?
Grant Shapps
Let the Member who has never flown argue on that subject. I mean no disrespect, but the reality is that we have to reach an in-between place involving hybrid fuels. We probably have to go through a hybrid stage, as we have with road vehicles, where we use biofuels and other things. The Department is doing a huge amount of work in that respect.
Grant Shapps
With hon. Members’ permission, I will make a little progress first. I have not even touched on anyone else’s speech yet, so let me talk about this afternoon’s debate. We know that global warming is one of the biggest threats to humanity. That is why tackling climate change is so important, and my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy set out some of the measures we are taking.
The contributions to the debate have been particularly impressive, and I pay tribute to the nine Members I noted making their maiden speech today. Each was brilliant in different ways. My hon. Friend the Member for Barrow and Furness (Simon Fell) spoke about the poor rail service in his constituency—I am sorry about that. Other Members mentioned rail services in relation to Northern. The House will be aware that I have been speaking about that recently, and will again very soon. He made a beautifully pitched and calmly delivered speech, showing how much he cares about the community he now represents. Our hon. Friend the Member for Birmingham, Northfield (Gary Sambrook) spoke in great terms about his constituency and everything going on in the community, and did a wonderful job.
The hon. Member for Coventry South (Zarah Sultana) described her constituency with great care, leaving us in no doubt about her passion for it. My hon. Friend the Member for East Surrey (Claire Coutinho) made a fantastic speech, showing great knowledge of subjects including offshore wind. She pointed out that seven of the 10 largest offshore wind farms are here in the UK —a great statistic. The hon. Members for East Lothian (Kenny MacAskill) and for Pontypridd (Alex Davies-Jones) also made their maiden speeches in this debate. My hon. Friend the Member for Bolsover (Mark Fletcher) proposed a statue of the “Beast of Bolsover”, although we do not know how that would be taken. His was a fine speech.
The new hon. Member for Warrington North (Charlotte Nichols) talked about her constituency—the constituency in which I got married, it so happens—with great passion.
Finally, the hon. Member for Sheffield, Hallam (Olivia Blake) also spoke about her constituency very passionately indeed. There were fantastic speeches all around, and all concentrated on today’s subject of green growth.
Reducing carbon in the atmosphere is incredibly important. I know we have had a bit of a debate about it this afternoon because we will say, quite rightly, that our economy has expanded by over two thirds since 1990, but we have managed to cut carbon emissions by more than 40%. I want to point out—because this was questioned during the debate—that these are figures not that we have somehow come to but which have been calculated under the internationally recognised system for assessing the amount of carbon that has been cut. The figures do show a 40% cut since 1990, which is faster than any other G20 country.
We continue to lead the world in this process. We have legislated for zero carbon by 2050, becoming the first major economy to do so. Of course, what happens internationally is important, but I do not accept the argument that just because we cannot control what everybody else in the rest of the world does we should not be making the effort ourselves. It is the right thing to do, and we should be proud of our performance in this area.
We also know that measures have to be viable and practical. It is easy to say that we should just follow Norway, where a number of electric cars are sold. Does the House know why that is so? It is because it does not have a domestic car production facility to protect before the change to electric; it does not produce its own cars. So to all those Members who say, “Look, why don’t we just do it tomorrow? Why don’t we just demand that every car is electric from now on?”, the answer is: because every single factory in every single one of the constituencies affected would be closing tomorrow. We have to work with the industry and help it to make the transition, and that is what this Government are doing every single day of the week.
Let us not forget what this country has achieved so far. We ratified the Paris agreement. More than half our electricity—53%—now comes from low-carbon sources. We fostered green industry, which is now worth £45 billion; and that goes to my previous point that we need to have a period of transition for industry. The new green sector now employs 430,000 people, so it is growing all the time. We are setting a net zero target, and have committed around £2 billion to green growth initiatives. An awful lot is happening.
To manage these great efforts, we know that there has to be a framework—an industrial strategy. The clean growth strategy, which details our carbon-cutting plans through to 2032, is exactly that document. In July we published our green finance strategy to trigger investment in green infrastructure technologies and services, from offshore wind to energy-efficient housing. Of course, the Prime Minister will chair the new Cabinet Committee on Climate Change to help co-ordinate the effort of the whole country to get to zero carbon. Later this year the UK will have the honour of hosting the climate change summit in Glasgow.
Alan Brown
I want to go back to the argument of, “It’s great for Norway because they don’t have a domestic car production industry to protect, so they can do what they want.” What are the UK Government doing to change the domestic car production industry in the UK to allow it to capitalise on this market? The Government were very good at making behind-the-doors, closed deals when it came to advance talks about Brexit, so what are they doing to ensure that these companies can adapt to electric car manufacturing?
Grant Shapps
I am very pleased that the hon. Gentleman has asked that question. There is £500 million to help a gigafactory come to this country. That was not done behind closed doors; we announced it publicly. I am sorry he had not spotted the announcement. This is a very positive way of ensuring that more car production comes here. I should also let him know that one in five electric cars sold in Europe last year were made in the United Kingdom—made right here.
Our support for the electrification of vehicles is second to none. Let me give some examples. We now have more charging locations in petrol stations, as one of my hon. Friends mentioned. We have over 200,000 plug-in chargers in home locations. We have much more to do, though, and that is why both through the money already announced—£400,000—and another £1 billion in our manifesto we are pledging to put a lot more resource into having more charging locations so that people do not have as much range anxiety when they drive one of these vehicles. The need for that was one of the key points made by Members across the House.
I know exactly why people are concerned. I drive an electric car, as I have mentioned before. I know the anxiety of wondering about whether one will get to one’s next location, but the good news is that in reality, rather than just the concern about it, I have never found it to be a problem. Every single service station on the motorway network in this country—now bar one, I think—has electric charging. However, I want that charging to be faster. I want it to be rapid rather than just a so-called fast charge. This Government absolutely share the ambition of this House to get that job done and get it done quicker.
At the UN climate action summit, as Members know, the Prime Minister announced that we would double our contribution to £11.6 billion between 2021 and 2025. That will do a huge amount to assist. I heard someone say during the debate, “That’s not right because it’s coming from international development.” If we do not think it is right to use international development money to save this planet, then I do not know what the money is there for. It is absolutely the right thing to be doing.
I am delighted that the Queen’s Speech includes significant measures to move forward our green programme even further. In particular, the environment Bill will put accountability and practical delivery at the heart of our agenda while providing much-needed certainty for business. The Bill includes measures to improve air quality, restore habitats, increase biodiversity, build a less wasteful economy—hon. Members have mentioned things such as plastic waste, which it will deal with—and better manage our water resources.
Crucially, the Bill will introduce a system for new, legally binding long-term targets in all these critical areas so that central and local government—there has been some talk about how local government fits into this picture—are clear on their legal responsibilities to protect our precious environment. I have been working very actively with local authorities—for example, in the provision of electric car charging points—to ensure that they have everything they need to be able to accelerate this programme as quickly as possible.
Those targets all have a minimum duration of 15 years, because given the scale of the challenge we face, which has been so well articulated by Members across the House, we believe that we have to be extremely ambitious. We have to consider the implications for business, for industry and for the public. We must take people with us as we adapt to this enormous change, use new technology, and make sure that we hit the necessary emission goals, as we will have to do because they will be there in law.
Although air pollution has reduced significantly since 2010 and emissions of nitrogen oxides are at their lowest level since records began, I want to acknowledge a couple of areas where I share the concerns of the hon. Member for Middlesbrough (Andy McDonald). Since energy is no longer the most polluting part of our economy because we produced 53% through renewable sources last year, transport is now the most polluting part of our economy. I think he gave the figure: 27% of all pollution comes from transport, and 90% of that from vehicles. There is a huge prize in solving this problem, and the technology is already here. I heard Members talk about the use of alternative and different types of energy for cars—hydrogen, for example. These technologies are coming along. We have a £28 million programme to further the production of hydrogen vehicles. In transport, it is horses for courses, so heavy items such as trains will work well in future through hydrogen, and lighter items such as cars will work better through electricity. It is a question of developing in all those different ways, and that is what we are determined to do.
There was a very interesting exchange about the amount of NO2 in our atmosphere. A huge amount of these particles come from transport, and although that discussion was about whether pollutants and CO2 are the same thing—they are clearly not—the reality is that if we take a lot of the same steps it will solve the same problems. It is good and right that the Bill we are introducing tackles both those things: fine particulate matter and CO2.
We know that there is a huge amount to be done, and I know that the whole House wants us to get there. One of the most controversial areas is when we end the sale of petrol and diesel cars. I heard a number of calls in the debate to do that earlier than the already pledged 2040. I want to do that. I have spoken about that and we will consult on it, but we need to do it in a way that ensures that people do not end up coming back to the House saying, “What happened to that industry and those car producers in my constituency?” We have to do it in a way that works and takes the whole of the economy with us in the best possible way.
From some of the discussion this afternoon, it may not be obvious that the number of electric cars has grown from just 1,500 a decade ago to 200,000 today. The growth in the last year alone has been enormous. Electric car sales are taking off. I think I am right in saying that we have the second largest market in the European Union for ultra low emission cars.
We are doing an awful lot of things behind the scenes to encourage take-up. For example, if someone goes to pay their road tax on the DVLA site right now, they will see a page that suggests that they might be able to pay less road tax if they transfer to an electric car. I know that there are concerns about the overall costs of buying a new electric car, but I want to make this point. When someone buys an electric car, they will find that their petrol bill disappears—it is replaced by an electric bill, but that will probably be a 10th of the cost. They will find that there is no oil for the car and no servicing for the car, and the car tax may well be much lower. Given that 85% of car buyers buy on a finance package—a personal contract purchase—the overall lifetime experience of owning the car may not be all that different. But I agree that we need to work hard to ensure that, as with solar, where we have seen a 50% cut in the cost, we see the same with electric cars.
This has been an excellent debate. The Queen’s Speech has laid out an exciting programme to prepare Britain for the future, making us a more prosperous yet greener nation. We have a unique opportunity today, after three and a half years in which Brexit has—let’s face it—dominated everything about politics and absorbed so much time and energy. We now have a strong mandate to deliver our vision for a modern, green, growing economy, and that is why I commend the Queen’s Speech to the House.